Replies

1. 
   bill_1010 | Apr 03, 2002 11:20pm | #1

   It may have something to do with a tariff on lumber from up north of the border.

1. 
   JIM4890 | Apr 05, 2002 09:05pm | #6

   Bill,

   New tarrif is on softwood only.

1. 
   Danford_C_ | Apr 05, 2002 09:18pm | #7

   True but, most plywood's core is made of softwood, "hardwood" ply refers to it's face...

   Dano"Form and Function are One" - Frank L. Wright

1. 
   JIM4890 | Apr 05, 2002 09:24pm | #8

   ok, I'll accept that....so how would you tax/tariff it...as hardwood or softwood... finished product I would consider is hardwood plywood, so I suspect that it exempt. ??

1. 
   kartman0 | Apr 06, 2002 03:46am | #9

   I find this bitterly amusing. Why? Because plywood from overseas is not a finished/complete product like a car, home, etc. I compare this to buying a high-end projector from Japan. Because a $5K projector for one's Home Theater is considered a 'component' in a much larger product there are no tariffs.

2. 
   Danford_C_ | Apr 06, 2002 04:37am | #10

   Jim,

   Touche.  I do know that here in the Pacific Northwest, a vast fleet of Japanese "processing" ships are achored just in International waters, we "export" the logs, we "import" the finished product.

   Frankly, I suspect the lumber companies are learning from the oil companies.  The American lumber companies cried "foul" for the Candians "dumping" said they couldn't compete with their prices, lobbied for the tarriffs, they went into effect, and then they immediatly raised the lumber prices by 20%.......

   Dano"Form and Function are One" - Frank L. Wright

3. 
   observer | Apr 06, 2002 06:57am | #11

   The good trick Dano is that the US is charging 29% duty on Canadian softwood and turning that over to the southern producers that filed the complaint. Not only do they benefit from the 20% price increase (with no associated increase in costs), they also pull in every nickel charged in duties. Good time to be in the lumber business.

   I've heard that 600,000 potential American home buyers have been knocked out of the market by the lumber price increase. I know that it is having a substantial effect on the Canadian economy. You remember us - we're your partners in free trade.

4. 
   Danford_C_ | Apr 06, 2002 06:44pm | #12

   Dick,

   I certainly hope you don't think I condone this...I'm not happy about this one single bit nor am I proud of what our government has done.  I wish our Congressmen and Senators had the gonads to outlaw PACs and "special interest" groups instead of just talking about it, though I sincerely doubt I'll live to see the day when that happens.

   Dano"Form and Function are One" - Frank L. Wright

5. 
   observer | Apr 06, 2002 08:31pm | #13

   Sorry Dano, I didn't think that you did. It's a very touchy subject in my neck of the woods and the steam escapes the lid every now and then.

   I don't think the problem will go away quickly; after all, it has been going on for well over a hundred years. Most people in B.C. do realize that you guys are also getting the boots put to you to by your political process. Unfortunately, you will also bear the brunt if my government actually screws up it's nerve and applies some retaliatory tariffs to energy.

   Edited 4/6/2002 1:32:55 PM ET by Dick

6. 
   Danford_C_ | Apr 07, 2002 04:36am | #14

   Dick,

   Really, there's no need to apologize, I know how you feel.  I live practically smack dab in the middle of the PNW's timber industry, what's left of it.  Frankly, I wouldn't blame you folks if you did retaliate, you should...

   Dano

   "Form and Function are One" - Frank L. Wright

2. 
   JeffinWI | Apr 04, 2002 01:05am | #2

   Look at it this way.......at least the quality will (probably) be worse!  IMHO, over the past few years, just about all wood has had a significant increase in cost for a worse product.  Even the last two sheets of Baltic Birch I ordered were WAY twisted.  Lickily I needed small enough pieces that is was o.k.  Very disappointing. 

1. 
   sschefer | Apr 04, 2002 10:11pm | #3

   It's good and bad to hear that I'm not the only one discouraged by the prices and quality. Who do you suppose would have an open ear to our complaints ?

   Steve - in Northern California

1. 
   bill_1010 | Apr 05, 2002 04:22pm | #4

   probably that brick wall over yonder. :-(

3. 
   jeffn7 | Apr 05, 2002 07:43pm | #5

   I don't know what is driving the price fluctuations in this case, but broadly speaking, forrest industry products are commodity items and in North America there is cyclical price movement based on when the Canadian producers are able to harvest product and when they actually ship it to the States.

   To elaborate, the canadian producers harvest in the summer months and build up inventory. In the winter months, when they can't harvest, large amounts of built up inventory flood the US market. Combine this with slack demand in winter months (less homebuilding) and you can predict prices falling. Summer demand heats up, inventories work out the slack and prices rise. This year we experienced a mild winter and strong homebuilding, so inventories were probably worked out quickly and prices spiked prematurely. It's been a while since I studied these markets, so my comments should be considered speculation.

   
   

   ---

   Edited 4/5/2002 12:47:30 PM ET by JEFFN7

4. 
   finebuilder | Apr 08, 2002 08:43am | #15

   For what it's worth. Be carefull on lower prices cabinet-grade plywoods coming from South America.  Got a "good buy" on what looked like really nice 7 layer plywood.  Built 20 cabinet kitchen, installed, collected cash, left.(zip ahead two months) Customer calls; " somethings wrong w/YOUR cabinets"  I go right over. Every cabinet case has delaminated ( not my fault, but my responcibility).  Found out later after much finger pointing that the Brazilians thought that 20% was dry enough for core materials. Replaced the plywood for me, but I had to rebuild all the cases and reinstall kitchen gratis.  Buyer beware!

                                                            Miami