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Price of Lumber

Old 03-21-2018, 01:34 PM
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Default Price of Lumber

Anyone follow the price of lumber and know why it is increasing? I priced out 2x4's for a project a couple of month's ago and the 8' went from $2.56 each then to $2.78 later and now today at $3.05. Will this trend increase and I should buy now? Is it a seasonal increase and will come back down?
Old 03-21-2018, 01:37 PM
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I just paid 2.65 but I have been buying a lot of lumber for my barn from one supplier so maybe they are just giving me a good deal as I have more projects in the works on the property
Old 03-21-2018, 01:39 PM
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where are you that your paying that ? here a #2 premium treated yellow pine is 8.00 16ft
Old 03-21-2018, 01:43 PM
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84 lumber and this was 2x4x8
I can pull the inv and tell you what I'm paying for everything as I am using all kinds of dimensional lumber
Old 03-21-2018, 01:52 PM
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Lumber and plywood are commodities with varying prices. Most wholesale lumber is sold by the 1000 board feet. For instance a 2X6 is 1 bd,ft. per linear foot. Virtually all is visually graded.
Old 03-21-2018, 01:56 PM
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There was a tariff on Canadian lumber that went into effect.

https://www.washingtonpost.com/news/...=.b5514f267959


The United States is moving forward with new import duties on Canadian softwood lumber, the Commerce Department announced Thursday, escalating a long-running spat between the two countries at a time when the Trump administration is working to redefine the two countries’ trade relationship.

The Canadian government threatened to retaliate through legal action of its own under international trade agreements.

Most Canadian lumber producers would pay a combined tariff of 20.83 percent — down from a 26.75 percent duty proposed in an earlier preliminary decision. A handful of Canadian firms would be required to pay slightly higher duties.

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The Commerce Department said the decision followed a failed effort to settle U.S. claims that Canadian firms are selling lumber in the United States at unfair prices, and doing so with the help of government subsidies.

“While I am disappointed that a negotiated agreement could not be made between domestic and Canadian softwood producers, the United States is committed to free, fair and reciprocal trade with Canada,” Commerce Secretary Wilbur Ross said in a statement.


The decision comes as trade relations between the North America neighbors are already on edge.

Negotiators from the United States, Canada and Mexico failed to reach an agreement to revise the North American Free Trade Agreement (NAFTA) last month, a trade pact that Donald Trump as a candidate said he would rip up.

Prime Minister Justin Trudeau threatened to cancel a previous proposal to buy Boeing F-18 Super Hornet fighter planes over an earlier trade dispute that imposed 300 percent tariffs on Canadian commercial jetliners. And Trump has separately criticized Canada for hurting the U.S. dairy industry.

The Canadian government described the Thursday action as “unfair, unwarranted and deeply troubling.”

“We will forcefully defend Canada’s softwood lumber industry, including through litigation, and we expect to prevail as we have in the past,” Canadian Foreign Affairs Minister Chrystia Freeland said in a statement. “We are reviewing our options, including legal action through the North American Free Trade Agreement and the World Trade Organization, and we will not delay in taking action.”


[ ‘Another bad act on the part of the Canadians’: Trump administration launches punitive tariffs on Canadian lumber ]

The dispute dates back to the 1980s, when formal charges were first filed, and has flared up intermittently through petitions filed by U.S. firms. In some cases, the two parties have been able to negotiate settlements that effectively raise the price of Canadian imports, but the last agreement expired in 2015.

In the most recent tariff petition, filed in December 2016, a coalition of U.S. lumber firms pointed to mill closures, layoffs and falling market share as evidence that the United States has been harmed by Canada’s trade practices. They pointed to a Canadian government loan program called Export Development Canada as evidence that Canadian firms are subsidized.

The tariff is still awaiting a decision from the International Trade Commission, a quasi-judicial U.S. agency that has the final say on trade disputes. But Thursday’s decision marks a critical hurdle in the government’s process for imposing tariffs, and the failure to broker a settlement leaves opponents with few options.


[ In Canadian lumber town, real fears over a trade war with Trump ]

The import duties are small enough that Canadian suppliers will probably be able to continue selling in the United States. But free trade advocates are worried that the Commerce Department’s decision to impose varying tariffs on specific Canadian companies could skew the U.S. lumber market by privileging some firms over others.

Montreal-based Resolute Forest Products, for example, faces a smaller 17.9 percent tariff that could help it undercut its Canadian competitors.

“The companies with the highest rates are going to have a really hard time finding U.S. companies to do business with; Home Depot isn’t going to want to buy from them,” said Dan Ikenson, a trade expert with the Cato Institute.

