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by Matticus_Rex
1850 days ago
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Exporting at a loss is often the prudent financial measure just because of market conditions, and it does have the effect of increasing domestic prices (as a third-order effect), but the way you're describing it happening isn't plausible. Do you have a citation that they're intentionally losing money in order to drive prices up to a target price? Because that, no offense, would be idiotic unless they have some kind of subsidization deal that would support it, as the export of any quantity of lumber even at break-even would not increase domestic prices enough to justify the losses of profit on that lumber if profit was available. It sounds like the market is down, and they have lumber on hand, and it's better to sell at a loss and realize the revenue in most cases than to not sell at all. |
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