Pellet Supply Redux

[lime4x4]

very true harryback.With coal in my area anyway it's the same price in the spring,summer,fall or winter and living in a coal region has advantages never running out of coal...Atleast i hope not...lol
i got 2 tons of pellets in the summer for 145 a ton. I like using the pellet stove early fall and late spring since i went to coal.Now if u can find pellets in my area there 150 for 1/2 ton plus alot of places that carry pellets said that once they get the Jan delivery there not getting anymore till late summer or earlier fall.they only bought so much didn't think everyone would be going to pellet stoves.the local hardware owner told me for the last 3 years he has ordered 200 ton for the heating season.this year he sold 200 ton in 1 week his entire order for the year was gone.he was able to get another 30 ton but there already spoken for and he was told don't expect anymore this heating season

 

[HarryBack]

Most of my suppliers have allocations, based upon what you bought last year. Ive used up my allocation of Allagheny Pellets, just got my last truck today. Got 2 more trucks of New England coming, dont know when. Used up my Cubex allocation. Still waiting on more of my Industrial Pellets that I took a position on, but they are late. Ordered a railcar of Pinnacle Pellets in early December, its supposed to be in February...if it is, itll be 1-1/2 months late. The last truck of Allegheny Pellets I sold...23 tons....sold in a day and a half. We retailed those pellets at $239.00/ton, limiting folks to 1 ton per household. Ive been told by the wholesalers now that they may not do any early buy pricing, but rather price it per year....ouch! Ive also heard that the pellet companies arent opening up any new accounts, preferring to support their historical ones, or the ones who actually sell stoves....dont know what that would spell for the local hardware store tho. I imagine there would be a double standard tho....Walmart and Lowes dont sell pellet stoves, but sell pellets.

 

[hearthtools]

I will say this again and again the big price increase on pellets are not from the Mills it is from the cost of trucking or rail.
Im am paying $10 more now than I did last year for the pellets. the cost of shipping is why I had to raise my price from $200 ton to $245 a ton and im making $5 less per ton.

For the remark for the truck passing up all the other USA mills to come down from Canada. I have bought from all the western US Pellet mills and in the past 16 years of selling pellets Pinicle is the only mill that get the fuel to me when I want (TIME AND DAY) and I have never been short due to them not getting me fuel only for my own mistake of not ordering enough. I only buy the Fir so the quality is AWLAYS good also.

 

[roac]

Harryback,

Lowes sells Englander pellet stoves. Not selling to the Walmarts/ Big chain stores makes no sense. You couldn't handle their pellet customers. This "pellet shortage" seems to be limited to the northeast/east. Plenty of pellets here in the mountain west. The only ways to end the shortages is to not sell any more pellet stoves or make more pellets. Since the first will never happen then of course making more pellets makes the most sense. No matter when you order pellets it will cause the same shortage. Your advice to order early, although wise will probably cause a severe pellet shortage in your region earlier in the year, no way to avoid a shortage except by making more or burning less.

 

[roac]

I will say this again and again the big price increase on pellets are not from the Mills it is from the cost of trucking or rail.
Im am paying $10 more now than I did last year for the pellets. the cost of shipping is why I had to raise my price from $200 ton to $245 a ton and im making $5 less per ton.

For the remark for the truck passing up all the other USA mills to come down from Canada. I have bought from all the western US Pellet mills and in the past 16 years of selling pellets Pinicle is the only mill that get the fuel to me when I want (TIME AND DAY) and I have never been short due to them not getting me fuel only for my own mistake of not ordering enough. I only buy the Fir so the quality is AWLAYS good also.

Maybe the pellet makers haven't been able to take advantage due to contracts but I assure you next year you will pay for this year. They need to expand production and to do this it will take $. So get ready to raise your prices again. Sorry to hear about your problems with US makers but you have to stick with what works for you. I've heard the douglas fir is best for pellets.

 

[HarryBack]

Harryback,

Lowes sells Englander pellet stoves. Not selling to the Walmarts/ Big chain stores makes no sense. You couldn't handle their pellet customers. This "pellet shortage" seems to be limited to the northeast/east. Plenty of pellets here in the mountain west. The only ways to end the shortages is to not sell any more pellet stoves or make more pellets. Since the first will never happen then of course making more pellets makes the most sense. No matter when you order pellets it will cause the same shortage. Your advice to order early, although wise will probably cause a severe pellet shortage in your region earlier in the year, no way to avoid a shortage except by making more or burning less.

