Western Pallet Magazine December 2018 | Page 15

APRIL 2016

OVTOBER 2016

In October, prices for softwood lumber in U.S. drops 10.3%

In October, prices for softwood lumber in the U.S. dropped 10.3% - the largest decline since May 2011, according to the Producer Price Index (PPI) release by the Bureau of Labor Statistics, as reported by Lesprom.com. The producer price index for softwood lumber has fallen 21.2% since setting the cycle and all-time high in June. Even after the decrease, however, the index currently sits just 4.7% lower than the prior-cycle high set in 2004, reported the National Association of Home Builders (NAHB).

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“The allegation that softwood-faced plywood importers are circumventing the Chinese hardwood plywood AD/CVD orders is simply wrong because the Department of Commerce already found that softwood-faced plywood is expressly excluded from the AD/CVD cases.

“While tariff dodgers do exist, they represent a small population of those engaged in global trade. In reality, the majority of those engaged in trade are good actors despite the complex and rapidly changing environment.

“Tariffs are taxes. They are paid by American families, farmers, businesses, workers and communities. They are not paid by the exporting country. They are paid here at home.”

Chinese Plywood Plants Return to Production

Last year, more than 3,000 Chinese plywood plants were forced to close while dozens of bigger ones were frequently forced to cut production, in efforts to reduce pollution.

According to the South China Morning Post, however, many, if not all, of the plywood plants have come back to life this year as Beijing has swept aside its more demanding requirements to reduce air pollution.

This year the aim is for a 3 per cent cut in PM2.5 emissions – a fraction of the decrease a year earlier and below the 5 per cent initially proposed.

Ministry spokesman Liu Youbin said this year’s targets did not mean China had lowered environmental requirements. They were, rather, “realistic” and “challenging” goals after big improvement was made last year.

The change – against the background of a slowing economy – followed complaints from employers and the public that production suspensions and plant closures disrupted operations, while the replacement of coal heating with gas by some local governments left many poor families without heat last winter.

DECEMBER 2018