European companies shipping 2×4 spruce framing to America could be losing up to US$200 per thousand board feet because of current market conditions, according to industry newsletter Random Lengths.
The estimation is based on an equation that assumes an exchange rate of US$1.52 per euro, combined log and manufacturing costs of US$266 per m3 and US$66 per m3 for freight and dock costs.
European shipments reached nearly 2 billion board feet in 2005, but have since declined to 1.6 billion in 2006 and 870 million in 2007.
Random Lengths says American dealers are turning to Canadian or domestic producers to make up for the reduction in European supplies.
