Anyone with a finger on the pulse of the pricing of pellets?

[Phoenix Hatchling]

Wait until spring, market is flooded. Some manufactures are giving dealers great deals now, not moving many pellets.

I "waited till spring" last year anticipating their spring buy pricing. What a joke that was, purchasing early saved a whopping $5 on the ton. That was after the grossly inflated price hike they put in place last year with the long cold winter. Those who have been burning for some time now feel the inflation rate even more so. Gone are the days of $150 per ton, with some brands topping out above a staggering $400 per ton. Seems greed has priced itself in with pellets, just as the oft maligned oil producers have done.

 

[Bioburner]

If the new compression ignition gas engine not needing urea system etc gets put into full production soon with it getting almost double the same size standard gas engine, the oil industry will really start to cry and more development of other friendlier organic fuels. If the prices were to stay up they would be developed faster.

 

[Tonyray]

I "waited till spring" last year anticipating their spring buy pricing. What a joke that was, purchasing early saved a whopping $5 on the ton. That was after the grossly inflated price hike they put in place last year with the long cold winter. Those who have been burning for some time now feel the inflation rate even more so. Gone are the days of $150 per ton, with some brands topping out above a staggering $400 per ton. Seems greed has priced itself in with pellets, just as the oft maligned oil producers have done.

I think the biggest ripoff was Home Depot with 269.00 ton for mostly sub par pellets...
[ now dropped down to 199.00 ton in philly area] the past couple weeks due to warm winter, low oil prices and lot of people refusing to pay the inflated prices... up 40.00 in 2 seasons.

 

[alternativeheat]

Tractor Supply around here has started dropping finally, they were $5.39 a bag all winter and they are $4.99 now. And they dropped the ton price from $259 to $209. Now we will see if HD moves, but TSC has way more stock. HD has been moving some most of the winter and TSC basically nothing. I'll be picking some up this week, it's supposed to be cold again as the week progresses. FWIW, TSC pellets are not quite as hot as FSU, nearly but not quite . They burn cleaner though but use more of them. At least the supply we have here which are said to be Maine Wood Products. I'd like to see HD drop a bit, I'd scoff up some FSU's, if not guess I'll get the TSC pellets. The P61 will burn either fine .

Right now burning oil. but oil went up here, it hit a bottom of $1.42, rose to $1,46 and hovered, now at $1.53. Still not bad.

 

[alternativeheat]

If the new compression ignition gas engine not needing urea system etc gets put into full production soon with it getting almost double the same size standard gas engine, the oil industry will really start to cry and more development of other friendlier organic fuels. If the prices were to stay up they would be developed faster.

Hyundai is looking to test drive their engine, from the article I read, soon. What ever that means !

 

[bogieb]

Tractor Supply around here has started dropping finally, they were $5.39 a bag all winter and they are $4.99 now. And they dropped the ton price from $259 to $209. Now we will see if HD moves, but TSC has way more stock. HD has been moving some most of the winter and TSC basically nothing. I'll be picking some up this week, it's supposed to be cold again as the week progresses. FWIW, TSC pellets are not quite as hot as FSU, nearly but not quite . They burn cleaner though but use more of them. At least the supply we have here which are said to be Maine Wood Products. I'd like to see HD drop a bit, I'd scoff up some FSU's, if not guess I'll get the TSC pellets. The P61 will burn either fine .

Right now burning oil. but oil went up here, it hit a bottom of $1.42, rose to $1,46 and hovered, now at $1.53. Still not bad.

Was at TSC today (don't go often even though they are in town) and they had graduated prices depending on the amount you buy - all were under $5/bag. And I believe the lowest was at 4.39/bag although I could be mis-remembering. However, I looked at what they had outside and I wasn't really interested. Looked like there was a good chance they had gotten a bit damp. I wasn't impressed with the stuff I got a couple of months ago anyway (MWP's by the code) . I suppose I should at least look at the code, but I'd have to see how their stock out back looks (none inside)

 

[alternativeheat]

That's my hesitation as well Bogie, TSC pellet stocks ( couple different renditions) have been sitting outside in the weather all winter. I don't mind the MWP coded pellets but they at least have to be whole, not swollen and breaking down ! I've gotten some good bags from them and some the other way too this winter already. I'd really not appreciate buying into a ton of crap regardless of the cost.

 

[slls]

Just paid 139.9 for oil, $5 a bag is a joke.

 

[rich2500]

Just paid 139.9 for oil, $5 a bag is a joke.

May be a joke to you but not everyone,I have oil and still prefer Pellet heat even if it does cost a few bucks more.

 

[P51mustang]

I just heard Lowe's has lowered their price to $199 a ton for their otherwise crappy pellets. Inferno Gold and Cheets.....Never burned either brand but have heard they both are not good pellets...

 

[Tonyray]

May be a joke to you but not everyone,I have oil and still prefer Pellet heat even if it does cost a few bucks more.

same here.....
like the steady heat of a pellet stove... have oil also.. use it just for hot water...Only used 91 gallons since August...
plus oil won't stay low forever...

 

[Dr.Faustus]

I just heard Lowe's has lowered their price to $199 a ton for their otherwise crappy pellets. Inferno Gold and Cheets.....Never burned either brand but have heard they both are not good pellets...

Lowes in wappinger falls dropped to 199 a ton, but they do not list the brand. I would not buy infernos from their rep on here. never tried them. never tried cheet's either.

 

[slls]

May be a joke to you but not everyone,I have oil and still prefer Pellet heat even if it does cost a few bucks more.

No way can a pellet stove beat a central heating system. Stoves were better than fireplaces. Then along came central heating with duct in each room, and cold air returns.

 

[Cedarjunki]

No way can a pellet stove beat a central heating system. Stoves were better than fireplaces. Then along came central heating with duct in each room, and cold air returns.

