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

Drivesmart column: Fear of police retaliation

While I won’t say that this is impossible, I would certainly like to think that it is highly unlikely

Cowichan Div. 2 women out-paced in last match of 2018

Soccer team has second game of the weekend postponed by weather

Robert Barron column: Universal child care good for families, and society

I’m pleased that the province is stepping in to start providing $10-per-day childcare spaces

Lynn’s hat trick gets Caps past Salmon Arm

Cowichan wins second game of Interior road trip

From introducing k.d. lang to honouring Gordon Lightfoot, Cowichan Theatre has had busy 40 years

40-year retrospective has offered theatregoers a glimpse of Cowichan’s entertainment history

VIDEO: Cobble Hill welcomes Christmas with frolicsome show

From lovely carols to humorous skits: a big crowd enjoyed it all on Sunday, Dec. 9

Coming up in Cowichan: Celebrate the second floor with the HUB

Celebrate the second floor this weekend at HUB at Cowichan Station Dec.… Continue reading

Crossword puzzle clues Dec. 14

Oops. Attention all crossword puzzle fans: the clues in the Friday, Dec.… Continue reading

GoFundMe helps Vancouver Island teen battle a rare cancer

Nanaimo’s Michelle Reilly, 16, battling spinal cord cancer, seeking possible treatment in U.S.

Canada’s ambassador meets with second detainee in China

Global Affairs says John McCallum, Canada’s ambassador to China, met with Spavor Sunday

‘They’re coming:’ Flying cars may appear in urban skies by 2023

Air taxis will number 15,000 and become a global market worth $32 billion by 2035

B.C. VIEWS: Andrew Wilkinson on taxes, ICBC and union changes

Opposition leader sees unpredictable year ahead in 2019

5 tips for self-care, mental wellness this holiday season

Ministry of Mental Health and Addictions urging British Columbians to prioritize self care through festive season

Rescued B.C. cat with misshapen legs in need of forever home – with carpet

Mirielle was born with misshapen back legs and after a tough life on the streets, is looking for a forever home.

Most Read