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

Being vegan during the holidays just got a little bit better

Cook up these delicious options during the holidays

Snow tonight in Kelowna

The snowfall will continue through the week

Kelowna, Lake Country boundary has odd history with old whiskey distillery

Coun. Bill Scarrow is still advocating for a boundary change

Sellers Market T.V. show returns to Kelowna

They are now looking for homeowners that want to be featured on the show

VIDEO: This B.C. school leads country in vaccine donations to UNICEF

Federally funded Kids Boost Immunity uses quizzes to earn vaccinations

In Canada, the term ‘nationalism’ doesn’t seem to have a bad rap. Here’s why

Data suggest that Canadians don’t see the concept of nationalism the way people do in the United States

Sicamous behind as Sled Town Showdown enters its final day

Tumbler ridge enjoys a three-digit lead as the online contest nears its conclusion

Small quake recorded west of Vancouver Island

No injuries or tsunami warning after 5.4 rumble felt some 400 kilometres from Victoria

Shuswap girl raises funds in memory of two-year-old who died

Wolter family announces formation of Alice’s Angels bursary in honour of their daughter

B.C. suspends Chinese portion of Asian forestry trade mission due to Huawei arrest

Huawei’s chief financial officer Meng Wanzhou was detained at the request of U.S. in Vancouver

Canadians spent $1.7 billion dollars online in December 2017

Online retail sales accounted for 3.4 per cent of total retail sales

2-year investigations nets $900,000 in refunds for payday loan customers

Consumer Protection BC says selling practices were ‘aggressive and deceptive’

China: Canada’s detention of Huawei exec ‘vile in nature’

Huawei is the biggest global supplier of network gear for phone and internet company

Most Read