- The U.S. Commerce Department says it will seek to double tariff rates against most Canadian softwood lumber producers, raising the combined duties for most firms to 18.32% from the current 8.99%, despite current record high lumber prices.
- The Globe and Mail reports Resolute Forest Products (NYSE:RFP) and Canfor (OTCPK:CFPZF) would face even higher duties of 30.22% and 21.04%, respectively, while West Fraser Timber (NYSE:WFG) has a preliminary new rate of 11.38% vs. 8.97% previously.
- Other potentially relevant tickers include MERC, OSB, OTCPK:IFSPF
- ETFs: WOOD, CUT, NAIL, XHB
- The proposed rates are subject to further review over the next six months before final duties are set.
- Two-by-fours made from Western spruce, pine and fir reportedly sold last week for a record US$1,640 per 1,000 board ft., surging 340% over the past year.
- Despite the past week's pullback, Janney analyst Tyler Batory thinks "higher lumber prices are here to stay" because of a supply/demand imbalance.