Hmmmm if i had a central heating system i just might be using oil. But im not going to invest a fortune to watch oil rise again either. I like the heat from pellet stoves. Does alot better than the forced air oil furnace i had. (HAD once upon a time) now its either pellet or electric.. guess what, pellets win.
Atleast i can say i am warm now.

 

[rich2500]

No way can a pellet stove beat a central heating system. Stoves were better than fireplaces. Then along came central heating with duct in each room, and cold air returns.

Sure can, got central oil heat and still prefer the warmth from the Pellet stove,totally different heat.

 

[Arti]

Menards locally are 240 a ton for not so good pellets.
Local Harman dealer at 280 ton for Heartland which I feel are excellent pellets.
20 Miles to a mom and pop hardware store that sells Marth or Propellets for 199 a ton both are very good to excellent pellets. I drive to the mom and pop store.

 

[Phoenix Hatchling]

same here.....
like the steady heat of a pellet stove... have oil also.. use it just for hot water...Only used 91 gallons since August...
plus oil won't stay low forever...

Then why not make hay when the sun shines and use oil while it's cheaper? Oil goes up...buy pellets...maybe. Plus the oil heat baseboards heat more evenly throughout the house. Not knocking your preference though, just can't understand it.

 

[Tonyray]

Then why not make hay when the sun shines and use oil while it's cheaper? Oil goes up...buy pellets...maybe. Plus the oil heat baseboards heat more evenly throughout the house. Not knocking your preference though, just can't understand it.

I guess the best explanation would be:
Joe A buys a brand new 20,000 mid size chevy to drive 50 miles round trip each day to work.
Joe B has the same trip but buys instead a 60,000 Lincoln when the cheaper chevy would get him back/forth same as Joe A.
it just comes down to Preference and if you can afford To pay a bit more for that Preference Then there really isn't anything to deceifer about it....
lot of people here prefer the stoves knowing full well oil may be cheaper to use..[This Year]...

 

[JustWood]

UK and Europe demand for american biomass is going to pressure biomass product price up here.
Their planned biomass use and extraction from American forests will reach 20,000 metric tons by 2020, up from 5,000 metric tons just 5 years ago.

Prices will trend up. Any time demand pressures a resource this happens. A warm Winter might find some retailers clearing out excess inventory but this is an anomaly not a trend. Just like the current price of oil is an anomaly. Take advantage of it while and if you can.

http://biomassmagazine.com/articles...od-pellet-exports-to-europe-double-in-2-years
Your figures are "slightly" off.
$650,000,000/4.7 million tons = $138/ton
$200-$350/ton does not compete with $138/ton

 

[billb3]

http://biomassmagazine.com/articles...od-pellet-exports-to-europe-double-in-2-years
Your figures are "slightly" off.
$650,000,000/4.7 million tons = $138/ton
$200-$350/ton does not compete with $138/ton

Of course it can't "compete". It's apples and oranges. They are both fruit though.
$200-$350/ton for premium pellets is not $138 for non-premium pellets at bulk pricing.
Premium pellets is a rather small percentage of the biomass product range.

 

[billb3]

Never fear, big government is here to help out. The POTUS plans to put a $10. a barrel tax on oil. That tax will probably stay forever unless added to. Don't throw away your pellet stoves !!

Isn't it great how "tax the rich because they can afford it " is working out ?

 

[JustWood]

Of course it can't "compete". It's apples and oranges. They are both fruit though.
$200-$350/ton for premium pellets is not $138 for non-premium pellets at bulk pricing.
Premium pellets is a rather small percentage of the biomass product range.

Your missing the point . At $200/ton retail, pellets are close to break even for production costs to end market. They will never be filtered into the export market at less than production costs. A mill will mothball first or bankrupt worse case scenario.
I think as the stove industry and technology advances there will be more stoves on the market that will burn a less than desirable (cheaper to produce) pellet.
If oil stays low for 2-3 years like they are talking then I believe youll see a big shakeout in pellet mills. At that point the big boys pickup the little ones and gain more control over the market = higher prices.
I personally would like to see stove manufacturers step up and develop a stove that will burn anything you throw at it 3/8"minus with a low moisture content.
Commercially they've done it with chips and sized boiler fuel. Why not pellet stoves?

 

[pete7713]

Never fear, big government is here to help out. The POTUS plans to put a $10. a barrel tax on oil. That tax will probably stay forever unless added to. Don't throw away your pellet stoves !!

Republicans in charge of Congress -- which decides whether, and how, to act on Obama’s budget blueprint -- have already declared his proposed oil fee "dead on arrival." And it has been angrily denounced by oil industry leaders, who say the fee would be passed on to consumers, hitting poor and middle-income families especially hard.

 

[lagger]

Lowes in wappinger falls dropped to 199 a ton, but they do not list the brand. I would not buy infernos from their rep on here. never tried them. never tried cheet's either.

lowes middletown has tiber heats and clean energy for 3.98 a bag 199 a ton CE's are Hamer's

 

[billb3]

Your missing the point . At $200/ton retail, pellets are close to break even for production costs to end market. They will never be filtered into the export market at less than production costs. A mill will mothball first or bankrupt worse case scenario.
I think as the stove industry and technology advances there will be more stoves on the market that will burn a less than desirable (cheaper to produce) pellet.
If oil stays low for 2-3 years like they are talking then I believe youll see a big shakeout in pellet mills. At that point the big boys pickup the little ones and gain more control over the market = higher prices.
I personally would like to see stove manufacturers step up and develop a stove that will burn anything you throw at it 3/8"minus with a low moisture content.
Commercially they've done it with chips and sized boiler fuel. Why not pellet stoves?

I'm not missing my point at all.