Better late than never?

[DC85]

AKA: is this putting the horse before the cart?

Hey all, I know it's late but I am about 95% certain about getting a pellet stove but haven't finallized on a type yet. So, obviously I won't know about install dates etc. until that happens. I would like to do a bit more research before finallizing on a stove.

But, my question is, based on what I have read about pellet supplies and pricing, do you think it makes sense to go ahead and order pellets even though I haven't gotten the stove yet?

I'd be interested in any thoughts that anyone is interested in sharing.

Thanks
Don

 

[ducker]

you can if you want. I wanted to at least put a deposit on a stove and get an eta when it will come before I bought my pellets. For all we know there will be a HUGE influx of pellets in the fall.

I kinda don't see the pellet prices dropping much at all, come the winter. But I'm new to the pellet program.

I would say, if you are quite sure you're getting the stove, why not. But if you aren't that certain, I'd hold off. I don't know how easy it would be to sell off a couple of tons of pellets if you don't have a method for delivery. (then again, if the prices keep going up, you could perhaps make a profit!! lol)

 

[cimbo190]

Pellets like stoves are a commodity. If you can store them or use them, you surely will be able to resell them, its just a question of when.

 

[jwirtz0127]

First place I went to look at stoves asked me if I had found pellets yet. So yep I found and ordered three tons before buying a stove.

 

[lmei007]

I have a feeling that the pellets price may go down a little after Fall. At that time most of those existing stove owners bought their pellets already and new owner is not a big number so the pellets suppy will be more than demand.

 

[clunk]

I agree. Its seems to me like the pellet supply is sparse because so many are buying their pellets so early. As people also seem to getting a season's supply, my guess is that by mid-winter if not well before then, pellets will be plentiful and the prices will go down.

 

[Xena]

I disagree. I think pellet prices will not go down.
We will see but I am very happy to have mine already,
especially when I just checked the current oil price
from my oil guy. 4.46 a gallon in the dead heat of
summer! :bug:

 

[lmei007]

pleae read the information from New England Wood Pellet founder, Steve Walker, on the current wood pellet supply and demand issues in the Northeast. (broken link removed to http://pelletheat.com/media/MessageToConsumers.pdf)
He said it will be good if 25% of user buy in Spring. but this year, at least 50% buy in Spring. So it make demand much bigger than supply and naturally the price will go up even if the oil price keep unchanges. that means the demand will drop dramatically after Fall. the result will be price go down. for those dealers or manufacturers, if they have a good Spring and Fall, they will have a "bad" Winter. They will NOT have a good time all year round.

 

[clunk]

His statement makes sense.