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

100 years since the surrender of Simon Gunanoot

The famed Gitsxan hunter was a fugitive for 13 years

Smithers celebrates National Indigenous Peoples Day

The day included dancing, singing, a moose call contest and a soapberry ice cream tutorial.

UNBC researcher leads study on cannabis-impaired driving

Dr. Russ Callaghan hypothesizes increased motor vehicle collision injuries among young people

Bestselling Indigenous author enlightens Smithers audience on the Indian Act

Bob Joseph is the author of 21 Things You May Not Know About the Indian Act

Scheduled roadwork for June 20 – July 17

Some lane closures expected as Town proceeds with maintenance

Air Canada reviewing how crew left sleeping passenger on parked plane

In a Facebook post, the woman said she woke up ‘all alone’ on a ‘cold dark’ aircraft

B.C. judge defies lawyers and adds six months to man’s sex assault sentence

‘I find the joint submission is contrary to the public interest and I’m rejecting it’

Tiny Yorkshire terrier survives days on remote B.C. island

ROAM rescue crews, family searched for dog, missing in Greater Victoria for days

Man presumed dead after boat capsizes in Columbia River

Search and rescue efforts recovered a life jacket

Crews fight wildfire along Sea-to-Sky Highway

A cause has not been determined, although a downed power line is suspected

PHOTOS: Event marks one year since soccer team rescued from Thai cave

Nine players and coach took part in marathon and bike event to help improve conditions at cave

Rock climber dies after fall at Stawamus Chief in Squamish

The man had fallen about 30 metres while climbing in the Grand Wall area

Five B.C. students taken to hospital after playing with vaping device

School district said students were taken to hospital ‘out of an abundance of caution’

Being a pot dealer is not what it used to be

Sunday Big Read: the business of selling marijuana in B.C. is a slow bureaucratic slog

Most Read