Anyone still needing pellets?
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Only in my basement- lol
The odd thing is that PA has probably more pellet plants than other states yet in my area pellets can be hard to find in PA. Yet I can drive a couple miles over the border and find them many places in Maryland. Overall, I have not expereiced a shortage as I have been able to buy pellets throughout the heating season so far. I just can't find those darn Lignetics locally anywhere.
The odd thing is that PA has probably more pellet plants than other states yet in my area pellets can be hard to find in PA. Yet I can drive a couple miles over the border and find them many places in Maryland. Overall, I have not expereiced a shortage as I have been able to buy pellets throughout the heating season so far. I just can't find those darn Lignetics locally anywhere.
Only shortage around my area is finding pellets for a reasonable price.
Plenty around if you are willing to pay the crazy high prices.
....which I am not.
Plenty around if you are willing to pay the crazy high prices.
....which I am not.
It might be time to hop in the truck and take ride. I'll promise the wife some shopping at White Marsh Mall and Golden Ring.
No shortages in NH, just high prices. Everytime I go to Sam's Club I pick up a couple of bags. Last week 5.24 a bag cheapest I've found so far this winter.
That sounds great, thanks!
Well I have one poor excuse and one good excuse:
- The poor excuse is I don't know anything about it.
- The good excuse is that my wife would not have anything to do with it.
I can't live without my stove and I can't live without my wife.
Both can be very hot.
But my wife helps bring home the bacon, my stove on the other hand won't even cook it.
:down:
I think there are slight shortages in Delaware. Raven pointed me to a Southern States that does have them in stock for $330 a ton. I believe they are limiting how much a customer can buy though. The local stove shop has some in today but will only sell a half ton at a time. The nursery where I just purchased my stove allowed me to order one ton but won't let me order anymore, at least not until next month. So....I guess they can be found but either at a huge price (over 7 dollars a bag at a new grocery store), or other places are just plain out of stock.
- Rosemarie
- Rosemarie
pellet gal said:
I would be interested in your opinion why this is as you work for PA Pellet?
Beginning of last winter pellets were $4 a bag and oil was $4 a gallon. This winter pellets are $6 a bag, and cash sale oil is $1.97 for me today.
Thanks, Mike -
Good Question Mike!
Because I sit here everyday at this desk talking to dealers and end customers I have been asked that question a lot.
I cannot post dealer costs but I can tell you that our raw material costs have doubled since May of 2008.
We in turn increase costs to dealers. Then you have to figure in freight. Fuel is cheaper at this moment but it won't be for long.
Our pellet price to the dealer has not increased since july 2008 but freight has finally started to drop.
The dealers will be able to lower there price a bit if they choose because it will cost them less to get them.
Now keep in mind for some of the dealers there freight may have only decreased $50.00 on a load of pellets 24 tons per load.
Meaning if your lucky the price to the end customer would drop $ 2.00 per ton.
My biggest concern right now is people will wait and wait and wait like they did last year and we will go through this all again.
I think if everyone were to stay true to there dealers and not run to the cheapest outlet every chance they get the dealers
would have some idea what demand will be in there area . Then they could place there early orders . We the pellet mills would not have to layoff.
You as the consumer would be flush with pellets and all would be right.
Because I sit here everyday at this desk talking to dealers and end customers I have been asked that question a lot.
I cannot post dealer costs but I can tell you that our raw material costs have doubled since May of 2008.
We in turn increase costs to dealers. Then you have to figure in freight. Fuel is cheaper at this moment but it won't be for long.
Our pellet price to the dealer has not increased since july 2008 but freight has finally started to drop.
The dealers will be able to lower there price a bit if they choose because it will cost them less to get them.
Now keep in mind for some of the dealers there freight may have only decreased $50.00 on a load of pellets 24 tons per load.
Meaning if your lucky the price to the end customer would drop $ 2.00 per ton.
My biggest concern right now is people will wait and wait and wait like they did last year and we will go through this all again.
I think if everyone were to stay true to there dealers and not run to the cheapest outlet every chance they get the dealers
would have some idea what demand will be in there area . Then they could place there early orders . We the pellet mills would not have to layoff.
You as the consumer would be flush with pellets and all would be right.
CZAR,
Sorry to not have been more specific.
I do not see the price dropping to the early buy price of last year.
It may drop 10%-20% in some areas but the fact of the mater is if we don't pay the price for raw materials we won't produce pellets.
