To analyze the supplier prices and market situation of North American Hemlock and Douglas Fir Logs, the first is to consider the trade war. On 24 September 2018, the United States and China have raised taxes on major imports. Due to a 25% increase in tariff on 1 January 2019 and the appreciation of the exchange rate of dollar, the domestic dealers were not confident of purchasing large amounts of Hemlock and Doulas Fir logs, considering Hemlock and Doulas Fir logs are mainly imported form the US and the cost of punitive traffics may get too high. From the recent market, both supplier prices of Hemlock and Douglas Fir logs were rising. The supplier prices of Canadian hemlock was rose from 940 USD/m³ to 960 USD/m³ in August, and the supplier prices in U.S. was rose from 980 USD/m³ to 1000 USD/m³. The sales price of North American Hemlock in Taicang was raised from 1050 Yuan/m³ in early July to 1100 Yuan/m³ in early August, while the price was 1150 in early September and was 1170 in the middle of September. The sales price difference between Hemlock and Doulas Fir logs in Lanshan was 20 Yuan/m³. The sales price of Hemlock was raised from 1080 to 1140 Yuan/m³ in mid-September, and the price of Douglas Fir logs rose to 1160 Yuan/m³.
By comparing the revenue in early September of 2017, the price was 960 USD/m³ in Canada, and 1040 USD/m³ in U.S. The sales price in Chinese Taicang market was 1090 Yuan/m³, while in Lanshan was 1080 Yuan/m³. From the comparison of dollar exchange rate and the supply and sales price, the market was better in September 2017 than that in the same period of 2018. The US-China trade war has begun, Hemlock and Doulas Fir logs were facing high punitive tariffs, and the domestic dealers can better understand of the current operating conditions and market development trend through the data analysis of domestic sales.
In September, the blue stain period of Radiata Pine and Pinus sylvestris were almost over, and the demand for North American Hemlock and Douglas Fir Logs will decrease. However, tariffs for North American Hemlock, Douglas Fir Logs and Southern pine will increase to 25% due to the trade war between China and U.S. The domestic dealers cannot afford such high tariffs on timber.