Francis Palasieski

Canadian lumber duties just jumped to 35.19%. …When Canadian prices rise, US mills often raise their own prices in response. …This market behavior reduces negotiating room for dealers and tightens margins no matter where the lumber originates. …There is a prevailing trend unfolding where more architectural and engineering specifications are calling for Canadian SPF. The reason is not quality but differences in grading rules and design values. Canadian SPF and American SPFs are graded differently and are not interchangeable under many construction specifications. This means that when a project specifies Canadian SPF, dealers must supply it to meet the requirement. …The American Building Materials Alliance (ABMA) supports a negotiated resolution to the lumber dispute that addresses unfair trade practices while ensuring stable supply and predictable pricing. …Our outlook is that the current 35.19% duty rate when combined with the preference for Canadian SPF over American SPFs will keep price pressure high.