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

FOCUS: Federal election campaign heating up in Surrey

Lazy days of summer interrupted by knocks on residents’ doors by incumbents, would-be MPs in pursuit of votes

VIDEO: White Rock’s Totem Park renaming motion to be reconsidered

1999 commemorative ceremony video shows ‘historic’ apology from RCMP to First Nations

South Surrey girl aims to make waves for ocean change, one ripple at a time

‘I know I can make a difference,’ says Shelby Hack

Surrey survey details new sports stadium planned at Bear Creek Park

The proposed facility ‘will upgrade an existing track and sports field to international standards’

Surrey mayor dissolves public safety committee, creates one for police transition

Locke slams the move, saying who McCallum appoints to the committee will be ‘a very large tell’

VIDEO: Bloodhounds join the search for missing Chilliwack woman with dementia

Petsearchers Canada arrive in town Monday afternoon to help out

B.C. on right road with tougher ride-hailing driver rules, says expert

The provincial government is holding firm that ride-hailing drivers have a Class 4 licence

B.C. Ferries cancels two sailings Monday due to mechanical issues

Tsawwassen to Swartz Bay run affected in order to repair Queen of New Westminster

RCMP investigating alleged ‘sexual misconduct’ by cyclist on BCIT campus

BCIT said they were reviewing video evidence of the incident

New home cost dips in B.C.’s large urban centres

Victoria, Kelowna, Vancouver prices decline from last year

Graphic suicide scene edited out of ‘13 Reasons Why’ finale

Suicide prevention groups support the decision

Nine kittens and cats rescued after being locked in bins in northern B.C.: SPCA

SPCA says cats were starving, and matted with feces and urine

Woman grabbed, followed on trail near SFU campus: Burnaby RCMP

The woman told police a man was following and tried to talk to her

High-speed rail link would run from Vancouver to Seattle in under 1 hour: study

Annual ridership is projected to exceed three million

Most Read