Somebody is making some good money on pellets

[davevassar]

I didn't post this to point out that they were price gouging, I wast just saying that I found it funny that they were selling them for $7.10, and just up the road, HD is selling them for $5.49. I did notice though, that the HD right across the street, that usually has them as well, does not have them.

 

[bungalobob]

One thing I have learned is that not a whole lot of posts stay on track.

 

[Ductape]

Was just reading this this morning. Who knows the future, but if this comes true HHO should be around 80 cents/ gal. The pellet manufacturers aren't going to be able to compete with heating our homes @ 80c........ especially not with what they are charging for pellets today.


(broken link removed to http://www.foxnews.com/story/0,2933,462284,00.html)

 

[JustWood]

"Crude oil prices may crash below $25 a barrel next year and gas prices could fall below $1 a gallon if the global recession spreads to China, an energy analyst and CEO said Thursday."


Key words are "may" and "if". 100% speculation in this sentence.

 

[SmokeyTheBear]

' if the global recession spreads to China, an energy analyst and CEO said Thursday.” '

It already has.

 

[davevassar]

the problem with speculation is that it is speculation. I could say that HHO is going to drop below $1.50 per gallon in the next 4 months, but who the hell am I?

 

[SmokeyTheBear]

Nymex Heating Oil Future 147.11 cents as of 11:09

 

[Scoop]

At $7.10 a bag they should come with a free jar of vaseline. The same pellets my neighbour paid $200.00 a ton for I paid $260.00 a month later and they are now available for $340.00, this ceases to be supply/ demand with increases like this overa 3 month period.

Im probably not far from you. I paid $250 a ton for my first ton and recently paid $300 for another ton. Local feed mill says they are hard to come by. As quickly as they come in they are snapped up. Most people on here stock up in the spring. We'll have to see how that works this year with all the new burners.

 

[Sawduster]

How many tons I buy next year will totally depend on the price of HHO. If I can lock in at $2.00 gal. in June, I'll only buy one ton of pellets. If I can't, I'm going to buy six tons of pellets if I can get them at what I bought them for this year - $205/ton.

 

[Lobstah]

I've said many times that about the only advantage a woodstove has over a pellet stove is that I don't have any "pellet trees" on my property...so I have to buy my fuel, period. With wood, my cost could be pure sweat, if I chose to cut/split/stack my own wood.

If HHO is down to $1.50/gal?...pellets would have to go to what?...something around $125/ton for them to be on par with oil? And how many new plants/machines are being brought online this winter? A different post referenced an article in a Maine newspaper saying a plant near Bangor had doubled capacity since last year, and would be doubling capacity again over the next 4mos.

It's going to be very interesting to see what the price goes to, and if they remain an economically viable fuel next year.

Jim

 

[4124elad]

The price for the pellet makers is unchanged. It is the retailers that are setting the price.

The cost for a truckload is a hundred a ton wholesale.

 

[mgreenage1]

lt has little to do with production and transportation costs. Cheap HHO means there will be far fewer people burning pellets. Less demand for pellets will bring down the cost significantly. If oil stays where it is now, there will probably be a glut of pellets next summer.

Obviously less demand will certainly impact the cost to us end-users in a positive way, but to what extent I'm not really sure. There is another significant factor in play here that has gotten little if any mention(on this thread) and that is the availability of raw product needed to produce pellets. Sawdust is at a premium right now due to the slow new home construction market and building/construction in general. Again, to what extent this impacts the final costs to us I'm not sure, but it is definitely a factor right now.

Mark

 

[MCPO]

READ MY LIPS. No such thing as gouging! If you didn't buy any and choose to buy elsewhere then why are your panties all waded up in a bunch about what they are charging. Smile and walk away.

READ MY LIPS ! When someone charges a significantly higher price for pellets , it`s called gouging even if you don`t buy them. Not everyone can walk away and buy them elsewhere and not everyone bought their supply earlier. The shortage simply forces some folks to buy at the exhorbitant prices. There`s no doubt the pellet industry has taken advantage of the consumer in this situation not unlike the stove makers and dealers too.