Why are pellets prices not dropping?

[Pete Zahria]

...by spring they will be stuck with 1000's of tons as I wont be buying pellets until there $150 a ton

How much you want for your stove?

Dan

 

[Arti]

$250 a ton here up from $200. last year. No shortage locally so I can buy a better quality pellet. Corn is $120 a ton so if you mix it 50/50 it is about 190 a ton for fuel.

 

[canuck_22]

By the time pellet makers are ready to adjust, fuel prices will be back up, the price for a bag here in Ontario has been stable at $5.50, $5.25 or so if you buy by the pallet. For anyone heating electric we are way ahead of the game as Hydro One here is out of control. Out of curiosity I heated with the heat pump one day last week, it added $3.50 to the total consumption over and above what it normally cost heating with pellets, now factor in the stupid Ontario charges and that's more like $7.00!! I don't what to even think what the cost would be if I turned on the Convectair's again, yikes.

 

[EatenByLimestone]

I'd bet the Russians are playing a big part of it. It would take time to get natural gas from here over to Europe by tanker. You could get pellet stoves and pellets over pretty quickly and since they don't have a way to heat you can charge what you want for them. I imagine the stoves could be modified to run on their electricity quite inexpensively.

It might be time for them to pick up Gillette's model. Give away the stove and keep them hooked on pellets for life.

Sticking with Russian natural gas is worse than paying Germany royalties for every 1903 Springfield produced in WWI.