I Think pellet prices may be going down.

[nailed_nailer]

I was at Walmart in West Wareham Massachusetts yesterday. Wareham is down by Cape Cod.

The had about 20 tons of Pennington Natures Heat in dry covered storage in the garden atrium.
They had them marked at $289.00 a ton.

I was there about a month ago and they had 2 tons on the floor marked at $299.00 a ton.

$10 off a ton isn't much, but it is lower. Perhaps the big box stores are starting to see an oversupply.

BYW: They had the pallets double stacked. Not sure how that works as they were not in a rack.
Just one pallet sitting on top of the pellet bags of the pallet below. Probably not safe or good for the bottom pellets.

---Nailer---

 

[bungalobob]

We can only hope they keep coming down. Doesn't sound good with the stacking of the pallets though. Gotta hope you get the top ones first, the top row of the bottom pallet is likely to get all tore up.

 

[trogers]

I spoke with a guy in town that got four truckloads delivered the other day and they are $2.69. Prices are bound to start going down as many of the summer and early fall orders are being filled.

 

[trogers]

I spoke with a guy in town that got four truckloads delivered the other day and they are $2.69. Prices are bound to start going down as many of the summer and early fall orders are being filled.

I meant $269.00 per ton.

 

[Shortstuff]

My guess is that due to the overwhelming demand for pellets over the past few months that most of the mills were working and paying their employees overtime to keep up with the demand which means more cost to them up front. A lot of the pellets still in stock were transported when the cost of diesel was rediculous meaning higher freight charges, higher cost to the distributors and stores. We are still seeing these increased costs in our markets, but those supplies are now going to be refreshed with lower costing pellets which will cause prices to gradually drop. Also because fuel oil prices have dropped so much, the demand for pellets is going to drop faster than expected.

I'm guessing that by January or so I'll be needing another ton or two and by then I think prices will be what they were when I first purchased my pellets back in June - $244.00 per ton or somewhere thereabouts.

Steve

 

[Jester]

They do seem to be falling. Walmart has the penningtons plentiful for 5.75 a bag, sams club a mile up the road I think was 5.89 for the same thing.
I just cancelled a ton I had reserved, the guy upped the price to 349 a ton, cash and carry from 325.

 

[peakbagger]

THey are bound to go down as a lot of the cost of a wood pellet is the diesel to haul the wood and sawdust into the plant and the diesel to deliver the pellets.

 

[firewarrior820]

250.00 a ton at mardens in lewiston , they have lots of them,spruce point pellets

 

[Steve NH]

Keene NH area - 2 weeks ago Home Depot unloaded a truckload at 299.00/ton
Today I saw a place in Winchester NH (P-Squares) selling them at 280.00 /ton - currently have about 3/4 trailer load in stock
Looks like a downward trend.

Still I'm going to wait until atleast 250.00 ton before I get any more.
and even then I may only get 2 tons to add to my existing 1 ton. - No I am not a "Pellet-Pig" wanna be.

 

[Lobstah]

"A lot of the pellets still in stock were transported when the cost of diesel was rediculous meaning higher freight charges, higher cost to the distributors and stores"

Call me a skeptic, but I'm not buying that reasoning. Lets say they truck them 400miles?...and the truck is getting 4mi/gal? And diesel was at $4?...so $800 fuel charge, round trip, compared to maybe $500 fuel charge before? So an extra $300 bucks a truck load. How many tons on a truck?...

This is simple supply and demand, plain and simple, just like oil. Price of fuel oil is down to $2.35ish?...with pellets at $350/ton, it's almost cheaper to burn oil. Not sure what the exact cutoff is, but that's probably getting close.

Jim

 

[sydney1963]

Keene NH area - 2 weeks ago Home Depot unloaded a truckload at 299.00/ton
Today I saw a place in Winchester NH (P-Squares) selling them at 280.00 /ton - currently have about 3/4 trailer load in stock
Looks like a downward trend.

Still I'm going to wait until atleast 250.00 ton before I get any more.
and even then I may only get 2 tons to add to my existing 1 ton. - No I am not a "Pellet-Pig" wanna be.

Steve, see You Know Your a Pellet Pig When on this forum. That will help you decide whether you are a wanna be.

