Plunging lumber prices hurt B.C. business

Interfor cutting back B.C. Interior production as lumber prices plunge

Interfor Corp. plans to cut production by about 20 per cent across its sawmills in the B.C. Interior as it faces declining lumber prices and higher log costs.

The Vancouver-based company said Friday that the scale-back is a temporary measure planned for the fourth quarter.

RELATED: Logging beetle-killed wood bad for small, at risk fisher: B.C. forest board

The cuts will be achieved through reduced operating days and extended weekends and holiday breaks spread across its three mills in the Interior, said chief financial officer Martin Juravsky.

“We’re trying to do it as smooth as possible under the circumstances from an employee perspective.”

The pullback comes as lumber prices for Western softwood have plunged from over US$650 per thousand board feet in June to under US$400 as concerns mount about the U.S. housing market.

The higher lumber prices had insulated mill operators like Interfor from rising log costs brought on by higher stumpage fees and other pressures, said Juravsky.

RELATED: Fisheries officials puzzled over missing Shuswap sockeye

“We obviously saw some very strong lumber markets in the first part of this year, and the higher log costs didn’t have as much of an impact when there were higher lumber prices.”

The drop in lumber prices has sent industry stock prices lower for a variety of Canadian players since the June high. Canfor Corp. is down 38 per cent, West Fraser Timber Co. Ltd. is down 34 per cent, and Interfor is down 39 per cent.

Interfor’s share price closed Friday down 54 cents or 3.16 per cent to $16.55 on the Toronto Stock Exchange for a 52-week low.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Chilliwack city council won’t reconsider cannabis retail applicant’s rejected pot shop

Reconsideration motion for proposed pot shop on Promontory defeated in three-to-three vote

Two week lock down lifted for Kent Institution

A search at the prison found nearly 26 grams of hashish and a cellphone

Chilliwack city council sides with seniors against five-storey apartment project

Developer sent back to the drawing board over concerns about sun-blocking building downtown

Harrison Hot Springs to partner with Sts’ailes for reconciliation event

The event will be funded by a grant meant to build dialogue between cities and local First Nations

Ryan McMahon brings new tunes to Acoustic Emporium in Chilliwack

Album is ‘snapshot of a soon-to-be middle-aged man trying to beat the blues,’ says singer-songwriter

Coquitlam RCMP release video in search for witness to crash that killed girl, 13

Witness is described as a slim Asian man with short, black hair, no facial hair and wearing glasses

TransLink fares to go up on July 1

Fares will increase by a few cents to a few dollars

Roadside device to weed out THC can’t detect impairment, B.C. lawyer says

‘This fact alone is likely to have serious implications for Canadians’ Charter Rights,’ lawyer Sarah Leamon warns

B.C. firefighters rescue frozen dog from ice

The fire crew found a dog stuck in the at Lake Paul on May 20

Most British Columbians agree the ‘big one’ is coming, but only 50% are prepared

Only 46 per cent of British Columbians have prepared an emergency kit with supplies they might need

B.C. man to pay Maxime Bernier’s People’s Party $20k over lawsuit

Federal judge shut down Satinder Dhillon’s ‘nonsensical’ motion to bar use of PPC name in byelection

Sitting and sleeping on downtown sidewalks could net $100 fine in Penticton

The measure, which still requires final approval, would be enforced between May and Sept. 30

Survey finds 15% of Canadian cannabis users with a valid licence drive within two hours of using

Survey also finds middle-aged men are upping their usage following legalization

Most Read