Hancock’s ROC market watch / special pricing announcement. Our Retail Operations Center (ROC) team wanted to update our customers with a market watch with respect to the Softwood Lumber Agreement, price increases, and the current volatile market conditions.
The lack of a Softwood Lumber Agreement with Canada has created turmoil and volatility in the market. Specifically, the effect on the KD SPF market has been dramatic, with major price increases being seen. This uncertainty has also led to volatility in other lumber species and sheathing products. The last agreement expired in 2015 and there was a 1-year period where neither side could request any litigation. The United States has since accused the Canadians of dumping product into the US below normal market cost. The US has filed suit and wants to penalize Canada by charging a tariff on wood coming from Canada and making it retroactive 90 days from the time the ruling was printed in the Federal Register. We may see this happen in late April or early May this year, making the tariff retroactive to February 1st 2017. The Canadians are refuting the claims by the US and are raising prices to protect their margins, should they end up being penalized for wood shipped in February.
Below, please find current market price increases to help you plan with your customers. Prices are still escalating and volatility will remain until an agreement is reached. This is a confusing time for all of us seasoned suppliers and builders, but we are watching this closely and will keep you in the communication loop. If you have any questions about the current market conditions, please feel free to contact Bart James, Hancock’s Purchasing Manager: firstname.lastname@example.org.
Stay connected with updates from Hancock Lumber’s retail operations center by reading our quarterly newsletter, the Builder Buzz. Find past issues of the Buzz online: www.hancocklumber.com/BuilderBuzz