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

Microscopic parasite found in Prince Rupert water affecting thousands

More than 12,000 residents affected by the boil water advisory issued Dec. 14

VIDEO: Third Annual Fun Run

The Prince Rupert Runners Club held its third annual fun run Sunday

Prince Rupert Rampage come up short in Terrace

River Kings beat the Rampage 4-3 in overtime Saturday night

WEB POLL: Where are you getting your clean water?

Prince Rupert is under a boil water advisory for possibly a week, or longer

RCMP ask public to help find missing Prince Rupert man

Binh Tran has been missing since December 11

Grocery stores run out of water in Prince Rupert

Video on the boil water advisory, where to call, and where to find bottled water

Shop Prince Rupert is back

These businesses are all taking part in the Shop Prince Rupert event until December 21 at noon

Canada’s robust credit rating should calm unease about federal deficits: Trudeau

Trudeau says Canada’s long-running triple-A rating means experts have confidence in his government’s approach to the economy

CIBC shrinks event after Whistler mayor irks oil producers

After Whistler sent a letter to a Calgary-based oilsands giant, several energy firms said they would back out of the CIBC event.

Couple caught up in B.C. Legislature bomb plot to learn their fate

John Nuttall and Amanda Korody were arrested as part of an undercover RCMP sting on Canada Day 2013

Trial rights of accused spy for China at risk, lawyer tells Supreme Court

The lawyer for a man accused of trying to spy for China says federal foot-dragging over secrecy is endangering his client’s right to timely justice.

‘Recall fatigue’: Canadians may avoid certain foods over holidays

In the winter, Canada’s supply of fresh fruit and vegetables tends to come from very specific areas.

Ryan Reynolds to narrate movie about B.C.’s Great Bear Rainforest

Vancouver-born actor known for Deadpool movies will voice film to be released Feb. 15, 2019

Airline passengers could get up to $2,400 for delays, damaged bags: Canadian agency

Canadian Transportation Agency is releasing draft regulations for public feedback

Most Read