Pellet Hoarding

[squeed]

I'm down to the last 6 bags of my final ton, so I've been calling around Home Depot, Lowes, Agway, everyone is out and not getting any more in for this season. I lucked
out and found 3 bags at the Tractor Store. Not a huge score, but hey, 3 more days of heat isn't a bad thing. They guy there told me that he knows someone in PA that has an entire warehouse stacked floor to ceiling with them and he's holding on to them until the price goes up over $400 a ton and then he's going to start releasing them.

The tractor store also told me that their suppliers are jacking up the prices and they may need to go from $5.99 a bag to $8.99 a bag next season.

I'm starting to second guess my choice, maybe I should have put in a wood burning stove !

-S

 

[hawl]

Would there really be any demand for pellets at over $400/ton? For that price it would be cheaper for me to use my electric heat.

 

[ChandlerR]

Thanks to this forum, I called a guy who was selling 4 ton of Lignetics hardwood. Bought them for $225 a ton. Picked them up last weekend. I haven't looked at any of the stores near me but I haven't heard of any shortages.

Chandler

 

[ChandlerR]

Sorry...The guy had advertised on Craigslist.

Chandler

 

[Lousyweather]

I'm down to the last 6 bags of my final ton, so I've been calling around Home Depot, Lowes, Agway, everyone is out and not getting any more in for this season. I lucked
out and found 3 bags at the Tractor Store. Not a huge score, but hey, 3 more days of heat isn't a bad thing. They guy there told me that he knows someone in PA that has an entire warehouse stacked floor to ceiling with them and he's holding on to them until the price goes up over $400 a ton and then he's going to start releasing them.

The tractor store also told me that their suppliers are jacking up the prices and they may need to go from $5.99 a bag to $8.99 a bag next season.

I'm starting to second guess my choice, maybe I should have put in a wood burning stove !

-S

keep looking around......there are dealers who sell all year long........the outfits you mention arent stove shops......maybe try one of them......

 

[EatenByLimestone]

That inventory is going to cost him quite a bit of money to store. :LOL:

Matt

 

[Wet1]

That inventory is going to cost him quite a bit of money to store. :LOL:

Matt

No doubt, a real business tycoon. :roll:


And to the OP... yes, a wood stove would have possibly been a better idea.

 

[Dr_Drum]

. . . to the OP... yes, a wood stove would have possibly been a better idea.

No fair, hind sight is 20/20. :gulp: I also got burned on the pellet stove craze, a wood stove would have been better. Like oil, it's too easy for them to hold us hostage.
Mike -

 

[davevassar]

I know a guy who knows a guy that claims to know of a warehouse with 4 gazillion tons.

Don't believe the hype.

I'll say it again. There was a huge uptick in the number of pellet stoves sold last year. the pellet manufacturers know this, therefore the price of pellets went up. The more demand there is, the more the price goes up.

I would be very surprized to see prices for tons any lower than $250 ever again. Prices below this will be few and far between.

 

[Wet1]

. . . to the OP... yes, a wood stove would have possibly been a better idea.

No fair, hind sight is 20/20. :gulp: I also got burned on the pellet stove craze, a wood stove would have been better. Like oil, it's too easy for them to hold us hostage.
Mike -

Hindsight and experience. I say this as I've been a pellet burner now for 9 years and a wood burner for many more. Pellets use to be somewhat of a bargain, but since 2005 prices have been too volatile for my taste. I bought a 2nd pellet stove this last year (P38), but basically as a replacement to my other pellet stove that doesn't operate really well at very low feed rates. I'm planning on hanging on to my P38 for a while as it's nice to have during the shoulder seasons, but I don't know that I'll buy anymore pellets after I deplete my current 2.5 ton inventory. If you don't mind the extra work wood requires, it's generally warmer, quieter, and cheaper... and nicer to gather around as well. While I love my existing wood stove, I'm going to replace it with a larger cat stove that I can fill and walk away from once or twice a day (as I do with my pellet stoves), and smile knowing I'm not at anyone's mercy when it comes to fuel. In fact, I've managed to process about 10 to 15 cords of oak this winter, so I should be set for a long time to come...

But anyway, I don't recommend pellets to hardly anyone these days, unless they have no better option.

 

[JustWood]

. . . to the OP... yes, a wood stove would have possibly been a better idea.

