Just some notes on what I'm seeing in my area regarding supply/demand, and I'm wondering what some of you guys are seeing locally.
In a word, it's just nuts around here. I've sold almost as many saws year to date as I did all of last year. I've got my first load of splitters coming in today and half of them are spoken for. Good hardwood is plentiful in my area, and many people are going in that direction. And those that are already burning, are expecting to burn more this year to avoid oil/propane as much as possible.
For those of us that cut our own wood, not much has changed. Free wood is a little harder to find, and you have to move a little quicker to grab it. There was a good size ash that blew down in Monday's thunderstorm just around the corner from my house. I thought about jumping on it on the way to the store yesterday morning, but the pieces were too big to move with out cutting and I didn't want to fire up a saw at 7:15AM. On the way home at around 6:30, there wasn't much left! Got about a 3rd of a load of 6" stuff.
But for everybody who is selling or buying wood, it's just insane right now. Most sellers have asked us to stop giving out their cards since they are so far behind with their regular customers. In addition to the oil price issue, last winter dragged on and on and most people burned their wood piles down to the ground. A person who would normally order 5 cords, is ordering 8. Buyers who don't have a regular supplier are have a tough time finding one. And those that do are getting more promises than wood.
Things are kind of tight on the supply side as well. There isn't much building going on now, so wood from clearing jobs is pretty much non existent. So the only guys with a steady supply are loggers, but they are more inclined to sell it in log lengths than cut and split. So, a lot of people who need to buy wood are going to have to cut it up themselves.
Prices are at $200 now, but most guys see it going up past $250 by heating season. But the real issue isn't going to be how much is costs by then, but how much is left. There probably won't be any seasoned wood period.
The other thing is that this whole firewood scramble is still gaining momentum, so it's likely to get crazier as the summer goes by. By Fall, it's really going to hit the fan. It should be interesting.
What are you guys seeing out there?
