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

Trapped Vancouver Island crash survivor celebrates second chance at life

“Life is good now. It’s good to be alive.”

Baby, it’s nasty outside: wind and rain will continue across Vancouver Island

Police warn drivers and pedestrians to use precaution during expected rain and winds

Collective agreement met between UFCW 1518 and IGA

Membership voted strongly in favour of the collective agreement, which came days after negotiations.

Safety board issues letters over rail crash that killed three workers in Woss

The safety board conducted the investigation at the request of the Transportation Ministry

SD85’s spring break schedule may change to two-weeks but would overlap Easter

“This makes absolutely no sense to me,” Barrett stated in a letter to school trustees.

Fashion Fridays: How to change your beauty routine

Kim XO, lets you in on her style secrets each Fashion Friday on the Black Press Media Network

Increase in downed power lines in B.C., how to stay safe

BC Hydro study finds a third of British Columbians may be putting themselves at risk

Judge sets bail at $2.5 million in 1987 slaying of B.C. couple

William Talbott II, 55, is charged with two counts of aggravated first-degree murder

EU leaders vow to press on with ‘no-deal’ Brexit plans

European Union leaders have offered Theresa May sympathy but no promises, as the British prime minister seeks a lifeline.

Powerful winds set to hit Metro Vancouver, Fraser Valley, Vancouver Island

The agency says winds in coastal areas will strengthen up to 70 kilometres an hour before the front moves inland and gusts reach 90 kilometres an hour.

Mandatory victim surcharge cruel and unusual punishment, top court rules

Stephen Harper’s Conservative government made the charges mandatory in 2013.

Tourism minister postpones trip to China amid tensions between two countries

Tourism Minister Melanie Joly’s office says Canada and China have mutually agreed to postpone a closing ceremony next week.

Police across Canada probe bomb threats as U.S. authorities dismiss ‘hoax’

A police spokesman said the emails were the same as those received elsewhere in North America

France shooter killed Thursday during police operation

7 more being held by police in shooting investigation

Most Read