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

Creston RCMP investigating forcible confinement and sexual assault

Anyone with information regarding this incident are asked to contact the Creston RCMP at 250-428-9313.

Food Recovery program off to good start

Healthy Kimberley’s Food Recovery Depot has managed to re-direct 2,000 pounds of… Continue reading

Friends of the Kimbrook present $6,078 for Kimberley Food Bank

All through the year the Friends of the Kimbrook raise funds for… Continue reading

Kimberley Mayor “disgusted” with federal decision on elected official pay

Change in federal tax law means no more tax deduction for elected officials; pay will increase 12 per cent to make it up

Man caught on camera allegedly trying to defraud ICBC

Auto-insurer warns B.C. drivers to record info after crashes

‘People talk about deep sadness:’ Scientists study climate change grief

Some call it environmental grief, some call it solastalgia — a word coined for a feeling of homesickness when home changes around you.

As protectors abandon Trump, investigation draws closer

Cohen was sentenced Wednesday to three years in prison for an array of crimes.

Senate delays start of sittings in new home, delaying start of broadcasts

The Senate and House of Commons are moving into temporary homes for the next decade as a result of long-planned and badly needed renovations to the Centre Block.

UK leader seeks EU lifeline after surviving confidence vote

EU leaders gather for a two-day summit, beginning Thursday, which will center on the Brexit negotiations.

BCHL’ers blanked by Russia at World Junior A Challenge

Canada West loses battle of the unbeaten teams in the preliminary round

French police try to catch attack suspect dead or alive

Local authorities increase death toll to three, including 13 wounded and five in serious condition

Second Canadian missing in China after questioning by authorities

Michael Spavor, founder of a non-profit that organizes cultural-exchange trips to North Korea, “is presently missing in China”

Cannabis gift ideas for this holiday season

Put the green in happy holidays, now that cannabis is legal in Canada

Most Read