Wisconsin Lumber & Pallet’s Post

**Big News: Softwood Lumber Duties Just Spiked!** 🪵📈 The US just raised import duties on softwood lumber from **8.05% to a whopping 14.54%!** That's even higher than the 13.86% predicted by the US Department of Commerce earlier this year. This sudden increase will ripple through the industry—affecting both US 🇺🇸 and Canadian 🇨🇦 producers. What does this mean for the cost of new construction? How will it impact the market on both sides of the border? https://lnkd.in/efp_BXEX #timber #sawmill #lumber #globalmarkets #tariff #wood #forestproducts #canada #usa

The US-EU trade in #sawnwood is relatively small. It is mainly the EU that exports sawn wood to the US: in 2023, the EU exported almost EUR 1.5 billion to the US; the opposite flow, from the US to the EU, was about half (EUR 715 million). Nevertheless, EU prices are determined by US prices. When prices in the US are high, exports from the EU increase, reducing supply in the EU market and also increasing prices in the EU market. The opposite happens when prices in the US are low. The result is that the financial prices of #lumber ("coniferous sawn wood") quoted on the Chicago Mercantile Exchange (CME) determine the price of coniferous sawn wood on the European market two months in advance. In this article, Luca Sazzini describes this relationship between the US financial market and the European physical market and the effects on upstream ("#roughwood") and downstream ("#processedwood") prices in the wood supply chain. https://lnkd.in/dnhmVYwM

🚨 USA Slaps Huge Duty on Canadian Lumber: Timber Price Rises Next? 📈The longstanding Canada-U.S. softwood lumber dispute has taken another dramatic turn as the U.S. Department of Commerce has nearly doubled its anti-subsidy and anti-dumping duty on Canadian softwood lumber to 14.54%. This dispute has significant implications, as it impacts over $3 billion in trade between the two nations. 🗣️ In a statement, Canada's Minister of Export Promotion, Mary Ng, expressed her disappointment, stating, “Baseless and unfair US duties on softwood lumber unjustifiably harm consumers and producers on both sides of the border.” Her sentiments were echoed by British Columbia’s Minister of Forests, Bruce Ralston, highlighting the ongoing challenges faced by the industry. 🔍 Why This Matters: 1️⃣ Economic Impact: The U.S. imports more than 84% of its lumber from Canada, and this sudden increase in duties could send shockwaves through the market. With Canadian lumber already a critical supply for U.S. sawmills, this could drive prices up at a time when demand is already weak and mills are struggling. 2️⃣ Market Distortion: The U.S. Lumber Coalition claims that Canada’s practices distort the American lumber market, disadvantaging U.S. producers who must pay market rates for timber. This could lead to further challenges for domestic sawmills and their communities, particularly as lumber prices are at record lows. 3️⃣ Future Litigation: Minister Ng has vowed to challenge this decision through litigation under NAFTA and CUSMA, emphasizing the need for a fair resolution to this long-standing trade dispute. Finding common ground is essential for the economic health of both countries. 🪵 As a significant player in the global softwood market, Canada exports vast quantities of lumber to the U.S., China, Japan, and Taiwan. With Minister Ng's commitment to seek a resolution, the future of this trade relationship hangs in the balance. 🔗 For an in-depth analysis of the softwood lumber dispute and its implications for timber pricing, check out the full feature here: https://lnkd.in/gSTumNx7 🗣️ #questionforgroup: How do you foresee the impact of these new duties on the U.S. housing market and timber pricing? Share your thoughts below! #timber #softwoodlumber #trade #economy #canada #usa #construction #woodcentral #lumberprices #nafta #cusma #forestry #sawmills

U.S. #imposes anti-#dumping duty on tin mill steel products from #Canada   Earlier this month the U.S. Department of Commerce announced its findings that imports of tin mill products from Canada, China, Germany, and the Republic of Korea are being unfairly priced, i.e., dumped, into the U.S. market, and imports of tin mill products from China are also being subsidized. Commerce also found that imports of tin mill products from the Netherlands, Taiwan, #Turkey, and the United Kingdom are not being dumped. Canada’s Minister International Trade, Mary Ng, issued the following statement: “The U.S. Department of Commerce announced a final anti-dumping duty rate of 5.27% on imports of tin mill steel products from Canada. “Canada is disappointed with this determination. The Canadian steel industry is a reliable partner of U.S. customers and plays a crucial role in the North American supply, manufacturing and delivery systems. “These duties not only weaken supply chains between Canada and the United States, but also worsen the impacts of inflation on both sides of the border.” Tin mill steel is a a shiny silver metal widely used in manufacturing cans for food, paint, aerosol products and other containers. https://lnkd.in/eXKB_fUg

https://lnkd.in/gG6-aHfp Lumber demand and prices have reached record lows, sparking mill curtailments and permanent closures across the US and Canada.  Data from the Western Wood Products Association (WWPA) shows US lumber production in the first half of 2024 was down by 3.2% year-over-year. Yet despite the market’s challenges, #Canadian #sawmills increased their softwood lumber production in the year through June by 4.6% year-over-year and exported 3.4% more lumber to the #US.  When the North American lumber market hits a slump, US federal government decisions on Canadian lumber duties usually favor US producers. Therefore, the Department of Commerce's August ruling, which confirmed the preliminary results of its review disclosed in February, was not a surprise.   What is next for Canada Natural Resources Sector – September 2024 - https://lnkd.in/g3AZSi7N U.S. Department of Commerce Pierre Poilievre Shannon Stubbs Western Forest Products J.D. Irving, Limited Canfor West Fraser Western Wood Products Association

