Since the winter of 2013/2014, wood pellet markets have been wild. Pellets have at times been scarce, and expensive. Last year I was thankful to find decent (not good, just decent) pellets at H*me Dep*t for $259/ton. Other decent pellets were going for upwards of $300/ton while the really good stuff could get up to $400/ton. But, with high oil and propane prices, I couldn't complain and still saved huge compared to propane prices. And I was thankfull too that last year, although some places had pellet shortages, I was always able to find what I needed (being able to store a couple ton in the basement helped too).
The pellet makers responded to the last two hard winters by making sure we had an abundance of pellets, and the Big Box Stores (BBS) likewise brought in huge stores of inventory, which is good in a sense. However, they are at the same prices as last year and with the mild winter, and cheaper oil, pellets were sitting and few were buying (those few were people like me who still save money over propane by using pellets). I started off the season with 5+ tons; four I bought in the fall and I had a bit over a ton left from last season. I have bought 5-10 bags of pellets here and there when I could find a good deal on something I hadn't tried and I have about 2.5 tons in the house/garage to get me thru the rest of this season (unless the weather gets really wacky, I should have plenty left).
A couple of weeks ago L*we's lowered their decent pellets to $199/ton, with free delivery if you bought at least 2 tons. I had 2 tons delivered about 10 days ago
Monday is the last day of the sale, and HD hasn't lowered their price any, so I decided to order another couple of tons. Those will be delivered in the middle of the week. If HD lowers their price, I will probably get some of theirs too.If I get the chance to get some of the really good pellets at around the $259/ton mark, I will try to grab some of those as well. I may have to store a lot outside, but I need to take advantage of both the supply and the prices.
See, all the talk on the pellet forums is on what will happen next year. Several pellet plants have been shut down for the last month or so because they aren't selling their stock. Some of them may never reopen. Those that do, will probably not produce as many pellets next year to reduce their chances of being burned on the market again. The BBS will probably not order the inventory as they did this year, for the same reason. If those ideologies hold true and we have a tough winter next year, there may be pellet shortages and/or outrageous prices.
It will be interesting to see what happens next winter. It will also be interesting to see how big a lean-to or storage tent I need to set up.
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