By ANNELIA NIXON

Tribune Business Reporter

anixon@tribunemedia.net

Several Bahamian building material suppliers yesterday said they have seen a drop in lumber prices and are passing the lower costs on to their customers following similar decreases in the US.

With lumber futures falling below $530 per 1,000 board feet this month, marking the lowest price in almost a year, US tariffs on Canadian lumber have also jumped from 15 percent to 35 percent resulting in an inventory backlog across supply chains.

However, not all Bahamian lumber retailers have enjoyed a price decrease. A representative of Hanson building materials, who brings lumber in every week, said businesses are not purchasing from the same suppliers, which would explain why they and some others have not experienced a drop.

“It would depend on obviously their buying power,” they said. “Some may be buying more than others. We may also be not using the same suppliers straight across the board. So that could be a reason. I could tell you certainly our strategy is you call around every so often from time to time to see where the market is. So you kind of keep a good idea of where everyone’s prices are. I haven’t seen it yet, but that’s not to suggest that it isn’t on it’s way.

“We haven’t experienced a decrease just yet - not a material difference in the prices. So I wouldn’t say that that’s the case, but certainly, if it happens, we definitely pass the price on to the consumer. You don’t really have much choice because you have so much competition. The market would dictate that you adjust to where the market is. We haven’t seen that just yet. Those things take time. They take a while to trickle down to the Caribbean, especially because most of us buy from the same suppliers out of the US.

“I mean, straight across the board, if you see any increase in lumber given the level of construction right now that’s happening in the country, it’ll be beneficial to everyone. So irrespective of the size, I think it would be beneficial. And again, we certainly don’t operate sort of like a cartel where there is collaboration. So again, once one person lowers their prices, the market will move towards where the demand is. So whether or not it will be passed on to the consumer, invariably, it has no choice.”

A representative from another well-known building supply store said they base their lumber pricing on the market and try to always provide the best price to customers.

“I attach my lumber pricing to the market on a daily basis,” they said. “So every time lumber comes in, I analyse it. I pass on as much as I can to the consumer. Not every one goes down, though. There have been some items that have gone up. The longer lengths I’ve noticed have been going up. We analyse our pricing daily and pass on as much to the consumer as we can as far as lowering prices.”

They added that they source internationally for many of their other products, but lumber must come from a nearby location in order to avoid challenges with the product, which makes attempting to source from further out countries difficult.

“We internationally source on a daily basis,” they said. “We buy from multiple locations - South America, Central America, the US, China, all over Europe, when it comes to some materials. But when it comes to lumber, it is difficult to buy with a long lead time, especially when things like mold and what not are taken into account. When you put lumber on a boat for a long period of time, it’s susceptible to grow mold.”

Staff from the finance department of Cartwright’s Building Supplies said they have noticed lower pricing on lumber but it is not across the board. They added that some sizes are more costly than others, and they have only seen a notable decrease in the price of some sizes.