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

Revelstoke City Council makes moves to protect the look of the downtown core

Revelstoke City Council has issued a development permit for a three story… Continue reading

5 tips for talking to your kids about cannabis

Health officials recommend sharing a harm reduction-related message.

Revelstoke women’s hockey hosts third annual tournament

The Revelstoke Kodiaks women’s hockey team hosted a tournament last weekend. Dawson… Continue reading

Revelstoke Grizzlies 8-0, playing at home on Saturday

The Grizzlies are 8-0 so far in the regular season after another… Continue reading

Election 2018: Second candidate for mayor joins the conversation

Darcy Wyonzek is running to be Revelstoke’s mayor

Secret supper clubs test appetite for cannabis-infused food ahead of legalization

Chefs are eagerly awaiting pot edibles to become legal in Canada

Early morning fire destroys Tappen home

Firefighters from Tappen-Sunnybrae and Shuswap fire departments respond

Private marijuana stores should shut down, Mike Farnworth says

B.C. has approved 62 licences, but they still need local approval

HPV vaccine does not lead to riskier sex among teen girls: UBC

Girls are less likely to have sex now than they were a decade ago

Koreas agree to break ground on inter-Korean railroad

The rival Koreas are holding high-level talks Monday to discuss further engagement amid a global diplomatic push to resolve the nuclear standoff with North Korea.

Flash floods kill at least 7 people in southwest France

Flash floods have left several people dead in southwest France, with roads swept away and streams become raging torrents as the equivalent of several months of rain fell overnight, authorities said Monday.

Trump to visit Florida, Georgia; search ongoing for missing

The death toll from Michael’s destructive march from Florida to Virginia stood at 17.

Canadians widely unaware of accomplishments of famous women, poll suggests

A new poll suggests Canadians have a lot to learn about the accomplishments of some of the country’s most famous women.

Temporary access allowed for residents of landslide-threatened B.C. community

The district says areas of access to the community of about 54 homes could be expanded, depending on advice from a geotechnical engineer.

Most Read