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📦 Of Hem-fir (Western hemlock (Tsuga heterophylla) and fir (Abies spp.))

Of Hem-fir (Western hemlock (<u>Tsuga</u> <u>heterophylla</u>) and fir (<u>Abies</u> spp.))

HS Code:

📦

Overview

Hem-fir is a category of softwood lumber that includes Western Hemlock (Tsuga heterophylla) and various species of Fir (Abies spp.). It is primarily used in construction, particularly for framing, and is valued for its strength, stability, and workability. This category is a significant part of the global timber trade, with major production and export activities centered in North America, particularly in the United States and Canada. Hem-fir is often grouped together due to similar physical properties, making it a versatile choice for structural applications. The trade of Hem-fir is influenced by housing market demands, environmental regulations, and international trade policies.

Total Trade Volume

Approximately 15 million cubic meters

Data from 2022

Source

International Trade Centre (ITC) Trade Map and FAO Forestry Statistics

Tariff Analysis

Average Rate

5.2% ad valorem

Highest Rate

20% (imposed by certain developing countries)

Lowest Rate

0% (under free trade agreements such as USMCA)

Common Restrictions

  • Import quotas in some Asian markets
  • Sustainability certification requirements (e.g., FSC or PEFC)
  • Anti-dumping duties (e.g., historical US-Canada softwood lumber disputes)
  • Phytosanitary regulations to prevent pest introduction

Market Trends

Rising demand in Asia-Pacific for construction materials

Increased exports from North America to markets like China and Japan, driven by urbanization and infrastructure projects.

2021-2022

Fluctuations in US housing market

Direct correlation with Hem-fir demand; a slowdown in housing starts in 2022 led to reduced domestic consumption in the US.

2022

Growing emphasis on sustainable forestry

Increased costs for producers due to certification requirements, but also access to premium markets in Europe and North America.

2020-2022

Recent Developments

US-Canada Softwood Lumber Agreement Discussions

Ongoing negotiations between the US and Canada regarding softwood lumber tariffs and trade practices aim to resolve long-standing disputes over subsidies and dumping allegations.

Mid-2023

Potential reduction in tariffs could boost Canadian exports to the US, stabilizing prices for Hem-fir.

China's Construction Boom

Increased infrastructure spending in China has led to a surge in demand for imported softwood, including Hem-fir, to support rapid urbanization.

Early 2023

Higher export volumes to China, creating new market opportunities for North American producers.

Environmental Regulations Tighten in North America

Stricter logging regulations and protected area expansions in British Columbia and the Pacific Northwest have constrained Hem-fir supply.

Late 2022

Reduced supply has led to price increases and potential shifts to alternative species or regions for sourcing.