From the Director’s Desk: Your Average September, Host Your Policymaker During Fall Recess
Your Average September
If the 2024-25 heating season is going to see a bounce back from two consecutive forgettable heating seasons, this month will need to feel more like the 5-year average for September (209,615 tons) than last year’s very “meh” 192,339 tons in sales.
September sales are motivated by consumers’ preparatory behavior, and where pellet users ended the prior year from an inventory perspective which is good news considering this September feels more like an August than a September (see Photo of the Week).
U.S. Total Sales 209,615 tons/192,339 tons
U.S. Total Production 167,294 tons/167,746 tons
U.S. Total Inventory 198,926 tons/229,446 tons
Highest September U.S. Production – 186,550 tons (2019)
Highest September U.S. Sales – 229,327 tons (2019)
A few other notables:
East – The 5-year production average in the region is a healthy 107,587 tons, the highest monthly production average for the region. The production record for September in the East was set in 2019 with 115,850 tons of production.
West – Last year, the West recorded its highest September production total ever at 44,747 tons. It will be interesting to see the region’s production totals for the second half of the year as the EIA currently lists a significant producer in the region as “temporarily not in operation.” While the region may currently be down a producer, inventory levels at the end of June were well ahead of the 5-year average and the region seems poised to cover the shortfall should the production outage persist.
Host Your Policymaker During Fall Recess
With an election looming, Congress will take its traditional fall recess to spend time campaigning back home. Officially, the fall recess begins Monday, September 30 and extends for six weeks when both chambers return on a post-election Tuesday, November 12. With an eye on this election year calendar, the Pellet Fuels Institute executed its annual fly-in in the Spring, on May 1st.
This Fall, we are focused on bringing policymakers to us. Have you ever had an elected official tour your facility? Nothing is as impactful for painting a clear picture of what our industry does and how we do it as a facility tour. The reality of wood pellet production, not the narrative that someone else has crafted, comes through.
We have begun the process of issuing invitations to policymakers in key districts and would love to support you in hosting a tour at your plant. If you’d like the Pellet Fuels Institute’s assistance in inviting and hosting a policymaker, please reach out to me.
NHLA Hosting EUDR Webinar Next Week
The European Union Deforestation Regulation, set to take effect in 2025 is really starting to generate some chatter for producers of virtually every forest product made in this country. The premise is relatively straightforward, to import certain products into the European Union, producers must prove that the manufacture of the products did not lead to deforestation. The rule applies to more than just wood products. Producers of rubber, cocoa, soy, palm oil, coffee, and beef will all have to demonstrate that their products have not led to deforestation. The regulation has generated strong pushback from all corners of the global economy and a bit of a standoff has emerged with producers suggesting that compliance will certainly be expensive and may, in fact, be impossible.
The National Hardwood Lumber Association is hosting a webinar next Thursday, September 26 and anyone hoping to better understand what EUDR means for our upstream fiber partners, and what it means to exporters of heating or BBQ pellets should absolutely join. For more information about the webinar, speakers, and to register, visit the EUDR Webinar Page.
—Tim Portz
Executive Director
