by Web Editor | Dec 18, 2017 | News
In WOOD MARKETS’ new five-year softwood lumber forecast, the continuation of U.S. duties on Canadian lumber exports to the U.S. are expected to cause more short-term market and price volatility. The preliminary duties launched earlier in 2017 rocked the U.S. market and more of the same is expected in 2018. As we predicted one year ago, the headline for last year’s WOOD MARKETS 2017 news release was bang on: “U.S. Import Duties on Canadian Lumber to Cause Market Chaos and Soaring Prices.” Indeed, they did. The WOOD MARKETS 2018 Outlook Report predicts more chaos and the chance of further record-breaking prices.
These details and further analysis of commodity lumber and structural panels was released earlier this week in the report, WOOD MARKETS 2018 – The Solid Wood Products Outlook: 2018 to 2022 by WOOD MARKETS/FEA Canada, Vancouver BC.
The recent announcement of final countervailing (CVD) and anti-dumping (ADD) duties on Canadian lumber exports to the U.S. will cause lumber prices to remain near record levels in 2018 and even higher at various points over the next five years. This is because Canadian exports to the U.S. are forecast to ease in 2018.
“Simply put,” indicated Russ Taylor, Managing Director, WOOD MARKETS/FEA Canada, “by restricting incremental Canadian lumber exports via import duties, there may not appear to be enough lumber supplies to adequately balance with projected U.S. demand. There will need to major increases in U.S. lumber capacity (which is starting to build), more offshore imports, and/or record-level prices to stimulate more supply. The question that we have seen coming for a number of years is: Where will the U.S. get all of the lumber it needs, and at what price?”
The impact of U.S. import duties on Canadian lumber production and exports has been developed from building a cost curve of Canadian producing regions from WOOD MARKETS’ Global Timber/Sawmill/Lumber Cost Benchmarking Report. From this, WOOD MARKETS has overlaid a cross-Canada timber supply availability map with delivered log and sawmill costs to determine which producing regions (and mills) are most impacted by 20.23% (“all-others”) import duties.
Read more on this from International Wood Markets at https://www.woodmarkets.com/news-release-record-level-lumber-prices-expected-2018-u-s-import-duties/.
by Web Editor | Dec 11, 2017 | News
The United States International Trade Commission (ITC) ruled that the U.S. lumber industry is materially injured by Canadian government subsidies of their softwood lumber industry.
Voting 4-0 in favor of the U.S. lumber industry, the ITC ruling follows a U.S. Department of Commerce determination that imports of softwood lumber from Canada are sold in the United States at less than fair value and subsidized by the government of Canada. The antidumping and countervailing duties on imports of Canadian softwood lumber products have been collected pending the final demermination of the ITC.
“The U.S. Lumber Coalition fully supports the enforcement of America’s trade laws. The evidence presented to the ITC was clear – the massive subsidies that the Canadian government provides to its lumber industry and the dumping of lumber products into the U.S. market by Canadian companies cause real harm to U.S. producers and workers,” said U.S. Lumber Coalition Co-Chair and Co-President of Pleasant River Lumber Company, Jason Brochu.
“Now, with a level playing field, the U.S. lumber industry, and the 350,000 hardworking men and women who support it, can have the chance to compete fairly.” Pleasant River stamps each board with a Made in USA label at its Sanford, Maine sawmill.
Under the Trump Administration, the Department of Commerce, which operates the International Trade Commission, has been ratcheting up pressure on U.S. trading partners over what it sees as subsidies across several industries, beginning the forest products sector. Last week China was hit with a formal determination by the ITC that it subsidized plywood exports to the U.S., effectively dumping low-priced plywood to the detriment of the domestic manufacturers. The Department of Commerce is expected to pursue solar panel manufacturers in China in coming weeks.
From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/canadian-lumber-subsidies-harmed-us-producers-trade-commission-rules?ss=news,news,woodworking_industry_news,news,almanac_market_data,news,canadian_news
by Web Editor | Mar 27, 2017 | News
The Coalition for Fair Trade of Hardwood Plywood has filed “critical circumstances” petitions with the Department of Commerce to stop recent shipments of Chinese hardwood plywood imports into the U.S., according to the Hardwood Plywood and Veneer Association.
HPVA said that the shipments are being made in an attempt to enter the market before anti-dumping and countervailing duty orders are imposed.
If the coalition’s actions are successful, anti-dumping and countervailing duties will be imposed 90 days earlier, subjecting Chinese hardwood plywood imports to duties of up to 100 percent or more.
Commerce’s preliminary determinations in the countervailing duty case and anti-dumping case are due no later than April 17 and June 16, respectively. If critical circumstances are found, Chinese hardwood plywood imported as early as January 17 will be subject to countervailing duties, and Chinese hardwood plywood imported as early as March 16 will be subject to anti-dumping duties.
See https://www.hpva.org/ and https://hardwoodplywoodfairtrade.com/ for more information.
From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/us-producers-seek-new-duties-against-chinese-plywood?ss=news,news,woodworking_industry_news,news,almanac_market_data,news,canadian_news
by Web Editor | Jan 6, 2017 | News
The United States International Trade Commission says there is a “reasonable indication that a U.S. industry is materially injured by reason of imports of hardwood plywood from China that are allegedly subsidized and sold in the United States at less than fair value.”
Noting all six of its commissioners voted in favor, the U.S. Department of Commerce will continue to conduct its antidumping and countervailing duty investigations on imports of hardwood plywood. A judgment on whether countervailing duties should be levied to discourage the imports is due February 13, 2017, and its preliminary antidumping duty determination due on or about April 27, 2017.
The issue is contentious, with U.S. plywood makers – the Hardwood Plywood Coalition – battling to restrict China’s exports, while an opposing group that buys plywood for casegoods, the American Alliance for Hardwood Plywood (its members include the Kitchen Cabinet Makers Association) wants to allow imports to continue as is.
Indeed, the American Alliance for Hardwood Plywood issued a statement expressing disappointment in the ruling by the International Trade Commission. AAHP Chairman Greg Simon issued the following statement:
“We are disappointed that this investigation will proceed, but remain very confident that the facts continue to be on our side. This is now the third time that the federal government will conduct a thorough review and we believe they will reach the same finding as before–imported hardwood plywood products from China are traded fairly at competitive prices and have a rightful place in the global consumer market. This continued legal harassment by CFTHP against imports is putting thousands of U.S. jobs at risk during a time when manufacturing is in desperate need of revival. Our alliance of small medium and large American importers, distributors, retailers of hardwood plywood and domestic kitchen cabinet manufacturers remains united in opposition to these bogus charges and look forward to presenting our side to the ITC and Department of Commerce in the coming months.”
From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/china-hardwood-plywood-dumping-gets-third-review-international-trade?ss=news,news,woodworking_industry_news,news,almanac_market_data,news
