{"id":75450,"date":"2018-04-11T12:10:50","date_gmt":"2018-04-11T12:10:50","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/good-profits-canadian-lumber-producers-despite-us-duties\/"},"modified":"2025-09-19T08:47:49","modified_gmt":"2025-09-19T08:47:49","slug":"good-profits-canadian-lumber-producers-despite-us-duties","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/good-profits-canadian-lumber-producers-despite-us-duties\/","title":{"rendered":"Good profits for the Canadian lumber producers despite US duties"},"content":{"rendered":"

Main lumber producers in British Columbia keep on booking major profits\u00a0on near record lumber prices a year after the US\u00a0Department of Commerce instituted the antidumping duties on Canadian lumber imports.<\/strong><\/em><\/p>\n

The benchmark price for 1,000 board-feet of top-quality western Canadian two-by-fours hit US$540 about a month ago, according to the trade publication Madison's Lumber Reporter, compared with US$315 at the start of 2017 before US interests re-ignited the ongoing trade dispute, Prince George Citizen reported.<\/p>\n

Bottlenecks in rail transportation plaguing all industries are one reason lumber prices have spiked so high, but solid demand has also allowed producers to simply pass the price of tariffs along to consumers in prices, said Susan Yurkovich, president of the B.C. Lumber Trade Council.<\/p>\n

\"Who knows how long these prices will hold, but for now (they are) mitigating the impact of duties for Canadian producers<\/em>,\" said Yurkovich, who is also CEO of the Council of Forest Industries, one of the forestry sector's main industry groups.<\/p>\n

After the US Lumber Coalition complained about the\u00a0Canadian lumber producers last April, the US\u00a0Department of Commerce levelled preliminary duties. The final duties\u00a0were set last fall at between 20.8 per cent and 22.1 per cent, depending on which company it is.<\/p>\n

In the meantime, West Fraser Timber Co. Ltd., Canada's biggest lumber producer, reported a $596 million profit in 2017, up from $326 million in 2016. Canfor Corp., the country's second-biggest producer, reported $345 million in profits up from $151 million in 2016.\u00a0The US case is that Canadian, particularly British Columbian, lumber producers are unfairly subsidized because the province's methods of granting access to Crown-owned timber doesn't constitute a fair market, allowing B.C. producers to undercut American mills.\u00a0Last year, however, B.C.'s lumber production shrank slightly due in large part to the record wildfires that interrupted logging and burned timber supplies,\u00a0Prince George Citizen reported.<\/p>\n

During 2017, the total lumber exports from British Columbia decreased by 9%, to 25.3 million m3, while shipments to the US came down by 10%, to 16.1 million m3. The decline was also caused by B.C. having to\u00a0reduce timber harvests for several decades to allow its forests to recover from the mountain pine beetle infestation.<\/p>\n

And US lumber producers, including mills that turn out competing southern yellow pine, have been able to push up prices for their own product in lock step with tariff-driven Canadian prices, said Keta Kosman, publisher of the trade publication Madison's Lumber Reporter.<\/p>\n

\"You could almost say sawmills in the southern US must be doing handsprings<\/em>,\" Kosman said, \"because it is putting southern-pine prices up when that has nothing to do with the (tariffs)<\/em>.\"<\/p>\n

However, B.C.'s biggest lumber producers, such as West Fraser Canfor and Interfor, are also sharing in those benefits having bought some 40 US mills between them during the term of the last Canada\/US trade agreement.\u00a0The biggest losers among Canadian forest-product producers, Kosman said, are the value-added manufacturers who are being charged the higher prices for lumber then have to pay tariffs on finished products that they sell into the US, Prince George Citizen reported.<\/p>\n

Yurkovich said Canada is continuing to push the dispute in litigation having filed appeals both under NAFTA and with the World Trade Organization.\u00a0For the moment, however, she added that efforts to renegotiate NAFTA have put negotiations for a new Canada\/US lumber deal on the back burner.<\/p>","protected":false},"excerpt":{"rendered":"

Main lumber producers in British Columbia keep on booking major profits\u00a0on near record lumber prices a year after the US\u00a0Department of Commerce instituted the antidumping duties on Canadian lumber imports. The benchmark price for 1,000 board-feet of top-quality western Canadian … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":57885,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4713,4716,4715],"tags":[3313,3459,3306,3743,3252],"class_list":["post-75450","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-companies-in-the-timber-industry","category-latest-trends","category-market-analysis","tag-canada","tag-duties","tag-lumber","tag-producers","tag-us","topic-forestry","topic-sawmilling","area-north-america"],"acf":[],"yoast_head":"\nGood profits for the Canadian lumber producers despite US duties - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/good-profits-canadian-lumber-producers-despite-us-duties\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Good profits for the Canadian lumber producers despite US duties - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"Main lumber producers in British Columbia keep on booking major profits\u00a0on near record lumber prices a year after the US\u00a0Department of Commerce instituted the antidumping duties on Canadian lumber imports. 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