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Canadian Lumber Stockpiling

KenHill3 | Posted in Business on August 14, 2002 06:43am

I live in a port city (Olympia, Wash.), and I noticed that there was a tremendous amount of lumber stocked in the port’s storage yards. Apparently has been there for a little while. I’m fairly certain this has something to do with the new tariff.

Has anyone else noticed this phenomenon, and has anyone felt a rise in lumber prices yet?

Ken Hill

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  1. Sancho | Aug 14, 2002 06:50am | #1

    No but Ive been getting a great price on 1/2 balitic birch and 3/4 shop birch ply recently...

     Darkworksite4: When the job is to small for everyone else, Its just about right for me"

  2. User avater
    observer | Aug 14, 2002 07:46am | #2

    There was a brief period between the final determination of the duty and it's application and a considerable amount of wood was shipped, presumably distributors stocking up before the increased price took effect. That may be the reason.

    1. Adrian | Aug 14, 2002 06:17pm | #3

      Yeah, it is.....I can't remember the numbers, but a huge volume of lumber passed through during the window. Funny, but the initial impact of  the tariffs was the temporary closure of a bunch of American mills, including two of Rusty Woods, head of the Coalition for Fair Imports...sorry for his people, but as for him personally, couldn't happen to a nicer guy.

      Now the window is closed, there's a whole lot of B.C and Quebec lumber moving around looking for homes, throwing the whole Canadian industry out of whack. I don't expect Canada's winning eight out of nine points at the WTO recently to change that sooon.cabinetmaker/college instructor. Cape Breton, N.S

      1. User avater
        observer | Aug 14, 2002 08:10pm | #4

        Nor will the finding by the WTO that the Byrd Ammendment that allows the distribution of tariffs collected to the complainants as an unfair trade practice.

  3. PostnBeam | Aug 19, 2002 07:03am | #5

    Ken, rumor today that canadian softwoods will be up 6-9% in the next few months, so here is the knee -jerk reaction. Is that lumber down at the Port now? , or a month ago?

    1. KenHill3 | Aug 19, 2002 07:50am | #6

      P'n B-

      The lumber stocked at the Port of Olympia was pointed out to me a week ago by a friend who works down at the Farmers' Market, right next to the Port. Seems that he said it had been there a few weeks.

      Hey, POSTNBEAM, another Olympian you are? Frequent poster here Jim Blodgett lives in the area as well.

      Self-employed for now, last worked for Erwin and Associates out of Tumwater. How's bayou?

      Ken Hill

      1. PostnBeam | Aug 19, 2002 07:59am | #7

        Yeah, came back to Oly after a few year stint in Colorado. (Too$$$) On my own....Going well...Need to find some great subs though. Got alotta work, but taking the time to find the guys who love to do thier respective trades. Went down to OMB and got a lot of info. Know of anyone?? How about a coffee or brew sometime? Had a great chuckle on teh Mag 77 thing by Jim.

    2. jet | Aug 19, 2002 09:53pm | #8

      You can bet your bottom dollar they will say it's today's load (when ever that will be) and charge the highest price available. They being the port authorities and not the suppliers. bottom  line is the gouvernment will get the difference and the consumer will pay.

      1. Mooney | Aug 20, 2002 04:02am | #9

        Its not unusual to buy lumber in advance forseeing an incline in prices. Many lumber buyers stock up in winter months only to sell at top spring prices. I used to manage a lumber yard and I was told to buy in winter pricing if there was enough cash flow. The lumber is probably "sold" waiting shipment, if not its speculative.

        Tim Mooney

        1. User avater
          BossHog | Aug 20, 2002 02:05pm | #10

          I've worked at truss plants that do this also - Buy in a big way when they think prices are going to go up.

          But it's like playing the stock market - Sometimes ya win, sometimes ya don't. At about $10,000 a truckload, you can't afford to sit on a whole lot of inventory for too long.

          Life is full of uncertainties...or I could be wrong about that?

          1. PostnBeam | Aug 20, 2002 07:42pm | #11

            WW-

            I have to agree with B Hog and TIm, I know a few of the buyers around here and that's what they are doing. Reason I was asking Ken was to see what mill they came from. Have a few friends that are out of work right now up in the "attic" (B.C.) due to the mill/tarrif/gov't thing. It's funny how there has only been a few articles around here (Puget Sound) compared to the front page news up there.

            On a personal note..It IS the most beautiful lumber to work with as far as framing goes, compared to the hem-fir junk lately. 18 and 20' 2x12 rafters with the biggest knot about a quarter. I might kick 2-3 pieces off a bunk for blocking, etc. Subs love to drill it, drywall is perfect, nails sweet, etc. etc. I'm sure that's what others said about our wood 20 years ago.

          2. HeavyDuty | Aug 20, 2002 08:56pm | #12

            >>But it's like playing the stock market - Sometimes ya win, sometimes ya don't

            I agree with you but a lot of people don't see this though. If you want to speculate on lumber, may as well go to the futures market where you don't have to stockpile.

            Tom

          3. 4Lorn1 | Aug 28, 2002 07:14am | #13

            Some of the prettiest studs I have seen in some time came from Sweden. I was in HD where they had stacks of it. Many pieces had no knots. The rest only a few small ones. No wane splits, twist. Most dead straight with only a few with the slightest of bows.

            One builder bought 4 complete bundles, it was all he could afford at the time, while telling me that he didn't have a job to use them on. He said he hadn't seen them this nice in decades and would save them for critical jobs.  

          4. Mooney | Aug 28, 2002 02:07pm | #14

            wow! I shall check myself . Thanks ,

            Tim Mooney

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