Results 1 to 14 of 14

Thread: Thought lumber prices were high?

  1. #1
    Join Date
    Sep 2001
    Location
    Wateree, South Carolina
    Posts
    48,812

    Default Thought lumber prices were high?

    U.S. Commerce Department doubles tariffs on Canadian softwood lumber

    'We find the significant increase in today's preliminary rates troubling,' says B.C. Lumber Trade Council
    The Canadian Press · Posted: May 21, 2021 4:53 PM ET | Last Updated: May 21

    The B.C. Lumber Trade Council is upset by the United States' decision to double tariffs on Canadian softwood lumber. (CBC)

    A move by the U.S. Commerce Department to increase preliminary tariffs on softwood lumber imports from Canada, if finalized, will raise producer costs and cut into their profits but is unlikely to affect prices to consumers of wood products, analysts say.

    The department's recommendation to more than double the "all others" preliminary countervailing and anti-dumping rate to 18.32 per cent from 8.99 per cent on Friday drew criticism from the Canadian government and industry and applause from the lumber industry south of the border.

    The increase is unlikely to result in higher lumber prices because they've more than doubled in the past year to all-time record highs, said Kevin Mason, managing director of ERA Forest Products Research.

    "Prices are supply-and-demand driven," he said. "(Tariffs) drive the cost up for producers but it's not going to affect prices."

    Because it's a preliminary tariff rate, current cash deposit rates will continue to apply until the finalized rates are published, likely in November.

    "U.S. duties on Canadian softwood lumber products are a tax on the American people," said Mary Ng, minister of Small Business, Export Promotion and International Trade, in a statement.

    "We will keep challenging these unwarranted and damaging duties through all available avenues. We remain confident that a negotiated solution to this long-standing trade issue is not only possible, but in the best interest of both our countries."

    In a note to investors, RBC analyst Paul Quinn said finalized rates from the previous administrative review process wound up being largely in line with the preliminary rates.

    "We think higher rates will incentivize producers to push harder for a resolution to the softwood lumber dispute, which could unlock significant cash," he said, noting an estimate that collected tariffs from Canadian producers on deposit add up to more than $4 billion.

    Friday's rates applied to individual companies vary in impact, he said, with West Fraser Timber Co. Ltd. up slightly to 11.4 from nine per cent, Canfor Corp. up to 21 from 4.6 per cent, Resolute Forest Products Inc. jumping to 30.2 from 20.3 per cent, and J.D. Irving up to 15.8 from 4.2 per cent.

    Former president Donald Trump's administration imposed a 20 per cent "all others" tariff on Canadian softwood in 2018, before the onset of the COVID-19 pandemic, but lowered it to about nine per cent late last year after a decision favouring Canada by the World Trade Organization.

    The increased tariffs will hurt American consumers who are faced with a market where supply can't keep up with demand, said Susan Yurkovich, president of the BC Lumber Trade Council.

    "We find the significant increase in today's preliminary rates troubling," she said in a news release.

    "It is particularly egregious given lumber prices are at a record high and demand is skyrocketing in the U.S. as families across the country look to repair, remodel and build new homes.

    "As U.S. producers remain unable to meet domestic demand, the ongoing actions of the industry, resulting in these unwarranted tariffs, will ultimately further hurt American consumers by adding to their costs."

    Federal Conservatives call for special Commons study of Canada-U.S. relations
    She called on the U.S. industry to end its decades-long campaign alleging Canadian lumber is unfairly subsidized and instead work with Canada to meet demand for "low-carbon wood products" the world wants.

    In a separate news release, Jason Brochu, U.S. Lumber Coalition co-chair, applauded the Commerce Department's commitment to enforce trade laws against "subsidized and unfairly traded" Canadian lumber imports.

    The coalition says the U.S. industry remains open to a new U.S.-Canada softwood lumber trade agreement "if and when" Canada demonstrates it is serious about negotiations.

    https://www.cbc.ca/news/politics/com...iffs-1.6036806

  2. #2
    Join Date
    Sep 2017
    Location
    Blythewood
    Posts
    2,088

    Default

    "Prices are supply-and-demand driven," he said. "(Tariffs) drive the cost up for producers but it's not going to affect prices."

    so "producers" are just going to eat the additional cost of doing business? What a good natured bunch of folks

  3. #3
    Join Date
    Feb 2003
    Location
    united states of america
    Posts
    21,587

    Default

    This is by far the most evil or most clueless administration we've ever had. I think it's both.

  4. #4
    Join Date
    Oct 2019
    Posts
    821

    Default

    Good thing for our markets if we will ever see a trickle down effect to the logger and landowner. Terrible for the consumer wanting to build. Canadians have had a strangle hold on us for too long but I did like reasonably priced lumber.