As the manufacturer I would love to charge less. Why not My pellet price is based on raw material.
If that drops and sawmills begin to run more why wouldn't I pass my savings on to my dealers.
Sorry to not have been more specific.
I do not see the price dropping to the early buy price of last year.
It may drop 10%-20% in some areas but the fact of the mater is if we don't pay the price for raw materials we won't produce pellets.
As the manufacturer I would love to charge less. Why not My pellet price is based on raw material.
If that drops and sawmills begin to run more why wouldn't I pass my savings on to my dealers.
pellet
al:
What you are saying makes sense. I question one thing. You speak about the raw material shortage. Do you see that as a global problem in the US.? I have been reading that many mills are enlarging, and that many new mills are starting up or in development. This would mean more pellets available and more competition. How are these mills pulling this off if all mills are suffering from a raw material shortage. I don't believe that the shortage is a global wide spread issue, but more of a regional problem. Some mills use their own waste material from their primary product and others are planning on harvesting trees directly for pellet production. I am just curious as to your insiders look on this.
al:What you are saying makes sense. I question one thing. You speak about the raw material shortage. Do you see that as a global problem in the US.? I have been reading that many mills are enlarging, and that many new mills are starting up or in development. This would mean more pellets available and more competition. How are these mills pulling this off if all mills are suffering from a raw material shortage. I don't believe that the shortage is a global wide spread issue, but more of a regional problem. Some mills use their own waste material from their primary product and others are planning on harvesting trees directly for pellet production. I am just curious as to your insiders look on this.
The NEW&IMPROVED;Athens pellets are $215/ton at the mill. Hope to pick up a ton Sat. for a group of us to try out. If it happens, I'll let ya know how it works out.
pellet gal said:
https://www.hearth.com/talk/threads/33345/
If you look at this thread you will see that pellet manufacturer's need to compete with heating oil in the NE. Given that the price of oil was just another bubble that needed to pop..... I believe you will need to lower your price to move any pellets next season. JMHO
I also think you will see corn/wood grass/wood hybrid pellets coming out soon.
-G
pellet gal said:
Why should I stay true to my dealer if he wants to bend me over the pellet pallet??? I can tell you this consumer will not be buying pellets at today's over inflated prices, regardless of reason for these crazy prices. Prices in CT will have to be below $225 before I even consider buying again, and I might not buy again until I see $215 or less. If this doesn't happen, that's fine with me as well since I have plenty of other choices. If my dealer 'Patty Pellet' is selling at $279 and 'Joe's Discount Pellet' is pushing inventory at $215, guess who's getting my business??? So IMO, it's not the consumers that are causing everything to not be 'right'... it's the cost of the pellets on the market. If the pellet manufactures/dealers need to get $300/ton to cover their costs and make a profit, they better start looking into another line of business because educated consumers will not be consuming at these price levels given the lower cost alternatives.
Just my 2 cents.
Well guys it's like this.
Raw material costs are set by my suppliers.
We along with the other mills in Pa,WV and NY compete with each other and with Paper mills for the same material.
I could get materials from more suppliers if we were willing to take grindings.
For example ground up Pallets and Demolition projects.
The problem with those kinds of raw materials is who knows what is in there.
Pallets especially the ones the are no good and therefore would be ground up have such a variety of wood in them I would not be able
to sell them as anything but a wood blend pellet. My cost for the material would be the same because the paper mills will take it for the same cost as good
material . Your ash content would be over the top and The magnets in my system would be so full of nails it would cost me more in the end .
The quality would be shameful to say the least. I have no market for a standard pellet.
My goal everyday is to supply the best pellet I can to my dealers.
I hope they in turn will give you the best service.
Raw material costs are set by my suppliers.
We along with the other mills in Pa,WV and NY compete with each other and with Paper mills for the same material.
I could get materials from more suppliers if we were willing to take grindings.
For example ground up Pallets and Demolition projects.
The problem with those kinds of raw materials is who knows what is in there.
Pallets especially the ones the are no good and therefore would be ground up have such a variety of wood in them I would not be able
to sell them as anything but a wood blend pellet. My cost for the material would be the same because the paper mills will take it for the same cost as good
material . Your ash content would be over the top and The magnets in my system would be so full of nails it would cost me more in the end .
The quality would be shameful to say the least. I have no market for a standard pellet.
My goal everyday is to supply the best pellet I can to my dealers.
I hope they in turn will give you the best service.
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