Anyone with a finger on the pulse of the pricing of pellets?

[Phoenix Hatchling]

Well, one more day and January is in the books. I still have five bags left from my first ton of pellets, and that burning was strictly for extra comfort, as the price of oil is to tempting to pass on. I am certain many pellet dealers are sitting on a large stash of unsold, and manufacturers are likely not moving them either. Has anyone blinked with pricing yet and lowered their costs? With many people having had stocked up early, I am certain I am not the only one who will have surplus at the end of this season. While I certainly don't want this supply chain to hurt financially, I would like to see them act upon pricing as any other commodity and fluctuate their prices...not only to assume they can simply raise prices annually.
Just curious, as I won't be NEEDING pellets anytime soon.

 

[Phoenix Hatchling]

Nothing??

 

[Harman Lover 007]

Might want to try posting in the pellet section up top....

 

[linc1216]

Nothing??[/QUO

I've been burning Lignetic (green lettered bag) the price is right. The local hardware/lumber yards near me where I purchase these pellets from said they have plenty of pellets and their price is $5.45 per bag.

I've been getting 1/2 ton every two weeks. I know the price of NG is low, but just like you... I love the comforting heat my pellet stove provides. Also, love Weimaraners great dogs! Had one years ago.

 

[billb3]

UK and Europe demand for american biomass is going to pressure biomass product price up here.
Their planned biomass use and extraction from American forests will reach 20,000 metric tons by 2020, up from 5,000 metric tons just 5 years ago.

Prices will trend up. Any time demand pressures a resource this happens. A warm Winter might find some retailers clearing out excess inventory but this is an anomaly not a trend. Just like the current price of oil is an anomaly. Take advantage of it while and if you can.

 

[Phoenix Hatchling]

Might want to try posting in the pellet section up top....

Already in the pellet mill section, but thanks anyway....

 

[Phoenix Hatchling]

UK and Europe demand for american biomass is going to pressure biomass product price up here.
Their planned biomass use and extraction from American forests will reach 20,000 metric tons by 2020, up from 5,000 metric tons just 5 years ago.

Prices will trend up. Any time demand pressures a resource this happens. A warm Winter might find some retailers clearing out excess inventory but this is an anomaly not a trend. Just like the current price of oil is an anomaly. Take advantage of it while and if you can.

But all other commodities fluctuate in price, and to trend solely upwards flies in the face of reason. Going by demand, the price of pellets SHOULD have gone down...substantially.

 

[Harman Lover 007]

Already in the pellet mill section, but thanks anyway....

There are two separate sections in the Pellet Mill that deal specifically with pellet pricing and pellet reviews and opinions. I looked there first after your post and didn't see that you had posted there. My apologies....
https://www.hearth.com/talk/forums/wood-pellet-pricing-reports.29/
https://www.hearth.com/talk/forums/2015-16-pellet-fuel-reviews-opinions-questions.44/

 

[billb3]

But all other commodities fluctuate in price, and to trend solely upwards flies in the face of reason. Going by demand, the price of pellets SHOULD have gone down...substantially.

Based strictly on demand, which includes potential for demand, mid-Winter really isn't a usual time to expect prices to find a floor. Traditionally this has been late Spring/early Summer. It will be interesting to see how retailers move or sit on inventories that haven't sold. After the potential for demand decreases. Further.
Will one bad selling season inflate prices for next year ?
The potential exists if enough manufacturers decide to sell into an export market or into it more heavily next year, while they can. A bankruptcy or two could further inflate future prices.
Will future business students be studying the case example of how low oil prices put a lot of the smaller pellet makers out of business, further corporatizing the market and inflating prices ?

 

[Cedarjunki]

I do not see the prices falling all that much if any at all. If next year is a cold one i would expect the remaining plants to raise the price even more.
Making my own sounds better and better every day.

 

[Bioburner]

Went to HD and the local Fleet Farm store and both were discounting pellets. $250/T normally $319 on pine and $199/T hardwood

 

[relxn88]

At $199 a ton , pellets only have to drop another 10 cents to become equal to the fuel oil I'm using at $1.59 a gallon.
http://www.pelletheat.org/compare-fuel-costs Unfortunately, the pellet sellers, around where I live, are selling pellets for 6 - 8 dollars a bag. With the world in a 58% oversupply of crude oil, it may be awhile before I bother to fire up the pellet stove.

 

[DougA]

TSC in Canada has a new sale on a 40 lb bag for $4.99 Cdn. Reg. $7.29 No idea if that is bad or good but I rarely see a sale on them. I'm a wood guy.

 

[SXIPro]

I do not see the prices falling all that much if any at all. If next year is a cold one i would expect the remaining plants to raise the price even more.
Making my own sounds better and better every day.

Or bail from the pellet game altogether.

 

[Cedarjunki]

Or bail from the pellet game altogether.

For me that would mean buying a new oil/propane furnace and ductwork, oil drum, etc.. And who knows what its going to be like in 5 years. $10/gallon?

I am not one of the fortunate fellows that can dish out for whatever is cheapest when it rolls around. I bust my ass for the little i have and if i can heat my place on my time instead of with my paycheck. Why not?

 

[Phoenix Hatchling]

At $199 a ton , pellets only have to drop another 10 cents to become equal to the fuel oil I'm using at $1.59 a gallon.
http://www.pelletheat.org/compare-fuel-costs Unfortunately, the pellet sellers, around where I live, are selling pellets for 6 - 8 dollars a bag. With the world in a 58% oversupply of crude oil, it may be awhile before I bother to fire up the pellet stove.

My break even point with oil, for the pellets I had purchased, was at $2.45 per gallon. Now paying $1.94 per gallon without the task of lugging bags and cleaning/vac the stove.

 

[Phoenix Hatchling]

And who knows what its going to be like in 5 years.

True. But will the pellet industry float their pricing, or just continue raising it methodically each year?

 

[Cedarjunki]

True. But will the pellet industry float their pricing, or just continue raising it methodically each year?

Garunteed pellets will up as well. But what difference would that make to me if i start producing my own?

 

[Phoenix Hatchling]

Garunteed pellets will up as well. But what difference would that make to me if i start producing my own?

Didn't know you were producing your own. I guess I wouldn't care either if I made my own oil...or pellets...or whatever

 

[Cedarjunki]

Didn't know you were producing your own. I guess I wouldn't care either if I made my own oil...or pellets...or whatever

Sorry thought you read the posts.
SXIpro commented about bailing on pellets after i brought up the thought of making my own.

What too many people do not realize is that not everybody has oil or propane heat. Many people like myself have electric.

 

[Phoenix Hatchling]

Sorry thought you read the posts.
SXIpro commented about bailing on pellets after i brought up the thought of making my own.

What too many people do not realize is that not everybody has oil or propane heat. Many people like myself have electric.

Aha! Now understood!

 

[Jake86]

Never fear, big government is here to help out. The POTUS plans to put a $10. a barrel tax on oil. That tax will probably stay forever unless added to. Don't throw away your pellet stoves !!

 

[Tonyray]

Never fear, big government is here to help out. The POTUS plans to put a $10. a barrel tax on oil. That tax will probably stay forever unless added to. Don't throw away your pellet stoves !!

yes.. I don't exspect Oil to stay this low forever...
no problem keeping my pellet stove in case....

 

[Harmanizer]

I will never get rid of my pellet stove.You would have to pry it from my cold dead hands.

 

[slls]

Wait until spring, market is flooded. Some manufactures are giving dealers great deals now, not moving many pellets.