The Globe and Mail reports in its Thursday edition that even though President Donald Trump claims to put "America First," his actions, however, are having the opposite effect in the U.S. lumber industry. A Bloomberg dispatch to The Globe reports that this year the U.S. slapped
duties of as much as 32 per cent
on imports of timber from Canada. Prices surged,
increasing costs for American
buyers -- and boosting profit for
Canadian producers.
Canfor
and West Fraser Timber
are outperforming their American
peers with share gains of more than
40 per cent this year, placing
them among the top performers
on the Bloomberg Intelligence
global paper and wood products
index. By contrast, shares of U.S.
rival Weyerhaeuser are up
about 10 per cent. Lumber futures jumped 16 per
cent in 2017 as U.S. trade limits
and Western wildfires spark concerns
over limited supplies, just
as communities in Texas and Florida
begin to rebuild after devastating
hurricanes in the past
month. That means more gains
ahead for Canfor and West Fraser,
which have more exposure to
softwood-lumber prices than
their American peers. Pictet Asset Management manager Christoph Butz says, "There is no way lumber prices
can nosedive."
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