In the last two years, we’ve seen steep run-ups in the price of everything from oil to eggs. Through this period, by adding capacity and focusing on reducing distribution costs, we have actually been able to hold pellet pricing stable. But there are limits on our ability to continue to do so. We want you to understand why.
As described in the Wall Street Journal recently, the slow-down in home construction nationwide has impacted the supply of sawdust and, coupled with increased demand – including that of the pellet heating market – is driving up raw material prices, quadrupling the cost of sawdust in some markets. (Read article)
The costs of wood pellets is also strongly driven by transportation costs. The costs of bringing raw wood to pellet plants, and then moving finished pellets out to market are being driven up by rising diesel prices (Read article). Furthermore, as demand mounts, we now need to bring in fuel from more distant sources, just to keep up.
For all these reasons, we strongly recommend buying your pellets early this season. We can deliver to you this spring or summer at a discount, or offer you the opportunity to lock in fall pricing now.
If better pricing for the fall somehow does appear later on our website, we are always happy to switch your order to the lower price. But with what is happening in the markets, we do recommend locking in your savings now.
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Jon Strimling
President,
PelletSales.com
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Rising Diesel Price Impacts
Transportation Costs |
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| Cost of Delivery to Customers |
| Cost of Transport to Markets |
| Pellet Manufacturing |
| Wood Transport to Plant |
| Raw Materials |
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