Drywall tariff puts prices through roof

Drywall prices across Western Canada have shot through the roof after the federal government imposed preliminary antidumping tariffs of up to 276 per cent on gypsum board products imported from the United States.

Builders and suppliers fear the ruling could disrupt the supply of the boarding used in walls and ceilings and threaten the completion of residential, commercial and public projects. The tariffs also risk bankrupting contractors who operate under fixed-priced contracts.

A spokesman for Canada’s largest independent gypsum supplier said Tuesday the tariffs undermine the stability of the industry and could affect the rebuilding efforts in Fort McMurray, Alta. where thousands of buildings were destroyed by fire this year.

“If we can’t get enough material to ship into the province of Alberta then as Fort McMurray stands, it would be affected like everybody else,” said Doug Skrepnek, chief executive officer at WSB Titan. The company supplies one in every six sheets of drywall used in Canada.

The Canada Border Services Agency imposed preliminary tariffs Tuesday on U.S. gypsum board imported into Canada for use in B.C., Alberta, Saskatchewan, Manitoba and the Yukon and Northwest Territories.

A CBSA statement said Canadian producers have legislated rights to seek protection from dumped imports by way of duties.

“Following a complaint filed on April 18 by CertainTeed Gypsum Canada of Mississauga, Ont., the CBSA initiated an investigation on June 6,” said the statement. “The CBSA made a preliminary determination of dumping on Sept. 6, and provisional duties were imposed at that time to offset the dumping.”

CertainTeed has gypsum production plants in Vancouver, Calgary and Winnipeg, but the operations are only able to supply between 40 and 60 per cent of the building needs in Western Canada. The limited supply of CertainTeed gypsum in Western Canada is one reason why U.S. product is imported into Canada.