b'34American Journal ofTransportation ajot.com(IMPOSEDcontinued from page 30) identialbuildingconstructioncosts, withitslongstandingstumpagefeemeanwhile,increasedonly1.5%in regime.Eliminatingunfairly-tradedthesecondquarter,suggestingthat Canadian imports remains a prioritythe price of lumber factored into theHWYH2O.COMfor the Biden administration. increase in residential building costs.Tais office further stated: We areFurtherproofcomesfromthe prepared to discuss another softwoodNational Association of Home Build-lumberagreementwhenCanadaisers, which reported that, in the U.S., ready to address the underlying issues2023 has seen a continuing trend of related to subsidization and fair compe- slowingpricegrowththatbeganin tition so that Canadian lumber imports2022but that trend did not apply do not injure the US industry. tolumber.NAHBsProducerPrice The U.S. Lumber Coalition reactedIndex (PPI) gained 0.5% in the first to Ngs statement, saying it was pleasedhalf of this year and has not increased Canadawastakingthedisputeto1%orgreaterinanymonthsince the US Court of International Trade,March 2022.ratherthanrequestingaUnitedThegrowthratesoftheindex States-Mexico-CanadaAgreementforfinaldemandgoodshasslowed (USMCA) panel for appeals. 12 consecutive months, which hasnt The Coalition has long believedoccurredsincetheinceptionofthe thatU.S.courtsaretheappropriateseries,notedDavidLogan,direc-venueforresolvinglegalquestionstoroftaxandtradepolicyanalysis around the application of U.S. tradeat NAHB. The PPI for goods inputs laws,andwearepleasedthattheto residential construction, including Canadianpartieshavenowagreedenergy, has decreased 3.6% over the to pursue their claims before a U.S.past 12 monthsthe largest 12-monthW I T HOOUURR N E WAANNDDjudge,saidAndrewMiller,Chair- decline since October 2009. I M P R O V E DGGAATTEEWWAAYYman of the U.S. Lumber Coalition and CEO of Stimson Lumber. C anadas oftwoods I N C E N T I V E ,TTHHEERREE HHAASSWhile the Coalition is continu- But the PPI for softwood lumber,N E V E RBBEEEENN AA BB E T T E RE T T E Ringtoevaluateitsownissuesforimportant in residential construction,T I M ETTOO SSTTAARRTT SS PP PNNHHI I P I I GGappeal, we look forward to defendingincreased3.9%inJune,represent- O NTTHHEE GGRREEAATT LL A K E SA K E Sthe Department of Commerces anti- ingthesecondincreaseoverthreeW I T HHHWWYY HH OOdumping determination as consistentmonths.Thatcontraststodecreases2with U.S. law, added Miller. in prices for gypsum, which also fell Hehasalsostressedthatthein AprilandMay,andsteel,which import duties have been keeping thefell 0.6% in June, after a four-month playingfieldleveltoallowtheUSstreak of higher prices, while concrete domesticforestryandconstructionprices increased 0.5% in June. Freight industries to thrive. Failure to fullyprices, its also worth noting, fell in enforcethetradelawswouldonlyJune across the board, for truck, rail, underminelong-termconfidenceinand ocean. expandingcapacityandjobsintheCanadasupplies80%ofU.S. moorreeiinnffoorrmmaattiioonn::American softwood lumber industry. softwood lumber imports, accordingFor mto Natural Resources Canada, a Cana- E ail [email protected] nCreasede uropeans ourCing dian government department. DuringemMeanwhile, Derek Nighbor, pres- the first quarter of 2023, the provinces ident of the Forest Products Associa- of Alberta and Quebec accounted for tion of Canada, has raised what he has44%oftotallumbershipmentsand called a disconcerting trend in bilat- 45%oftotalproductionandthose eral trade. Rather than sourcing fromtwoareashavebeenthehardesthit Canada to address the existing Ameri- by wildfires. In other words, the wild-canlumbersupplygap,Europeanfires are affecting a meaningful share lumberimportsarenowdisplacingof Canadas timber harvest.Canadian lumber imports as a result,The price of lumber continued to of the ongoing Canada-U.S. softwoodrisethroughmid-July,accordingto lumber