Are prices starting to break

Spoken like a true pellet pig

 

Looks like the current prices are squeezing out the middle man or at least this one. I have seen a recent logging job that supports the assertion of your wife's cousin. There wasn't a stick left on the lot as they were dragging whole trees out and processing at the landing.. Of course the pulp from this job may have been sold before oil prices crashed and our Florida like winter..

Pricing

 

Same as the stuff that rhymes with corn!! Hot Hot Hot!

 

must only ship to Europe?Louisiana Wood Pellet Maker Enters Bankruptcy Protection

 

Hope so, it is the end of February and its been 50 degrees all winter

 

You are correct. It is NOT free. Raw material costs have been in the $30-$80/ton range for a long time. I've seen as high as $120 for a short period about 10 years ago. I was in the supply end of the business pretty heavy in the late 90's and have dabbled on/off since. I always had open contracts and constantly fighting with other haulers for product and over price increases. The pellet mills kinda cut their own throats puffing the price up so fast just to get more market share and the sawmills cut their own throats holding material suppliers and non pellet material users (farmers) hostage bidding their own product to higher prices. They are gonna choke on it now. I just talked to another supplier 150 miles south of me Saturday and he said there are mills calling, begging him to haul material out because they are jammed up and its slowing lumber production.This will drop pellet prices if the pellet mills realize whats going on. Not a lot of $/ton but it will drop the price.
My personal opinion is prices will float around at low 2's for this year. You may see lower but not much unless oil drops considerably more. As mentioned in another post the cost of everything rarely comes down after increases. Enjoy the savings as I can testify that even though fuel costs are down transportation costs are always increasing (thank regulation) .

 

A lot depends on your geographical location..
The Northeast gets hammered with shipping charges.
All of our stuff comes from Canada, most from BC..
Can you get any farther away?


Dan

 

East coast anything is higher than a kite. 180 degrees of your geographical supply area only supplies seafood.
Edit to my post: " except some metro coastal pricing"
No.

 

It is beyond understanding why New England would need to source wood pellets from Canada or anyplace else.

There is certainly a plentiful supply of wood. There is an economic crater (at least around me) due to paper production be far less than several year ago. My sense is that the building industry has been effectively flat for a few years. There should be decreasing or at best flat pricing pressure on the raw material.

Is it regulation ??? NAMBY ???

 

I will say I don't " Mind " $220's $240 ballpark. My gripe for last 8 months was seeing opening prices of 250+, going UP EVERY month $5-10 and even average pellets in the $280's, while traditional fuels DROPPED, and the weather was warm baby warm. Then getting the " SALE " emails for the pellets priced at $325-345, and selling at 300-310 saying how special pricing was, wont last long.

 

Pellet production from low grade logs is VERY high in cost. Those are the mills that will prolly drop out of the equation first.
Raw material like dust from lumber production already is seeing downward pressure .
20 years ago there were places giving away dust or paying to get rid of it.

 

There are pellet mills in ME and NH. NH mills (NEWPs) price themselves out of the market for their middling pellets (FSU's from Canada, sold at HD, are cheaper and better than NEWPs made literally 17 miles from my house and sold at local farm and garden centers).

ME mills, looks like they are idling at this point - probably again due to perceived value. I know I'm not overly impressed with MWP's, sold thru TSC (and other places). Once again, for a lower price, I can get better - or at least not worse.

 

I remember when NEWP ( Jaffrey NH), DRY CREEK ( New York) were local, and GREAT. Now they are sub par to average, and priced as Premium. They really ruined themselves in my opinion, mostly from low quality high cost. VERMONTS were very good, just expensive, and really havt seen them this year. Why ???

I do like the Maine Woods, especially when pre season was under 250.

 

Dry creek was a good pellet till they were bought out or merged with PA pellet. Cant remember the scenario. I was at PA pellet many times and their operation/process was inadequate to make a premium pellet but they made a chit load of raw material with their own equipment/staff and I mean a chit load. Dry creek was starving at the time for raw material and they were close geographically which made the transaction work.
Like I've said before ,,,, I would like to see or hope the stove manufacturers brew up a stove that burned less than desirable/cheap pellets effectively/efficiently . There is plenty of cheap fuel out there to be had.
I may even join the pellet pig club if they do.

 

There is one place in Concord, NH that is selling Vermont's that I am aware of. At $7/bag, I'm not biting.

 

You can but Douglas fir cheaper !!

 

The multi fuel stoves should handle them. I really wanted a Harman PC-45, but they stopped making them.

 

I have about 139 years worth of close to free pre processed firewood ,,,,if I don't sell any. My setup only requires me physically handling wood twice. Once from the pile out back into the wood room and once from the woodroom into the stove. Only a little more work than pellets. I have it easy otherwise I'd be on the pellet wagon.

 

Yeah... processers are pretty nice.
But for most of us regular folk...
the chain saw, small splitter, or worse, maul, operation gets as old as we do!
Pretty nice opening a bag and dumping in your fuel...


Dan