No fair, hind sight is 20/20. :gulp: I also got burned on the pellet stove craze, a wood stove would have been better. Like oil, it's too easy for them to hold us hostage.
Mike -

Hindsight and experience. I say this as I've been a pellet burner now for 9 years and a wood burner for many more. Pellets use to be somewhat of a bargain, but since 2005 prices have been too volatile for my taste. I bought a 2nd pellet stove this last year (P38), but basically as a replacement to my other pellet stove that doesn't operate really well at very low feed rates. I'm planning on hanging on to my P38 for a while as it's nice to have during the shoulder seasons, but I don't know that I'll buy anymore pellets after I deplete my current 2.5 ton inventory. If you don't mind the extra work wood requires, it's generally warmer, quieter, and cheaper... and nicer to gather around as well. While I love my existing wood stove, I'm going to replace it with a larger cat stove that I can fill and walk away from once or twice a day (as I do with my pellet stoves), and smile knowing I'm not at anyone's mercy when it comes to fuel. In fact, I've managed to process about 10 to 15 cords of oak this winter, so I should be set for a long time to come...

But anyway, I don't recommend pellets to hardly anyone these days, unless they have no better option.

Alternatives to "wood" pellets are being developed and tested as I type although I think they are 3-5 years away yet.
I just read an article about a company that is taking methane off cow manure and using the dried mater left over to produce a pellet. It is still in testing stages and may be a while before it comes to market if it works.Switch grass ,corn and wheat stover, and other plant matter are all possibilities.
Anyone looking at buying a pellet stove should seriously consider a multi fuel stove or furnace that can burn other than wood pellets. Who knows someday soon you may be burnig "PooPellets" !

 

[jtakeman]

Alternatives to "wood" pellets are being developed and tested as I type although I think they are 3-5 years away yet.
I just read an article about a company that is taking methane off cow manure and using the dried mater left over to produce a pellet. It is still in testing stages and may be a while before it comes to market if it works.Switch grass ,corn and wheat stover, and other plant matter are all possibilities.
Anyone looking at buying a pellet stove should seriously consider a multi fuel stove or furnace that can burn other than wood pellets. Who knows someday soon you may be burnig "PooPellets" !

"POOPELLETS", I wounder how many peeps would shy away from that?

We have a Farmer in Caanan Ct that make Poo pots. Use to plant flowers and veggie's. Of coarse he removes the owe and goo first. He was featured on Dirty jobs a few years back. Start the plants and then plant the whole pot when going to the garden. Doesn't was anything. Heat the house and barns with the methane too!

If they sold them cheap enough and they burned with good heat. Heck they would be in my stove. Really wish they would start with the alternatives to pellets. I am keeping my eye out for what ever I can get. My local TSC sometimes sells cherry pits. Might see them in the fall again.

I have always said I would burn bunny poop if I had too! Just to much work involved.

jay

 

[sparkydog00]

I'm down to the last 6 bags of my final ton, so I've been calling around Home Depot, Lowes, Agway, everyone is out and not getting any more in for this season. I lucked
out and found 3 bags at the Tractor Store. Not a huge score, but hey, 3 more days of heat isn't a bad thing. They guy there told me that he knows someone in PA that has an entire warehouse stacked floor to ceiling with them and he's holding on to them until the price goes up over $400 a ton and then he's going to start releasing them.

The tractor store also told me that their suppliers are jacking up the prices and they may need to go from $5.99 a bag to $8.99 a bag next season.

I'm starting to second guess my choice, maybe I should have put in a wood burning stove !

-S

Don't believe any pellet rumours...especially coming from the big box stores!

 

[Dr_Drum]

. . . I don't recommend pellets to hardly anyone these days, unless they have no better option.

Ya, I knew better. I thought there was a good chance that the pellet manufacturers could really screw people hard after so many stoves were sold last year. But my neighbors got to me after really capitalizing on thier stoves when oil was over $4. My bad, live and learn.
Mike -

 

[Wet1]

Mike,

I'm sure pellets will continue to have good years and bad years. 2005 and 2008 were bad years, and it's starting to look like 2009 will be another bad year for pellets, which suggests to me that the volatility is increasing. Once things turn around with the economy, oil and other fuels will no doubt go back up, making today's high pellet prices at least a little easier to stomach.

