Lumber, plywood prices skyrocket

New York Times via Houston Chronicle ^ | May 1, 2004 | BERNARD SIMON

[winodog]

You are correct. Here in Vegas concrete is going up every three months with no end in sight. Supplies of bag cement is shrinking and my concrete company is not bidding large jobs, they are not taking new customers and there is talk of shutting down plants on sat. and maybe other days.

[DugwayDuke]

Actually, one of the factors in the high price of these lumber products are the 20% tariffs imposed on these lumber products from Canada. Of course, protecting jobs in one sector generally means harming jobs in another. In this case, we protected loggin jobs and now were hurting construction jobs. Of course, we're also hurting any one who wants to build or buy a house. Just one more example of how tariffs harm everyone. But, don't tell that to the anti-free trader freepers who are always clamoring for tariffs to protect "American Jobs", usually theirs and to hell with everyone else.

[Katya]

I have neighbors that built a straw bale house...it's gorgeous and very fire retardant as the bales are encased in concrete with a stucco finish, that supplies little to no air. The walls are very thick, like old stone houses, and they save a bundle on heating and air conditioning now. The materials in essence were unbelievably cheap since they used wood framing minimally, and bales of hay in that quantity cost them under two bucks each.

[snopercod]

20% tariffs imposed on these lumber products from Canada

Thanks for reminding me. There are a couple of older threads on this that need to be revisited:

U.S. Tariff Put on Lumber From Canada Saturday, August 11, 2001.

U.S. Puts Tariff on Canadian Lumber Amid Allegations of Unfair Subsidies, March 22, 2002.

[snopercod]

I think the "Bush tariff" is still in place (See previous links). But maybe not for long. When I checked, I found this:

U.S.-CANADA PARTNERSHIP FOR GROWTH WELCOMES NAFTA RULING, RENEWS CALL FOR LUMBER TARIFF SOLUTION

WASHINGTON, DC – April 30, 2004 – The U.S.-Canada Partnership for Growth today welcomed a North American Free Trade Agreement (NAFTA) Panel report, the latest in a series of rulings which have indicated that the heavy tariffs imposed on Canadian lumber are unwarranted.

“The NAFTA decision gives those who believe in healthy, mutually beneficial, rules-based trading arrangements a signal that we should end this harassment and drop the tariffs,” said Senator William E. Brock, co-chair of the U.S.-Canada Partnership for Growth and former United States Trade Representative. “They are unfair, and cause harm to the biggest trading relationship in the world.”

This is not the first time that legal actions by the U.S. lumber lobby have been rejected.

On May 22, 2002, the U.S. government, through the International Trade Commission (ITC), determined that that the U.S. softwood lumber industry was threatened by reason of alleged subsidized and dumped imports of softwood from Canada. This led to the imposition of countervailing (18.79 percent) and anti-dumping duties (8.43 percent).

On September 5, 2003, the NAFTA Panel ordered the ITC to reconsider its original findings in a manner consistent with U.S. law. On December 15, 2003, the ITC reaffirmed its original position. In yesterday’s report, the Panel found that the ITC determination continues to be unsupported by the evidence. As a result, the Panel has given the ITC 21 days to issue a new determination that is consistent with U.S. law.

Governor Jim Blanchard, co-chair of the U.S.-Canada Partnership for Growth and former U.S. Ambassador to Canada, noted, “the U.S. and Canada enjoy the largest trading relationship in the world, almost $1.3 billion each day. Canada buys more U.S. goods and services than any other country in the world, 37 of the 50 states list Canada as their number one customer, so this relationship matters to America’s self interest. We need to take this ruling seriously, and respond in a way that restores harmony to this important relationship.”

[snopercod]

Concrete might be easier and would definitely last longer.

Ever see those machines that lay borders for flower beds and such? I think they are called "Mud Mules" or something. Quick and inexpensive.

[Bon mots]

I learned long ago, the best houses are made of bricks.

[DugwayDuke]

It's not just the amount of the tariffs, but their indirect effects. I understand that in the last couple of years, these tariffs have increased material prices to the point where over a hundred mills closed down. Now, with the war in Iraq and overseas demand, the closure of these mills have resulted in a classic supply and demand squeeze. It's a classic case of the fallicy that tariffs will result in prosperity for all. Also, it's just like the effects of the steel tariffs that also resulted in higher prices and the loss of jobs thru plant closures.

[WIladyconservative]

I filled up 3 gas cans and my truck for $37. Our gasoline taxes are the 2nd highest in the country . . . .

And have you priced copper pipe lately? In March I got a 10' length for $1.99. Today it's marked at $3.49.

Heard there's a concrete shortage, too!

Oy.

[petercooper]

thanks, I'll check it out

[moehoward]

"I got undercut buy a guy who came in 250k less then me on a large remodel[my price was just under 750k]. The next guy was 150k over me. The customers took the low ball, and the job cost nearly twice my bid, and took twice as long as I had projected. Live and learn."

Figured, you were the enemy, (kidding). I actually went with a neighbor who worked for the developer that built the house originally. He lives across the street and I knew he would have to look at whatever he did so he would do a good job. He did. BTW his bid was the highest, and we are happy with the result.

[upcountryhorseman]

Don't count on it! What about the cost for re-bar?

[tm22721]

Buy gold it is in a dip.

BUMP