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

Voter turnout trending lower

Initial numbers appear to be significantly down from last election cycle in 2014

UPDATED: Bear euthanized after incident near Wycliffe regional park

A bear has been euthanized after an attack on a ATV rider… Continue reading

RCMP thank public for help locating missing man

RCMP are thanking the public and volunteers for help in locating a… Continue reading

It happened this week in Cranbrook: 1909

For the week of October 14-20: Items compiled by Dave Humphrey from the archived newspapers held at the Cranbrook History Centre and Archives

Kimberley Golf Club members vote to proceed with sale of course

Purcell International Education will be purchasing the 18-hole course

Tommy Chong says cannabis legalization makes him proud to be a Canadian

Legendary marijuana advocate and comedian celebrates cultural milestone at Kelowna event

A Doctrine and a Royal Proclamation: Part II

Rev. Yme Woensdregt Last week, I expanded what I had written previously… Continue reading

‘Who the hell is Ferdy Belland?’

Local bass player joins nationally renowned rock star’s band

The post-truthiness world

Remember back in the innocent days of pre-2016 when Steven Colbert coined… Continue reading

Prank pizzas delivered to B.C. mayor on election night

The fake orders happened throughout Victoria mayor’s re-election campaign

MLA to become Nanaimo’s next mayor, could weaken NDP’s grasp on power

Leonard Krog’s win will trigger a byelection when he gives up his provincial seat

Horvat nets OT winner as Canucks beat Bruins 2-1

Young Vancouver star had spirited scrap earlier in contest

Team Canada gold medal winners for first time in world curling championship

Team Canada earned gold in Kelowna at the 2018 Winn Rentals World Mixed Curling Championship

B.C. passenger caught smoking weed in a car issued $230 fine

Saanich police did a field sobriety test on the driver and deemed it safe for him to drive

Most Read