You watch, they're gonna write it all off as a massive loss ! Why take a $100 per ton on the chin. That's where they need to be to even be close to fuel oil at this point, down around $150 a ton or even less really ( fuel oil here is at $1.42 a gal right now , today down from $1.49 a week ago). I doubt there is a $100 profit in a ton at how they bought last year. Nope write it off, get a big tax break.I think corporate stubbornness is at fault with some of the big box stores. Managers have told me they know the pellets are not priced right but it's falling on deaf ears at corporate.
That's good, out here in New England we aren't seeing those prices yet though.Local menards had American wood fibers or somersets for 4 bucks a bag or 200 a ton.if I had a place to store them I would buy all they had
That's good, out here in New England we aren't seeing those prices yet though.
If the product sits out in the weather long enough that's all it will be any good for, land fill or our big burner all the trash goes to up here. I don't think the pellet industry has advanced to the point of recycling broken down pellets just yet. Nobody expected this market as it is but rather keeping up with demand was the mind set, even leaving out the high cost factor, not product anchored to a parking lot ! Ya know / right now, today, I'm not sure I'd go buy tons of those pellets if they were $150 a ton. First, that barely competes with the oil price as it is today, never mind as it drops out some more. Secondly, these are getting to be old stock items, they aren't getting any fresher.Yeah they could dump it all rather than sell it at cost or a loss and have nothing next year.
The independents would love that exploitable market.
If the product sits out in the weather long enough that's all it will be any good for, land fill or our big burner all the trash goes to up here. I don't think the pellet industry has advanced to the point of recycling broken down pellets just yet. Nobody expected this market as it is but rather keeping up with demand was the mind set, even leaving out the high cost factor, not product anchored to a parking lot ! Ya know / right now, today, I'm not sure I'd go buy tons of those pellets if they were $150 a ton. First, that barely competes with the oil price as it is today, never mind as it drops out some more. Secondly, these are getting to be old stock items, they aren't getting any fresher.
Or to do. But they don't seem to be doing it, not where I've looked anyway. I'm sure they went into this expecting to have empty yards by now. Typically in another three or four weeks winter supplies and pellets start drying up as BBS change over for spring products. Hmmm.Finding the limited necessary information on how to successfully store pellets outside really isn't that difficult to find.
Pellets are $159/ton at our Home depot. Not great pellets, but the price is OK. My backup heat is propane, which is higher than oil, but it still may be a wash on cost per Btu. I burn the pellets because they put money into my local economy and use a renewable resource. Call me green...I haven't burned one bag this year. as far as I'm concerned its a no brainer ....pellets have to go under $200/ton to break even...then I gotta lug them around??? I got a plan for the spring to grab them cheap
We went up here yesterday to $1.46 from $1.42. It does that, then will drop $.10 in one whack. Gasoline is holding under $2, some locations $1.84.The cheapest oil I've seen near me is $1.40
Still $259 here.Pellets are $159/ton at our Home depot. Not great pellets, but the price is OK. My backup heat is propane, which is higher than oil, but it still may be a wash on cost per Btu. I burn the pellets because they put money into my local economy and use a renewable resource. Call me green...
Now that must be the earliest yet ! But hey it's only a couple of months till the first official day of Spring and look how early they pull all the Chinese Christmas crap and trinkets in.Box stores around here are already rolling in the mowers and outdoor canopies. Won't be seeing grass for two more months
Dropped to 1.76 and Fargo is now under 1.60Gasoline is holding under $2, some locations $1.84.
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