I saw this in the Bangor Maine newspaper and thought it may be of interest.
http://bangordailynews.com/2015/12/...ce-aroostook-county-pellet-maker-to-cut-back/
http://bangordailynews.com/2015/12/...ce-aroostook-county-pellet-maker-to-cut-back/
They're probably doing the right thing by cutting hours in order to get thru this slow year. Good luck to them.I saw this in the Bangor Maine newspaper and thought it may be of interest.
http://bangordailynews.com/2015/12/...ce-aroostook-county-pellet-maker-to-cut-back/
Triple whammy, oil prices crashed. For pellets to be competitive with fuel oil, they have to get down around $160 a ton, or the very least under $200. And there are millions of people with central heat that is oil fired right here in New England, even if it's not the norm up in the mountain states, it is at least among the norm down south and east. I can fill my oil tank for under $300 right now from about the 1/4 mark, why would I buy pellets for nearly $300 ? As a matter of fact, I can top off the oil tank here and there for about $150- $175. No, pellets right now are just a pretty looking flame in the living room that I don't always need going. Obviously I'm speaking of oil and NG, if people have higher cost central heat like propane or electric that is a different matter.They got hit with a double whammy. Popping for the 1/2 mil dollar expansion after the shortage in the same year they lost a customer that had been taking 15% of production. A little of what happened to Harman the year pellet stoves were flying out the door like hamburgers and they expanded big time and the next year it didn't get cold.
Just delivered oil monday for $1.38 gal, pellet stove sits still with ash from last yr...forgotten...good to place my beer or a tv remoteTriple whammy, oil prices crashed. For pellets to be competitive with fuel oil, they have to get down around $160 a ton, or the very least under $200. And there are millions of people with central heat that is oil fired right here in New England, even if it's not the norm up in the mountain states, it is at least among the norm down south and east. I can fill my oil tank for under $300 right now from about the 1/4 mark, why would I buy pellets for nearly $300 ? As a matter of fact, I can top off the oil tank here and there for about $150- $175. No, pellets right now are just a pretty looking flame in the living room that I don't always need going. Obviously I'm speaking of oil and NG, if people have higher cost central heat like propane or electric that is a different matter.
HD and crap pellets at that (right now) are $259 a ton minus delivery. Or fill my tank, oil delivered for around $200 if I pick the right point to call in the delivery.. And the independent dealers are getting even more for pellets around here. I'm envious of the guys who can go to a farm stand and get pellets for under $200 . That surely is not the case in New England, at least not SE. Ma. But these plants I'm sure know their low end, seems like they have to reduce production cost if they want to compete and sell product..
One Mainer I know very well said that he felt when everyone got hooked on pellets or at least enough people invested in stoves vs wood stoves then the prices would start climbing. His view being the captive audience theory more or less.Have Pellet mill suppliers (sawdust/wood scraps) finally caught up to the fact that they can increase there bottom line by increasing there prices?
Pushing cost of pellet production higher?
It took a while for this to happen with bio-diesel. Eventually the demand for veggie oil out weighed the cost savings of giving the stuff away. So they started charging and prices near me are constantly on the rise.
Can I get an Amen brother!!I was on HD's web site this AM and noticed they have marked down their crappy pellets to $239 a ton. They are advertising saving 8%. Whoppie! I hope the loss of demand gives these pellet suppliers and manufacturers a good reality check. IMHO I do not see any pellets really ever being worth more than $225 per ton.
Granted that's pricing here and not in the north east and major cities where prices increase on everything usually. I still could not justify paying for ANY pellet brand no matter how great at $275 to $300 or more. That is just not cost effective no matter how you cut it unless some day oil, gas, etc; go insanely higher. And if I still wanted a fire it would be cord wood for next to nothing vs. some over priced pellets.
My Harmans would be sold and if I could not get a decent price they'd be in my truck going to my friends fab shop to convert to wood burners some how. I'm sure it could be done with some modifications. Just my buck fifties worth and how I feel about greedy producers and sellers pricing themselves out of the game. Karma.
I also hope these manufacturers do not continue games and set fair prices each fall. The jacking up and price gouging just because it's a little colder some winters is a joke and rubs me the wrong way big time. I get businesses are in it to profit but there is a fine line between screwing consumers and being fair. I feel they were all trying to maximize profits last year and the last several really. My friend who has heated with pellets for 7 years now never paid more than $200 a ton until the last couple of years when suddenly pellet prices jump drastically all of the sudden. No reason to other than profits.
