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Softwood lumber prices in the U.S. soared to near-record highs Wednesday, as Canadian producers passed on higher export duties charged by the U.S. government straight on to American consumers.

Prices for KD Western S-P-F, a common benchmark for softwood lumber exported into the U.S., was trading above US$494, near its all-time high, that appear to neutralize any potential impact of increased duties placed on Canadian exporters.

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Analysts say tightening markets are a key shift compared to the last time Canada and the U.S. were in a prolonged dispute over softwood lumber trade, which endured from 2001 to 2006.

“That’s what’s really different this time, is you have fundamentally very tight building materials markets — both for lumber and structural panels,” said Daryl Swetlishoff, the head of equity research at Raymond James Ltd. in Vancouver.

“As a result, you’ve seen Canadian lumber producers passing off 100 per cent of these duties that they’ve faced so far in 2017 right onto the backs of the U.S. consumer.”