A five percent reduction in the softwood lumber export tax (from 15% to 10%) begins tomorrow on shipments to the U.S. from B.C. and Alberta.
When the 4-week Random Lengths Composite Price average through May 11th triggered this lower export tax for the month of June, supplier quotes for June shipment within Canada sought a 5% increase. Meanwhile, quotes for June shipment to the U.S. have so far not reflected a 5% discount. With the possibility of a further five percent export tax discount in July, it’s understandable this transition has lent some confusion to trading this week, as markets search out new trading levels.