Your best bet might be to find a wood stove (new or used) and start gathering some wood. This way when fuel is cheap you can continue to use your oil, pellets, etc, but when things start getting high you'll have the option of burning (nearly) free wood. Remember, it's always good to have options.

 

[Amaralluis]

You are forgetting that the prices we are being charged right now reflect the current price of oil.
Or does anyone think that once oil goes up pellets prices will remain the same??
Last year prices went up because oil was at $150/barrel but I dont recall the prices coming down with the drop of oil price.
Wait until it goes up again and we will start hearing the excuses that oil prices are going up and with it transportation costs, bla bla bla so theres no choice but to increase pellet prices.
Pellet industry starts to look like more and more like the oil industry.

 

[Lousyweather]

You are forgetting that the prices we are being charged right now reflect the current price of oil.
Or does anyone think that once oil goes up pellets prices will remain the same??
Last year prices went up because oil was at $150/barrel but I dont recall the prices coming down with the drop of oil price.
Wait until it goes up again and we will start hearing the excuses that oil prices are going up and with it transportation costs, bla bla bla so theres no choice but to increase pellet prices.
Pellet industry starts to look like more and more like the oil industry.

well, it IS an energy industry. I must point out though, that the price of pellets didnt triple, or even double, for that matter, like oil did. Did the pellet co's raise prices with the oil price, I'd agree with that one, but i'd estimate only on the order of 5% or so.......none of these pellet operations are not-for-profit, and they need to "make hay while the sun shines" as well......just like any other operation.

 

[JustWood]

You are forgetting that the prices we are being charged right now reflect the current price of oil.
Or does anyone think that once oil goes up pellets prices will remain the same??
Last year prices went up because oil was at $150/barrel but I dont recall the prices coming down with the drop of oil price.
Wait until it goes up again and we will start hearing the excuses that oil prices are going up and with it transportation costs, bla bla bla so theres no choice but to increase pellet prices.
Pellet industry starts to look like more and more like the oil industry.

well, it IS an energy industry. I must point out though, that the price of pellets didnt triple, or even double, for that matter, like oil did. Did the pellet co's raise prices with the oil price, I'd agree with that one, but i'd estimate only on the order of 5% or so.......none of these pellet operations are not-for-profit, and they need to "make hay while the sun shines" as well......just like any other operation.

I agree . Prices now reflect higher raw material costs and transportation costs to and from the mill.Some of you forget that green raw material cost are upwards of $100/ton in some places. Figure in the weight loss from drying and drying costs, raw material is probably $150+/ton.

 

[webbie]

I would be very surprized to see prices for tons any lower than $250 ever again. Prices below this will be few and far between.

Ah, prices below this are common in western PA, Ohio, the entire midwest and areas of the south which are within a couple hours of pellets plants.

$200 a ton or less is common.
Everything is a bit more expensive in crowded new england......where there is more demand due to extreme sales of pellet stoves.

Expect to see prices coming down as the weather warms. I suspect new englanders will be able to stock up at 210-225 if they play their cards right.

Oil is 1.79 right now here, so there is not much savings even at that price....but having a variety of options is always good.

 

[JustWood]

I would be very surprized to see prices for tons any lower than $250 ever again. Prices below this will be few and far between.

Ah, prices below this are common in western PA, Ohio, the entire midwest and areas of the south which are within a couple hours of pellets plants.

$200 a ton or less is common.
Everything is a bit more expensive in crowded new england......where there is more demand due to extreme sales of pellet stoves.

Expect to see prices coming down as the weather warms. I suspect new englanders will be able to stock up at 210-225 if they play their cards right.

Oil is 1.79 right now here, so there is not much savings even at that price....but having a variety of options is always good.

Prices that low WERE common in this area a year or more ago. $220 right now and climbing.
Earlier this week I made a deal with a pellet mill to start hauling waste wood in to their facility to feed their new grinder soon. I made the deal with the stipulation that if mills are shut down that no product wood be coming in. Kind of an open ended contract. I guess you could say I'm now in the biomass biz. The firewood biz is about KAPUT until logging resumes although I do have some inventory left for the next year or so. I have been talking agressively with pellet mills for the last year or so and with the decline in the lumber biz they are saying price and availabilty are not looking good .