When Will Coal Price's Go Down???
- Richard S.
- Mayor
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- Joined: Fri. Oct. 01, 2004 8:35 pm
- Location: NEPA
- Stoker Coal Boiler: Van Wert VA1200
- Coal Size/Type: Buckwheat/Anthracite
Well if the dealer bought at a high price because of shipping costs then it's not going to go down from them unless they can't sell it. Locally it has only gone up about $20 since this time last year.The price of the coal itself has not really seen that much of an increase and a price drop is very unlikely at least until spring. Having said that you will not see an increase either unless the cost of fuel goes above what it did in the Summer which is also unlikely. Keep in mind the cost of coal is about what it was 25 years ago adjusted for inflation.
Locally prices have risen steadily at the cost of inflation and it has not been subject to the wild fluctuations like other markets.
Locally prices have risen steadily at the cost of inflation and it has not been subject to the wild fluctuations like other markets.
I doubt it will ever go down. When will your groceries and everything else that went up do to "cost of fuel" go down. I say none of it will ever return to the prices we had. Just keep that wallet open a little longer. The shippers now know how much raping you can take and they will cotinue to give it.
- bear creek burnout
- Member
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- Joined: Tue. Jul. 08, 2008 1:40 pm
- Location: NEPA
The dealers....the mom & pop guys who actually deliver our coal....are probably not making much more this year because their costs have risen as well. Their margins for profit are thin and fragile and we need them to stay fiscally healthy because I don't see many new upstarts in the coal delivery business.Keep in mind the cost of coal is about what it was 25 years ago adjusted for inflation.
Locally prices have risen steadily at the cost of inflation and it has not been subject to the wild fluctuations like other markets.
Richard you know more about the retail sector of coal sales....have you seen an increase in the number of dealers in the past 10 years? I doubt it. If they can't make a decent living after expenses they close up and move on.
Honestly....if someone told you....or me....in August that the price of a barrel of oil would be below $46 the first week in December would you have believed them? It's down 67% in 13 weeks. Coal does not fluctuate in price that much in such a short period of time.
- UpStateMike
- Member
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- Joined: Mon. Nov. 03, 2008 1:58 pm
- Location: South New Berlin, NY
I think bagged coal demand is up in my area which will counteract any prices from the coal companies. That being said, it would not surprise me to see it falling over the 2009 Summer, which would be the best time to buy it anyways.
- Richard S.
- Mayor
- Posts: 15183
- Joined: Fri. Oct. 01, 2004 8:35 pm
- Location: NEPA
- Stoker Coal Boiler: Van Wert VA1200
- Coal Size/Type: Buckwheat/Anthracite
Don't blame the shippers for the high cost of fuel during the summer, probably anyone making long hauls with coal is an independent because the big trucking companies won't touch it. Most of them make very little money when it's all said and done... been their done that as the saying goes. Many independents and smaller firms went out of business over the summer if that tells you anything.gambler wrote: The shippers now know how much raping you can take and they will cotinue to give it.
- Richard S.
- Mayor
- Posts: 15183
- Joined: Fri. Oct. 01, 2004 8:35 pm
- Location: NEPA
- Stoker Coal Boiler: Van Wert VA1200
- Coal Size/Type: Buckwheat/Anthracite
Locally no, this is tough business to get to started in without a big investment and you have to be it in for the long haul if you expect to make any money. A new lift like the one I have is going to start around $35K, then you need the truck to pull it around and anything over 30K GVW gets expensive to purchase and run.Richard you know more about the retail sector of coal sales....have you seen an increase in the number of dealers in the past 10 years? I doubt it. If they can't make a decent living after expenses they close up and move on.
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- Location: Birdsboro PA.
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i am forced to raise my shop rate at the beginning of 2009 cause of the increased cost of coal........20 bucks a ton here higher than 2007........30 bucks a ton more than 2006.......45 more a ton than 2005
- Richard S.
- Mayor
- Posts: 15183
- Joined: Fri. Oct. 01, 2004 8:35 pm
- Location: NEPA
- Stoker Coal Boiler: Van Wert VA1200
- Coal Size/Type: Buckwheat/Anthracite
Than 2000..... or if you purchased in the spring $25 mare than in 2000 and my guess is if the fuel cost stay stable that will drop about $10 in the spring to $35 more than in 2000. Again it's right inline with inflation practically, might be a little higher this year.lincolnmania wrote:45 more a ton than 2005
I don't blame the shippers because they are there to make money. But it always seems they are eager to up the shipping costs because they need to make money but when the price of fuel gets cut in half they don't seem quite as eager to lower the shipping costs therefore they are making a lot more money. I have a brother inlaw that works finding haulers for his company's product and he told me that even with the price of fuel coming down the cost of shipping has remained where it was and in some cases has still risen. It just seems they have made this "fuel charge" work in their favor.Richard S. wrote:Don't blame the shippers for the high cost of fuel during the summer, probably anyone making long hauls with coal is an independent because the big trucking companies won't touch it. Most of them make very little money when it's all said and done... been their done that as the saying goes. Many independents and smaller firms went out of business over the summer if that tells you anything.gambler wrote: The shippers now know how much raping you can take and they will cotinue to give it.