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TIMBER PRODUCTS November HT News Volume: 11/16/2017
Online Newsletter
Matt McGowan - WPM Program Manager
mmcgowan@tpinspection.com
mmcgowan@tpinspection.com
Office: 770.785.4769
Mobile: 678.480.2451
Mobile: 678.480.2451
For more information on the IPPC program
Please contact:
Matt McGowan
WPM Program Manager
Conyers GA
Office 770.785.4769
Mobile 678.480.2451
mmcgowan@tpinspection.com
The unauthorized and/or fraudulent use of the TP IPPC mark is illegal and a situation we take seriously. Anyone with information regarding the misuse of IPPC marks should contact TP's WPM Manager immediately. Thank you for helping to protect the integrity of the ISPM 15 program which is vital to our business and economy.
SYP Prices Remain High in October
As we noted last month, three significant factors recently converged to drive southern yellow pine lumber prices higher: western US wildfires, hurricanes Harvey and Irma, and a delayed decision from the US Department of Commerce regarding duties on Canadian softwood lumber. After spiking to nearly $420/mbf in early October, prices have receded but still remain high as we approach the end of warmer weather and peak building season.
While end uses for southern yellow pine lumber typically differ from much of the lumber produced in the fire-ravaged Pacific Northwest (PNW) and British Columbia, prices have nevertheless surged since Hurricane Harvey first made landfall. The composite southern yellow pine lumber price for week 42 was at $411/mbf, which is down from week 41’s price of $419/mbf. Week 42’s price is, however, 9 percent above its January 2017 starting point of $378/mbf, and 6 percent above the 2016 week 42 price of $387/mbf.
A closer look at some of the prices we have seen since the beginning of the year:
- YTD Peak Price: $440/mbf (April)
- YTD Low Price: $368/mbf (July)
- YTD Average Price: $399/mbf
- Average Price Since Tariff Announcement in April: $392/mbf
Courtesy of John Greene, Forest2Market
Happy Thanksgiving!
We will be closed November 23rd and 24th in celebration of Thanksgiving. We are very grateful for the grace, provision and protection we receive each day. We hope everyone enjoys this time as well with family and friends.
Canada Bound WPM Review
In 2005, an exemption was established for the movement of wood packaging material (WPM) from the U.S. to Canada. In speaking with Tyrone Jones, USDA Director of Forest Products, this standard works conversely between the two countries and for review, the exemption specifies in part:
- All WPM entering or transiting Canada except wood of U.S. origin entering from the U.S., must be heat treated or fumigated and be marked with an approved logo (IPPC Mark) certifying that it has been treated.
- Shipments containing non-compliant WPM will not be allowed to enter Canada.
- This exemption applies only to the “Continental United States”. Wood from Hawaii and U.S. territories is not included in the exemption.
The exemption applies to both WPM shipping as a commodity and WPM bearing product. In some situations, a declaration is required to document the origin of the wood used to build the WPM as being sourced from the Continental United States.
A declaration is not required on:
- ISPM 15 conforming WPM with all material having proper IPPC marks (U.S. or foreign).
A declaration is required on:
- WPM constructed from wood of Continental U.S. origin with no marks.
- ISPM 15 conforming WPM with foreign IPPC markings shipped along with unmarked WPM constructed from wood of Continental U.S. origin. (Without this declaration, the unmarked pallets will be considered not of U.S. origin and denied entry into Canada.)
On Repaired WPM:
- Repaired WPM not of U.S. origin will need to be treated and IPPC marked to legally gain entry into Canada from the U.S.
- Companies trying to send repaired WPM with obliteration marks into Canada will need to have enough knowledge of the wood origin to convince Canadian Customs it is U.S. or Canadian sourced. Since this will be almost impossible with properly obliterated marks, it will be best to treat and remark the WPM.
- Repaired and untreated WPM with obliterated marks attempting entry into Canada could be considered a sign of fraud by Canadian Customs even with a declaration and entry may be denied.
It is important that facilities and their customers are aware of this standard in order to avoid costly delays at the border and potential loss of business.
If you are really thankful, what do you do? You share.
W. Clement Stone