**edited headline to read "Wood Products" not "Softwood Lumber"
As if this uncharted new territory of the current North American lumber market and prices wasn’t confusing enough, Thursday Canada put duties on a wide range of US imports, including some wood products.
Canada intends to impose surtaxes or similar trade-restrictive countermeasures against up to C$16.6 billion in imports from the US.
Aside from steel and aluminum, notable wood products will have a 10% or 15% tariff starting on July 1, 2018.
(Madison’s thanks FPInnovations for the hot tip on this very important development)
Current Softwood Lumber Prices Compared to Recent and Historical Highs
“On May 31, 2018, the United States (U.S.) announced the imposition of tariffs on imports of certain steel and aluminum products from Canada (at the rates of 25% and 10%, respectively).
In response to these measures, Canada intends to impose surtaxes or similar trade-restrictive countermeasures against up to C$16.6 billion in imports of steel, aluminum, and other products from the U.S., representing the value of 2017 Canadian exports affected by the U.S. measures. The Government is also considering whether additional measures may be required.”
For more details click: https://www.fin.gc.ca/activty/consult/cacsap-cmpcaa-eng.asp
CREDIT: World Trade Atlas via FPInnovations
Another major change occurred this week, this time regarding the lumber futures trading board on the Chicago Mercantile Exchange:
There has been an edit to “Chapter 201 – Random Length Lumber Futures”
20102. TRADING SPECIFICATIONS
20102.D. Daily Price Limits
Lumber futures will move to +15/m Daily and +25/M expanded.
For more details click:
(Madison’s thanks https://twitter.com/THELumberGuru for the hot tip)
The below table is a comparison of June 2017 and June 2018 prices for benchmark dimension softwood lumber 2×4 prices compared to historical highs of 2004/05: