Why the $$$ spike in bio bricks this year?

[VanLandry]

Hi all,
1st year wood burner here and in Sept I purchased 3 tons of bio bricks at $280 per pallet. Oil was $4+ at the time so I thougth this was a very reasonable price. Well, being a 1st year burner I burned too much too soon and will be out in a couple weeks. I inquired at the same place I bought the 1st order and asked if they had any left and how much they cost. They stated they did have pallets of them available at a cost of $330 plus delivery. So, oil has dropped by more than 1/2 per gallon and bio bricks have raised in price $50 per pallet. This doesnt make sense to me as it just seems more cost effective to simply burn oil for the rest of the year.


So, my question is two-fold. Why would the price increase as the season goes on? Do they figure anyone who's buying now is desperate? Has it been a cold enough season thus far that they figure everone is running out of firewood?

And weather(sic) or not there is some point in the season where suppliers want to simply start dumping their stock before the season ends and then no one will want them at any price.


Thanks,
Van

 

[savageactor7]

Probably a supply/demand thing with a lot less chippers in operation there's a lot less available chips. When the demand for dimension/framing lumber cratered about 18 months ago a lot of the bi products dried up too. It'll recover down the road.

 

[Slow1]

I suspect it is simply supply and demand. The supply is likely down - your statement "asked if they had any left.." says a lot really doesn't it? I too would expect there is a good chance that this time of year supply of these products is reduced. Also demand may well be up a bit - you aren't the only one who underestimated their need.

Anyway - Even though oil prices fell and it doesn't really make good economic sense, I keep burning my stove too... it is an addiction. Thus, I don't think that the demand curve is really all that closely linked (i.e. Oil and BioBricks do not quickly and easily substitute for each other in the market so prices don't move together very well). From what I understand, the price on these bricks go up and down with the seasons each year - we are hitting the peak price time. Best time to buy is during the summer. At least as long as we still can burn wood and/or oil we don't have to be worried about getting gouged too badly.

 

[SaratogaJJ]

I bought Envi-blocks last spring - my supplier has a sliding scale, so that if you pay for them between April 1 and May 31, the cost per pallet is (or was, at that time) very reasonably low - only $209 per pallet, which is slightly less than a cord of seasoned hardwood around these parts. Then the price goes up $10 per pallet, per month, so if you pay for them after Labor Day, they cost $249 per pallet until March 31.

So I suspect that a lot of it has to do with your dealer, who knows that this should be right about the time that people start nervously eyeing their supply, and trying to wonder if they can get through the season with what they have left.

Metaphorically speaking, it's the same reason that you find lots of full-price air conditioners at Home Depot right around late June, and why you can get a great deal on that exact same air conditioner after Labor Day.

 

[VanLandry]

Thanks for responses, all. Both the supply/demand as well as the sliding scale sound logical to me. I really hate burning oil so I may have to burn both oil and perhaps get one more pallet of BB for the really cold nights. I believe there's another local supplier of smart logs so I'll check out their prices as well.