Others are worried that extra taxes on imported Canadian lumber could kneecap the U.S. construction industry at a time when it is still in recovery mode.

The tariff decision could also hurt U.S. home builders, who already saw stock prices tumble Thursday morning on the revelation that the GOP tax bill would slash the mortgage interest tax deduction for new home loans, something Americans have relied on for years to lessen the cost of buying a home.


The government estimates that the United States imported $5.66 billion worth of Canadian lumber in 2016, a key building material for U.S. builders.

“By raising the price of Canadian lumber imports the Trump Administration is effectively raising the cost of building things, and there are lot of Trump voters who work in the construction industry,” said Lee Branstetter, a fellow at the Peterson Institute for International Economics. “By artificially jacking up the price of this key input we are effectively dropping a two-by-four on our foot.”

Read More:

Boeing took a foreign firm to task over subsidies. Critics say Boeing gets help, too.
Old 03-21-2018, 02:08 PM
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The Framing Lumber Composite Price of lumber is as high as I can ever remember it. . Several things going on including log shortages, domestic demand, exports, and transportation costs. It's a perfect storm. Same thing going on with structural panels.
Old 03-21-2018, 02:26 PM
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So, if I'm sitting on a few acres of saw timber, might be time to cut?

.
Old 03-21-2018, 02:54 PM
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Originally Posted by FishLife View Post
So, if I'm sitting on a few acres of saw timber, might be time to cut?

.
A few acres? Don't get your hopes up. At least 20 acres - you should talk to a couple of local Foresters.

I have been seeing pretty good prices in North Florida for small logs and pulpwood. Grade sawtimber is good but still about $0.80 on dollar of what it was during building boom and Katrina.
Old 03-21-2018, 03:09 PM
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Originally Posted by ol guide View Post
where are you that your paying that ? here a #2 premium treated yellow pine is 8.00 16ft
$10.00 here
Old 03-21-2018, 03:15 PM
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Does demand from hurricane damage play a roll?
Old 03-21-2018, 03:42 PM
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Originally Posted by Lorne Greene View Post
There was a tariff on Canadian lumber that went into effect.

https://www.washingtonpost.com/news/...=.b5514f267959
That pretty much sums up the increases, with many more increases to come.
Them Canadians ain't all stupid.
Old 03-21-2018, 04:12 PM
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Southern yellow pine (SYP) is used for trusses, poles, and pressure treated lumber primarily.
Old 03-21-2018, 04:37 PM
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I'm a purchasing agent for a lumber company. Prices have started to stabilize & some cases fall in the last 2 weeks. Spruce (framing lumber) & plywood are dropping the least. Prices might continue to drop or could be just a blip. Just a crap shoot right now.

As said, lumber is a commodity & reactions in the market can be the same as stocks or bonds. While there are a lot of reasons for supply shortages, sometimes it's just an artificially created shortage & sometimes its real.

Restrict the supply while demand is good & the price goes up.
Old 03-21-2018, 04:42 PM
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Lumber is a commodity just like oil. gold. and others. It fluctuates...

You want to follow it weekly, get a subscription to "Random Lengths".
Old 03-21-2018, 04:52 PM
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I've seen plywood prices double in a month. Big chunks of homebuilders profits disappear quickly. Roof deck cost just went up $1000.oo.
Old 03-21-2018, 05:04 PM
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Fixin to have timber cut on my property. There’s no shortage that I know of many if the mills here in sw ga are limiting the amount of intake on a daily basis. Prices aren’t that good but better than they were. Lot of timber due to storm damage and people cutting due to drought and nettle damage
Old 03-21-2018, 05:08 PM
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Nothing to do with a Canadian lumber tariff, more to do with the fact that Houston, Florida, and Puerto Rico are taking every piece of Lumber they can get their hands on. I have bids that have doubled in material price due to this. My 3 suppliers are screaming for stock, the local yards can't keep up. We've been supplementing the difference with German softwood.

https://www.theglobeandmail.com/repo...ticle36049782/

Last edited by Seafox257; 03-21-2018 at 05:13 PM.
Old 03-21-2018, 05:15 PM
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All I know is the price of poplar at the home stores is now insane! Use to be affordable.
Old 03-21-2018, 05:18 PM
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Originally Posted by Locke N Load View Post
Anyone follow the price of lumber and know why it is increasing? I priced out 2x4's for a project a couple of month's ago and the 8' went from $2.56 each then to $2.78 later and now today at $3.05. Will this trend increase and I should buy now? Is it a seasonal increase and will come back down?
cost of living,fuel going up? ;?

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