  5. #5
    Join Date
    Dec 2014
    Posts
    1,046

    Default

    Never underestimate the dangers of stupid people.

  6. #6
    Join Date
    Dec 2010
    Posts
    15,733

    Default

    Trump placed a tariff on Canada. Canada mills buy from the government at bargaining rates. The WTO can go screw themselves again. American workers should not have to compete against any subsidized products.

  7. #7
    Join Date
    Jan 2005
    Location
    FROG LEVEL
    Posts
    23,785

    Default

    Quote Originally Posted by Sportin' Woodies View Post
    This is by far the most evil or most clueless administration we've ever had. I think it's both.
    You forgot dumb and stupid on top
    Gettin old is for pussies! AND MY NEW TRUE people say like Capt. Tom >>>>>>>>>/
    "Wow, often imitated but never duplicated. No one can do it like the master. My hat is off to you DRDUCK!"

  8. #8
    Join Date
    Jun 2015
    Posts
    1,182

    Default

    What’s this gonna do for the price of my pine trees?

  9. #9
    Join Date
    Oct 2014
    Posts
    1,786

    Default

    Quote Originally Posted by ADP View Post
    Good thing for our markets if we will ever see a trickle down effect to the logger and landowner. Terrible for the consumer wanting to build. Canadians have had a strangle hold on us for too long but I did like reasonably priced lumber.
    I hope so. Prices are low as hell right now on stumpage. We don’t need to be buying Canadian pine with all we have her in the USA.

  10. #10
    Join Date
    Jan 2003
    Location
    SC
    Posts
    24,412

    Default

    .

    Sent from my moto z4 using Tapatalk

  11. #11
    Join Date
    Nov 2008
    Location
    In My Truck
    Posts
    3,654

    Default

    Quote Originally Posted by Rabbitman09 View Post
    I hope so. Prices are low as hell right now on stumpage. We don’t need to be buying Canadian pine with all we have her in the USA.
    I don’t think most of the people on here realize Canada has been killing us on timber for over 30 years now.

    Fuck Canada and their trees
    Windows Down!

  12. #12
    Join Date
    Dec 2010
    Posts
    15,733

    Default

    Yep. The globalist allowed it with steel and aluminum too. I am surprised Biden allowed this. Canada sells their government trees, while let them burn in forest fires.

    It would help if we stopped the welfare to farmers. We cannot blame other countries for subsidizing when we do the same with grains.

  13. #13
    Join Date
    Sep 2001
    Location
    Wateree, South Carolina
    Posts
    48,812

    Default

    Former President Donald Trump says the Biden administration is to blame for surging lumber prices that are weighing down the housing market.

    Trump said, 'It's going to be ugly when you look at the cost of a house, just the materials for a house'

    By Jonathan Garber FOXBusiness

    Biden’s Depart of the Interior earlier this year moved to block Trump’s decision to roll back habitat protections for the spotted owl which would have opened up millions of acres to the timber industry.

    "They don't want to take down any trees, so we end up buying them from other countries," Trump told Newsmax’s Steve Cortes.

    The U.S. imports about $4.5 billion of softwood lumber each year from Canada. The Biden administration last week took steps to double tariffs on those imports despite pleas from homebuilders to remove the 9% tax.

    Lumber futures traded at CME Group have surged by as much as 90% this year, hitting a record high of $1,670 earlier in May, due to supply chain bottlenecks and strong demand for building projects amid the pandemic.

    Lumber prices have "gone through the roof," Trump said. "It's going to be ugly when you look at the cost of a house, just the materials for a house."

    The spike in lumber prices has added $36,000 to the cost of building an average-sized new home.

    Rising prices have begun to put a damper on the red-hot U.S. housing market, which accounts for approximately 13% of the U.S. economy.

    Sales of new homes declined 5.9% in April to 970,000 units, according to a Census Bureau report released Tuesday, as the high cost of materials left builders reluctant to sign contracts. Others entering contracts have been adding escalator clauses to protect against increases.

    New home sales make up about 10% of the housing market.

    Earlier signs of a potential slowdown in the housing market popped up last week when a Commerce Department report showed housing starts fell 9.5% in April to a seasonally adjusted 1.71 million homes. Economists also attributed that larger than expected decline to soaring costs for lumber and other materials.

    https://www.foxbusiness.com/economy/...n-trade-policy

  14. #14
    Join Date
    Jan 2005
    Location
    FROG LEVEL
    Posts
    23,785

    Default

    Matter of time.
    Gettin old is for pussies! AND MY NEW TRUE people say like Capt. Tom >>>>>>>>>/
    "Wow, often imitated but never duplicated. No one can do it like the master. My hat is off to you DRDUCK!"

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •