The lumber industry has seen its ups and downs with pricing over the last couple of years, and Denver lumber is no different. There are various factors that directly and indirectly cause unpredictable swings. Over the last year, the most impactful events that have driven up the price of lumber in the U.S. is the initiation of import duties on product from Canada. To cover these new duties, Canadian exporters increased the price of lumber in the U.S.
In 2017, the United States saw an extreme increase in the demand for housing. These price increases have reduced lumber output and shipment, which has put home builders in a sticky situation. Unable to cover these higher prices up front, builders have had to increase their prices as well. Consumers are experiencing a lot of frustration when they are paying inflated prices, but the completion of their projects is also taking longer.
It appears that the 2019 Denver Lumber market will continue to be plagued with higher prices. Consumers can keep an eye on the following variables to stay abreast of the situation:
Chapter 19 of the North American Free Trade Agreement
As previously mentioned, these tariffs are playing a major role in the lumber industry, and the effect is being felt in Denver as well. The final outcomes will not be known until the Trump administration finalizes negotiations to shut them down.
To review, the U.S. government imposes antidumping and countervailing duties on Canadian products shipped to the U.S. This directly affects softwood lumber. Under Chapter 19, Canada can bypass the judicial review process. Since Trump has entered his presidency, his administration is working to eliminate it all together. This has obviously ruffled Canada’s feathers as this would come at a great cost to them.
If you are interested in purchasing some lumber, but don’t want to wait for the prices to continue inflating, give us a call! We offer competitive pricing to consumers!