West Fraser to record $73M softwood lumber duty charge
West Fraser said it expects to receive a $15 million refund in 2026 related to anti-dumping duty liquidation for exports between August 2017 and December 2017.
SEATTLE (Scrap Monster): West Fraser Timber Co. (TSX:WFG) on Thursday disclosed it expects to record a $73 million non-cash charge in the first quarter related to softwood lumber export duties.
The charge represents the difference between previously recorded expenses for 2024 based on countervailing duty cash deposit rates of 2.19% and 6.85% during the year and the preliminary rate of 15.93%. The US Department of Commerce issued preliminary rates for the seventh administrative review period on April 9 covering 2024 shipments.
The new rates would decrease West Fraser’s combined current cash deposit rate from 26.47% to 20.70%. The company also expects to take an additional $41 million non-cash charge to export duty expense in the first quarter based on updated estimates from the liquidation process.
West Fraser said it expects to receive a $15 million refund in 2026 related to anti-dumping duty liquidation for exports between August 2017 and December 2017.
On operational developments, the company resumed full operations at its Blue Ridge, Alberta lumber mill following a January fire. Production commenced at the new lumber facility in Henderson, Texas. Manufacturing operations at the High Level, Alberta OSB mill will conclude by the end of April.
Lumber pricing increased in the first quarter compared to the fourth quarter of 2025. The Western SPF 2x4 Random benchmark rose from $423 per thousand board feet to $463, an increase of 9%. The Westside SYP 2x4 Random benchmark rose from $323 to $436 per thousand board feet, an increase of 35%.
West Fraser will release its first quarter 2026 financial results on April 29.
Courtesy: www.investing.com