 

[tinkabranc]

Still I'm going to wait until atleast 250.00 ton before I get any more.
and even then I may only get 2 tons to add to my existing 1 ton. - No I am not a "Pellet-Pig" wanna be.

And why not? What are you trying to say?
You are too good to be a pellet pig?.....jk ;-)

 

[johnnywarm]

if its a warm winter i see pellets at 200 to 220 soon.

 

[sydney1963]

I hear it's going to be cold and snowy. Farmer's Almanac.

 

[Lobstah]

I'm going with cold and snowy. Solar Cycle 24, which was supposed to start about 9mos ago still hasn't really kicked off, and that's one of the factors that the Farmer's Almanac uses in their forecast model. There are other factors as well...things like the PDO shifting to a cold period, which usually lasts about 20-30yrs, btw.

Lob

 

[DiggerJim]

I'm going with cold and snowy. Solar Cycle 24, which was supposed to start about 9mos ago still hasn't really kicked off, and that's one of the factors that the Farmer's Almanac uses in their forecast model. There are other factors as well...things like the PDO shifting to a cold period, which usually lasts about 20-30yrs, btw.

Lob

Can't be. Al Gore swears it's getting warmer. There was even a movie.

 

[sfd2122]

A couple of friends and I got together and ordered 15 skids direct from a manufacture in the area. We went there this week to pick them up after waiting about 2 months for him to fill the order. He said his main reason for the price increase was not demand or even fuel cost. His problem is because building is way down, he is having a real hard time finding wood to buy to make into pellets and that is why his price went up. He told us if we could find him pallet makers, lumber yards ect. that would be willing to sell him wood he could fill our order faster. Just my 2 cents.

 

[lucky13]

4.79 a bag here in Northern Indiana. I don't see what the big deal is. Plenty available.

 

[itworks]

If they don't come down significantly, I think the pellet industry will suffer.

 

[imacman]

I'm going with cold and snowy. Solar Cycle 24, which was supposed to start about 9mos ago still hasn't really kicked off, and that's one of the factors that the Farmer's Almanac uses in their forecast model. There are other factors as well...things like the PDO shifting to a cold period, which usually lasts about 20-30yrs, btw.

Lob

Can't be. Al Gore swears it's getting warmer. There was even a movie.

That's right...if Al Gore made a movie that says it's getting warmer, then it's got to be true...everything in the movies is true. :roll:

 

[Xena]

4.79 a bag here in Northern Indiana.
I don't see what the big deal is. Plenty available.

You don't see the big deal because you're not in the Northeast.
Availability and prices for pellets suck here right now.

 

[imacman]

4.79 a bag here in Northern Indiana.
I don't see what the big deal is. Plenty available.

You don't see the big deal because you're not in the Northeast.
Availability and prices for pellets suck here right now.

Yeah, what she said!

 

[ablejoy]

Pellets at Wal-Mart are not selling price is $1.70 a bag higher than Costco and Home Depot they will start dropping price to unload them. Ours are double stacked no extra room and the top bags get crushed on bottom pallet.

 

[donkarlos]

wierd because on Cape Cod the sellers claim there is a shortage, restricting the amount they'll sell you per month or not at all unless you bought a stove from them. even heard of $350 per ton. yet wareham has em.

 

[nailed_nailer]

DonKarlos,

I think the pellet shortage on Cape Cod has more to due with the Bridge Toll than undersupply. You know...that same toll we pay at the grocery stores for meat, milk, and produce. The toll must help out the retailers with the cost of living way out here over the bridge, off the mainland

I had to shop around a bit to get 2 tons early in the season. I ended up getting 1 ton of Green Supreme from Ash A Way in Dartmouth for $309. And another ton of Energexe's from my local Aubachon for $314. Those prices are up about 30% from last year.

Cape Cod Stoves seem to still have a shortage of supply based on their website. Which sucks as they are the closest retailer for me. Their prices have never been the best but they are local and friendly to deal with.
Pondscapes in Cataumet has ridiculous prices. Almost $100 more than anyone else per ton. Guess they are planning on a higher level of customer with a more discerning taste in pellet fuel.
A new place in Truro pops up with a search. Cape Cod Wood Pellets Don't know their deal.

Pellets seem to be becoming more available. Hopefully the prices will fall to reflect the heating fuel market. Oil locally is down to ~$2.50 a gallon. Pellets won't move much if oil goes much lower.

---Nailer---