Dimension lumber for frame construction is the backbone of B.C.’s forest industry. (Black Press Media)

B.C. lumber layoffs aim to stop falling wood products prices

Production cut as North American stud price dips below $300

The latest reductions in B.C. sawmill output may be enough to stop the slide of lumber prices after they hit record highs last year.

Canfor’s province-wide sawmill shutdowns were announced this week as North American prices for spruce-pine-fir two-by-fours and two-by-sixes slipped below $300 per 1,000 board feet, according to the latest figures from Madison’s Lumber Reporter. A year ago the two-by-four price was above $650, and the downward trend has continued since the beginning of 2019.

Canfor’s curtailments take effect next week, with a target of reducing B.C. lumber production by 200 million board feet. Sawmills at Houston and Vanderhoof are shutting down for four weeks, with two-week breaks mills in Prince George, Chetwynd, Fort St. John, Radium Hot Springs and Elko.

The only Canfor mill in B.C. to continue production is Wynnwood in the Creston Valley, which produces high-grade specialty boards used in furniture, siding, fascia, doors and windows and other fine woodwork.

Tolko Industries announced in May it will permanently shut down its Quest Wood sawmill in Quesnel, and Canfor followed suit last week with the pending closure of its Vavenby sawmill near Clearwater.

RELATED: B.C. forest companies get first test of logging licence rules

RELATED: Norbord closing 100 Mile House OSB plant in August

Interfor is reducing operating days at three B.C. Interior mills, at Castlegar, Grand Forks and Adams Lake. Interfor has agreed to pay $60 million for Canfor’s timber rights to Vavenby, to supply logs to its 100-year-old Adams Lake sawmill, but that sale must get ministry approval under the NDP government’s new legislation.

B.C. Liberal forests critic John Rustad said there have been 83 weeks of operational downtime at B.C. mills so far in 2019, as well as the two permanent closures. On top of that, Norbord announced this week it is shutting down its oriented strandboard plant in 100 Mile House in August, due to log supply problems after wildfires and the depletion of mountain pine beetle-killed timber in the B.C. Interior.

“There are possible solutions that government could employ to increase supply to OSB operations like Norbord and make B.C. more competitive by bringing down the highest production costs in North America,” Rustad said.

Cariboo-Chilcotin MLA Donna Barnett called on the province to help the people losing their jobs. The Vavenby mill employs more than 170 people, and Norbord’s mill in 100 Mile House employs 160.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Assessments needed before Parksville beach cleanup could get green light

Permits, reviews would cost city an estimated $164,000

Parksville’s Kurz runs 160 kilometres in less than 24 hours

Former Ballenas athlete raises more than $8,000 for Terry Fox Foundation

Joint effort helps extinguish shop fire in Coombs

Firefighters quickly contain blaze that spread to nearby trees

Island farmers concerned with Agricultural Land Reserve changes

Dozens voice concerns at special meeting in Nanoose Bay

Parksville resort fire caused by flammable gas used to extract oil from cannabis

Investigators detail reasons for explosion and blaze that destroyed building

VIDEO: ‘Avengers: Endgame’ to be re-released with new footage

‘Avatar’ holds global box office record at $2.788 billion, while ‘Endgame’ stands at $2.743 billion…

B.C. teen killed by falling tree near Victoria

Second youth also injured in freak incident during field trip at Camp Barnard near Sooke

Elias Pettersson wins Calder Trophy as NHL’s top rookie

Vancouver forward first Canuck to win award since Pavel Bure in 1992

RCMP allows officers to grow beards

Members can now wear beards and goatees, as long as they’re neatly groomed

Scorpion gives birth after hitching ride in B.C. woman’s luggage

A Vancouver woman inadvertently brought the animal home from a trip to Cuba

30 years later: B.C. woman uses sidewalk chalk to reclaim site of her sexual assault

Vancouver woman didn’t think her powerful story, written in chalk, would ignite such support

FVRD chair calls B.C. incineration plan for Philippines waste ‘disturbing’

Metro Vancouver ‘uniquely capable’ of safely disposing of waste coming back to Canada, say officials

VIDEO: Acknowledging skeptics, finance minister vows to build Trans Mountain project

Bill Morneau said he recognizes ‘huge amount of anxiety’ in Calgary over future of oil and gas sector

Shovels could be in the ground on Trans Mountain by September, CEO says

Ian Anderson points to weeks likely required for NEB to reinstate 2016 regulatory record

Most Read