Pellet prices already rising due to tariffs?

Saw this in the Pellet Stove sub-Reddit, he didn't name the supplier or what brand of pellets :

"I just ordered 2 tons of wood pellets here in NH and was notified by our supplier the pellets will be 10 to 25% higher because of the possible tariff. They expect domestic pellets to rise in price because the price of domestic pellets was kept low due to the competition of the Canadian pellets."


Sam

 

This is just an excuse to raise prices to see if they can get it! You pay tariffs when you import certain items; when you pick up the products at port. Many companies won’t ship and pre pay tariff for you so they don’t get delay fees.

So any business will delay order especially with a seasonal product like pellets

 

The US exports 9+ million tons of pellets per year while Canada exports 3+ million tons, both mostly to Europe, i.e. lots of pellet supplies in both countries. If your area is supplied from Canada to reduce shipping cost, then tariffs would have an effect. Otherwise, it sounds like a cheat. I know some gasoline and diesel is supplied to New England from Canada to reduce shipping. An example of shipping differences, our Midwest propane price is typically around $2 per gallon versus $3 per gallon in parts of New England while the US is the worlds largest propane exporter (partly due to Canadian crude exports to the US). I am a "numbers" person: the cute part is the US has a trade surplus with Canada and can see the Canadians being really unhappy over tariffs. The Australians got hit by China a few years ago and then got smart and took their business elsewhere. Canada needs to do the same...

 

Didn’t you put in an efficient Buderus?

 

I ordered 7 tons instead of 6 this year.
Delivery early April, and the supplier will have the normal "Spring pricing" on at least the local product.

Did get an email regarding the tariff stuff, and how they had been stocking up in anticipation.

I expect a price drop of $20 a ton, for $319 for what i'm getting.

Did drive to Bangor Yesterday, and saw a semi loaded with brand-new large propane tanks, lettered for one business.
Assuming made in Canada and the company down here is buying ahead.

 

I agree. I burned HD pellets thus year bought on a 10% off sale, $269 a ton. Only one ton, in basement, maunly for the family room. Comparable from dealers were $375 0r higher. My worst natural gas Bill for water and heat was $200. So Gas was 30-50% cheaper than burning pellets.

 

Never saw any sales this year (last year "sales" were something like $20 off per ton at HD - which is the only place that has sales). Or, maybe I just never looked because they posted my road early and I can't get deliveries now without going thru a lot of paperwork with the town until frost is out of the ground.

Looking it up today, seems that they are still at $300/ton - which is what they were last fall. I actually paid more spring of 2024.

If the temps keep up as they have been, the roads weight limits might be lifted early and I could get a delivery of a couple of tons to fill up my stash (I'll have 3 tons left - maybe more). Maybe I shouldn't have used my 10% off coupon last week - that would have paid for delivery.