Contract rates still 9% lower than a year ago; container shipping contracts more even-keeled than spot Average East-West contract rates paid by over 100 multinationals in Drewry’s container shipping benchmarking club decreased 1% between June and July, benefiting from lower volatility than spot rates, which soared 17% during the same period. The Drewry East-West Contract Rate Index (for which 100 was the contract price paid at the end of 2019) also showed a moderate increase over the last 4.5 years of only 9%, whereas spot rates have increased 3 times over the same period, in the wake of the Red Sea shipping attacks and widespread shipping disruptions. These numbers continue to show that contract rates, which cover the majority of container shipments, are much more favorable to shippers and dependable than spot rates, which are subject to wild, unpredictable swings in prices. They do not confirm the view that shipping is contributing to inflation, as discussed in the media. Some small shippers without contracts and larger shippers who exceed their agreed contractual volume do have to pay more, but those are the exceptions, not the rule. In my opinion, the media and economists pay too much attention to spot rates and not enough to contract rates in shipping. Furthermore, contract shippers are not paying the level of prices of spot rates: contract rates are currently less than a third of what a spot shipper would pay. International shippers requiring advice on how to negotiate and secure container shipping contracts via effective online tenders can contact Drewry’s ocean procurement consultants at supplychains@drewry.co.uk #containershipping #freightrates #procurement #contract #inflation

The ultimate concern is the last-minute changes to ERDs and cut-offs. This is the exact problem that Splice Exports solves at 60 terminals across the US and Canada. From the article: "One exporter, who did not want to be identified, said the issue isn’t so much about whether the earliest receiving date is five or 10 days before vessel departure, but rather the port authority locking in a firm date that it doesn’t change at the last minute, which can wreak havoc on warehouse operations." To get the receiving window right, timely updates from the terminal and the ocean carrier are needed, and this is a key capability of Splice Exports. In addition to warehouse ops, changes affect production planning, inventory management and drayage. Having better visibility into the changes is Splice Export's value. Let me know if you'd like to see how we do it. #ERDs #portcuts #exporters #agriculture https://lnkd.in/e-w8UJeq

The U.S. International Trade Commission has voted to end an antidumping duty probe into imports of tin mill products from South Korea, stating that the imports are considered to be negligible in the U.S. market. The commission also determined that tin mill products from Canada, China, and Germany do not pose a threat to the U.S. industry. The Department of Commerce had previously announced that imports of tin mill products from South Korea, China, Canada, and Germany had been dumped into the U.S. market. #AsiaOperations #TradeIssuesandNumbers #SouthKorea Follow us for daily updates on risk and operations in Asia! https://lnkd.in/gyKCnehk

The Drewry World Container Index composite of eight major trade lanes dropped 2.2% to $5,806 for a 40-foot unit. Snapping a 12-week-long advance, according to figures released Thursday. Still about three times higher than the rate posted at the end of 2023 — when cargo ships started diverting away from the Red Sea to avoid Houthi attacks. The benchmark Shanghai-to-Los Angeles rate dropped for a second straight week, sinking 4.9% to $6,934. Shanghai to Rotterdam was little changed at $8,260, Drewry’s figures showed.

𝗧𝗵𝗲𝘀𝗲 𝗰𝗹𝗼𝘀𝘂𝗿𝗲𝘀 𝘄𝗶𝗹𝗹 𝗮𝗳𝗳𝗲𝗰𝘁 𝗮𝗿𝗼𝘂𝗻𝗱 𝟱𝟬𝟬 𝗲𝗺𝗽𝗹𝗼𝘆𝗲𝗲𝘀 𝗮𝗻𝗱 𝗿𝗲𝗱𝘂𝗰𝗲 𝘁𝗵𝗲𝗶𝗿 𝗕.𝗖. 𝗽𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝗼𝗻 𝗯𝘆 𝟲𝟳𝟬 𝗺𝗶𝗹𝗹𝗶𝗼𝗻 𝗯𝗼𝗮𝗿𝗱 𝗳𝗲𝗲𝘁 𝗮𝗻𝗻𝘂𝗮𝗹𝗹𝘆. 🌲🪓🪵👷♂️👷♀️ The socio-economic impacts of this will be devasting to communities, government revenues and families. How can British Columbia build a more robust and resilient economy in this important sector? Please weigh in. 🧐 👀 Following what they say is a thorough review of operating conditions, including the persistent challenge accessing economic fibre, ongoing financial losses, weak lumber markets and increased US tariffs, Canfor Corporation announced the closure of its Plateau and Fort St. John operations located in northern British Columbia. Don Kayne, President and CEO made the following statement: “Our company has proudly operated in BC for more than 85 years, supporting jobs and economic activity in communities around this province. During that time, we have always been prepared to manage through challenging times and market fluctuations, recognizing the cyclical nature of our business. However, in recent years, increasing regulatory complexity, high operating costs and the inability to reliably access economically viable timber to support our manufacturing facilities has resulted in hundreds of millions of dollars of losses in our BC operations.” “The operating challenges we face have been further exacerbated by increases in the punitive US tariffs announced on August 13th – tariffs that are expected to more than double again next year. Continuing to operate under these conditions would prolong the punishing anti-dumping duties and put additional operations at risk. As a result, we are making the incredibly difficult decision to close our operations in Vanderhoof and Fort St. John.” “We are devastated by the decline in our province’s foundational forest industry, and we recognize the impact these closures will have on our employees and their families, as well as our First Nations partners, contractors, suppliers, communities and customers. We are committed to supporting our employees and will work with our union partners on an employee transition plan, including severance. The wind down of operations is expected to be complete by the end of the year.” 🔗 https://lnkd.in/dRmr9AwX #lumber #timber #forest #tree #wood #woodwork #woodworker #carpentry #logging #woodworking #lumberyard #foredbc