Why couldnt I "handle their customers"? Id be willing to bet I sell MORE pellets than every HD, LOWES, and WallieMart within 20 miles radius COMBINED. Unless you mean I dont WANT their customers. Wrong again.......I want them ALL. Maybe i wont be able to sell them a subpar unit which is cheap, since I dont cater to the sub1500 dollar stove market....thats certainly true. As for lots of western pellets....Ive been trying to get a railcar here for 2 months.....and I personally would rather see a shortage in summer, when folks arent freezing, than in the dead of winter, when they surely are. ;-P

 

[roac]

Harryback,

Not doubting your abilities but I think you way underestimate their volume. You could call yourself Pelletmart though. :lol:

 

[DavidV]

We are planning some renovations and an addition to our home in the next year or so. Wife was jazzed about putting a pellet stove in the addition since the hopper could be loaded ahead of time and the stove turned on by thermestat. Not gona do it now. Just too expensive. I guess I'll be stowing more wood that I currently am....such is life. I might look into a masonry heater type system.

 

[zogboy]

Most of my suppliers have allocations, based upon what you bought last year. Ive used up my allocation of Allagheny Pellets, just got my last truck today. Got 2 more trucks of New England coming, dont know when. Used up my Cubex allocation. Still waiting on more of my Industrial Pellets that I took a position on, but they are late. Ordered a railcar of Pinnacle Pellets in early December, its supposed to be in February...if it is, itll be 1-1/2 months late. The last truck of Allegheny Pellets I sold...23 tons....sold in a day and a half. We retailed those pellets at $239.00/ton, limiting folks to 1 ton per household. Ive been told by the wholesalers now that they may not do any early buy pricing, but rather price it per year....ouch! Ive also heard that the pellet companies arent opening up any new accounts, preferring to support their historical ones, or the ones who actually sell stoves....dont know what that would spell for the local hardware store tho. I imagine there would be a double standard tho....Walmart and Lowes dont sell pellet stoves, but sell pellets.

Lowes sells the stoves and I have seen them at wally's outdoor department.
I have seen several outlets in this area with large signs taking next years orders now. The best one was
$125 a ton for 5 or more tons.
I don't believe there will be a shortage next year or a major price increase.
I do believe there will be nutbags that won't order until it is cold and they will be caught short, once again they will be paying the price.

 

[HarryBack]

Harryback,

Not doubting your abilities but I think you way underestimate their volume. You could call yourself Pelletmart though. :lol:

Not here, I dont....they stop selling pellets in february here, dont restock till Spetember. And then they only sell roughly a truck per week, less when theres a crunch. I sell pellets all year long, approaching 4000 tons this year....more if I could get more.....lol...Pelletmart? Wish I could get bulk pellets!

 

[pelletheat]

One thing not mentioned in this thread about the ongoing pellet problem in the east, the pellet manufactures in NE USA & eastern Canada have always manufacured pellets to be shipped to Europe. Europe has been ahead of the US in using alternative fuels for heating, some areas already use bulk pellet delivery to conumers. Bulk trucks blow pellets into large underground tanks, similar to how we have oil delivered to our homes in the northeast.
Unfortunately, the pellet manufacturers were already locked to contracts for export to Europe for 05. Hopefully next heating season more pellets will be allocated for sale in North America.
:-S

 

[jsparkz]

Pellet supply in Michigan or at least aroung Grand rapids is pretty tight. Big name chain home improvment stores still seem to have the best intermittent supply at reasonable prices. I called one small town hardware store in the area and they wanted $6.99 A BAG. With a limit of 15 bags. Like others have said propane becomes way cheaper for me at that point.

 

[zogboy]

Harryback,

Not doubting your abilities but I think you way underestimate their volume. You could call yourself Pelletmart though. :lol:

Not here, I dont....they stop selling pellets in february here, dont restock till Spetember. And then they only sell roughly a truck per week, less when theres a crunch. I sell pellets all year long, approaching 4000 tons this year....more if I could get more.....lol...Pelletmart? Wish I could get bulk pellets!

Its the same all over with those stores, they sell by historic standards.
They may have more this year due to demand but they will not over order by any means.
Even with the demand pellets , corn , and coal are a tiny part of the heat market.
Pllus the employees of these stores do get dibs on the pellets so looking there is pretty fruitless.