dispute. TradingEconomics,whichreported In2022,wewitnessedoffshoreprices at that point 33.5% higher than exports of lumber to the U.S. reach theirin early May. Prices retreated some-highestlevelssince2004-2006withwhatin August,because,according increased shipments from Germany andtotheMadisonLumberReporter, Swedenincreasingby17%and27%At this time of year it is normal for(BENEFITcontinued from page 32) OakleyterminalinLittleRock, respectively. In fact, European lumberconstruction activity to slow down asadd capacity of 250,000 tons. Arkansas, before being shipped south exports to the U.S. have more than dou- folkstakeoffforthelastvacationsEnvivaalsohasplanstoexpandto Louisiana for loading on oceango-bled since February 2021. beforeLaborDayandbacktofull- itscapacityatAhoskie,N.C.,froming vessels, according to Matt White, Its worth noting as we find our- time work in September.436,000tonsto571,000metrictonsa Drax executive vice president. The selves in the sixth year of the currentBut as of the end of the first weekper year. The company has applied to,pellets are used at Draxs power sta-softwood lumber dispute that the U.S.of September, lumber prices were stillamongotherthings,reconfigurethetion in Selby, North Yorkshire, which chargesnodutiesonthatimportedin retreat, a sign of a possible slow- wood yard, add hammermills for saw- suppliesfivepercentofEnglands European wood. downintheresidentialconstructiondust production, increase drying capac- electricity needs. sector, a phenomenon already beingity, add two new pellet mills, and addDraxs conversion of its UK power seen in Canada. The signs are prom- gas-fire boiler capacity to provide thestationtobiomassfromcoalrepre-(WILDFIREScontinued fromising for the Canadian economy over- steam for the pelletizing process. sented Europes largest decarboniza-page 33) all, but the construction industry facesDrax,apowergenerationcom- tionproject,saidWhite,reducing inQuebecduetonearbyfiresandlingeringchallenges,saidPatrickpanybasedintheUnitedKingdom,emissions from Draxs power genera-relatedlogshortages.ResolutealsoRyan, an executive vice president atand which owns 14 operational pellettion by 90% since 2012.paused harvesting activities in areasLinesight, a construction consultancymills in the U.S. South and WesternDraxplanstodoubleitspellet near the wildfires. based in New York. The constructionCanada, is expanding its plant in Rus- production capacity to eight-million Thatsbeentrueelsewhereinindustry is expected to shrink by 5.2%sellville, Arkansas, to add 40,000 tonstonsgloballyby2030tomeetits Canada as well, according to the FEA,in 2023 as the residential sector hasofcapacity.Thecompanybroughtownrequirements,andthoseofits whichreportedthatascatteringofdeclined more than expected.onlinea360,000-tonpelletplantincustomers in Europe and Asia. Drax mills closed temporarily and that theAsforlumberprices,theyDemopolis, Alabama,anda40,000- also plans to deploy a new negative fires altered some harvest plans. achievedstabilityearlierthisyeartonsatelliteplantinLeola,Arkan- emissionstechnologytoeliminate InlateJuly,StatisticsCanadaafter two years of volatility. Pricessas, in 2022, and, in December 2022,carbonfromthepelletproduction (StatCan)reportedthatconstruc- pickedupduetothewildfires,announceda$50millionexpansionprocess.Thetechnology,knownas tioncostsforresidentialbuildinginsaidRyan.Pricesmayappreciateto its facility in Aliceville, Alabama,bioenergywithcarboncaptureand acompositeofelevenmetropolitanslightlyinthecomingmonths,butto boost to its wood pellet productionstorage(BECCS),will,according areas climbed 7.5% year-over-year inthe trend in coming quarters looks tocapacity by 50%.to White, permanently remove mil-the second quarter of 2023, led by abe one of weakness due to the hous- The pellets produced by the Draxlions of tons of carbon dioxide from 13.0% increase in Toronto. Non-res- ing downturn. plantsaretransportedtotheBrucethe atmosphere.'