Slow pellets sales in MT...What?

[crausch]

Here is a recent article about a company that has their own materials for pellets, but their pellet sales seem to be slow. Must be a surplus of pellets in MT or something. One thing I did notice (assuming the article is accurate) is that the stated moisture content looks a little high (12%). Might be why his sales are slow.

http://timberbuysell.com/Community/DisplayNews.asp?id=4196

 

[PelHeat Ltd]

Interesting article, it maybe that the current drop in oil prices is reducing demand for pellets in his area, as he states "But we have three-quarters of the customers we had a year ago". And its possible the moisture content is putting buyers off, however many people would be able to burn those pellets successfully.

 

[SmokeyTheBear]

Burn them probably, but getting any real heat from them is another thing entirely. I'd say if this was the case last year, one quarter of his customers got their pellets elsewhere this year.

Gee, what do you know, customers can vote with their feet, who'd a thunk that ;-) .

 

[slls]

He is putting tree trimming through a chipper, has to be bark in them pellets.

 

[SmokeyTheBear]

Ah, high ash and more than a little clinkering I'll wager, now that along with the moisture and it's a wonder that only 25% voted with their feet.