I think these producers and suppliers are getting a little pay back now as people are sick and tired of taking it in the rear on per ton prices and have opted out altogether heating with other sources and cheaper or easier for the same price even. Last year and by the pricing this fall these idiots thought they had everyone over the barrel. I hope they wake up and this forces them to play fair.
I get supply and demand but I can also see right thru BS. By the way they and others always love the excuse of gas prices went up so we had to jack our prices up too. Fine! However we never see them reduce prices since gas is so cheap now. Have they? I know that's not always the determining factor but they surely never hesitate to use it as another price increase excuse.
What I see as a nice part of the problem is that many others have realized Hey we can make some money at this pellet game and once they turn it into a for major profit business instead of a good way to get rid of waste etc and make a bit doing so it taints the market.
Pellets have gone from a means of getting rid of a waste product and turned into a big business. I have zero sympathy for these guys losing business nor shelling out $500K on a for now bad investment. Trust me they were not worried about that when they were rubbing their hands together and laughing about the high prices folks were paying. They can take their pity party and shove it as far up their butts as they can reach. I actually enjoyed reading about their big money plan that back fired. I hope pellets get back to the point to where they almost have to give them away in order to get rid of them.
And another point: I find it funny that a local school has chosen to buy from a farther away pellet producer. They went to another country. Maybe not real far way but obviously they switched for a reason. Probably spending less money so that alone prove these pity party fools are price gouging. How in the world can they buy from farther away and likely for less money than from a producer right in their own state. These morons priced themselves out of the game Hahahahaha! That's what they get and deserve.
Conversion kits, a couple of us have mentioned that here. No takers, reminds people of staring at their furnaces in the basement. But a wick, now we might have something ! Nice gentle flame, good sized wick in my p61 would take. I can see 50 to 60k btu happening that way. Certainly 40k.Wonder when someone will come up with a adaptor plate to add an oil gun to a pellet stove
I was on HD's web site this AM and noticed they have marked down their crappy pellets to $239 a ton. They are advertising saving 8%. Whoppie! I hope the loss of demand gives these pellet suppliers and manufacturers a good reality check. IMHO I do not see any pellets really ever being worth more than $225 per ton.
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TSC here has mostly their own brand, supposed to be Maine Woods ( = ashy but good heat).. They have another brand too, crappy, 7800 btu.My TSC has really crappy pellets with nothing but poor reviews everywhere. Fiber Energy or something like that. I looked them up and everyone said they are terrible in all ways. TSC has these priced at $259 a ton here. LOL! Got luck moving that saw dust bark bits.
All the TSC around here was selling for $215 a ton pre-buy and you had to pay but they would NOT tell you what they were getting.
Time will tell on the whole ball of wax. Hey, I could end up back on coal before it's done, at least it's easy to store being basically weather proof material..That thought has crossed my mined about the BBS and TSC places etc; getting stuck and then not buying more but that would also be a gamble on their part by not keeping supplies too. For instance if they don't order and then there is a cold winter with higher demand look at the money they would loose possibly. Tough call. Depending on how much places are stuck with and need to store also will determine sales this spring. I can see them holding onto some but commercial real estate is valuable and so is the business' storage areas. Many need to move out seasonal stock to make room for the next.
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And another point: I find it funny that a local school has chosen to buy from a farther away pellet producer. They went to another country. Maybe not real far way but obviously they switched for a reason. Probably spending less money so that alone prove these pity party fools are price gouging. How in the world can they buy from farther away and likely for less money than from a producer right in their own state. These morons priced themselves out of the game Hahahahaha! That's what they get and deserve.
I'm guessing you're talking about a division of the University of Maine that is buying from Canada instead of Northeast Pellets. Canada is right next door to Maine, geographically, kind of like buying from New Hampshire or Vermont. Anyhow, the likely reason is that the exchange rates between the US and Canada have changed quite a bit in the US' favor, so buying Canadian product is a lot cheaper than in years past. I'm just surprised we haven't seen local pellet retailers pricing their Canadian pellets lower. They should be buying them cheaper, and passing the savings on to the consumer.