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firewood boom now bust?


difflock
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Like someone said oil won't be cheap for long! It will soon go back up. Most of my customers have bought log burners because it's a fashion thing rather than saving money. Most are just room heaters rather than heating the house and water too. The RHI biomass customers won't go back to oil because they obviously get paid to burn wood and not oil.

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So a couple of processors for sale and heating oil at a low and that's it end of the firewood?

 

Hi Sur, some o younz is wile easy riled:001_tt2::lol:

 

Ah not nivver said owt about "the end of firewood"

 

Merely alluded to an adjustment in prices :001_rolleyes:

 

cheers

 

Marcus

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Think the people doing logs like me who sell a few hundred cube a year as a side line to a main business will quietly carry on as will the guys buying their timber standing. RHI funded kilns are doing nothing good to the price in the market, I have a lad here buying in cord, getting it processed, stuffing it into an RHI funded kiln and then going out at £95 a cube delivered. Cant see how the hell he can make a decent profit.

 

I do think that there may be some milage in sharing a larger machine between several local people to get optimum use out of it.

 

Bringing in KD from the Baltic is also cost effective if the price of Ash gets over £60 a ton.

 

A

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Think the people doing logs like me who sell a few hundred cube a year as a side line to a main business will quietly carry on as will the guys buying their timber standing. RHI funded kilns are doing nothing good to the price in the market, I have a lad here buying in cord, getting it processed, stuffing it into an RHI funded kiln and then going out at £95 a cube delivered. Cant see how the hell he can make a decent profit.

 

 

 

I do think that there may be some milage in sharing a larger machine between several local people to get optimum use out of it.

 

 

 

Bringing in KD from the Baltic is also cost effective if the price of Ash gets over £60 a ton.

 

 

 

A

 

 

You can't see how he's making a profit

If it's £60 a ton delivered in round wood

To a cube there would be about £30 worth of wood

And the RHI on top of that

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Depending on the level of tariff he is receiving, he is doing very very very well, very very well or very well.

 

I plan to keep prices static for as many years as possible, even as roundwood prices creep up - making woodfuel a mainstream energy source, as affordable as possible for the masses.

Economies of scale can make it possible.

 

Those with woodburners seem to love them and really look forward to lighting them when the cold evenings arrive and/or rather than putting the heating on.

 

For the majority who sell good quality fuel - No need for a career change just yet :thumbup1:

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I think the mild weather for the last few years has slowed the firewood business. After the cold winters everyone jumped on the band wagon and I bet a lot of big players got stuck with stock. The chancers that did not realise the work or investment will have fallen away now.

 

You should now have genuine people with a good product. If you have a cold winter you should all do well. With so many kilns about now if it drops cold there may not be so much of a shortage as before as certain merchants will be able to react quickly.

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Think the people doing logs like me who sell a few hundred cube a year as a side line to a main business will quietly carry on as will the guys buying their timber standing. RHI funded kilns are doing nothing good to the price in the market, I have a lad here buying in cord, getting it processed, stuffing it into an RHI funded kiln and then going out at £95 a cube delivered. Cant see how the hell he can make a decent profit.

 

I do think that there may be some milage in sharing a larger machine between several local people to get optimum use out of it.

 

Bringing in KD from the Baltic is also cost effective if the price of Ash gets over £60 a ton.

 

A

 

Around here its £250 for 4m3 of kiln dried hardwood delivered. The RHI Must be making them enough to undercut the competition

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