It came as a surprise to no one this week that trading of North American lumber and panel products slowed as American players largely evacuated offices even on Wednesday afternoon for the US Thanksgiving long weekend, writes Keta Kosman in Madison's Lumber Reporter
https://madisonsreport.com.
Field inventories remained weak enough for producers to be able to keep prices relatively flat on most commodities.
The majority sentiment was that sales volumes next week will determine if 2013 ends with a bang similar to 2012, or more quietly as would be the usual seasonal cycle. It was at this very time last year, after all, that prices of benchmark dimension lumber commodity WSPF KD 2x4 #2&Btr popped $14, or 4 per cent, to US$350 mfbm. That price climbed inexorably into this spring then experienced a lengthy correction back downward through summer.
That same item this week lost $4 to US$380. This is a $30, or 7.9 per cent, improvement over the same time in 2012.
Most sawmills reported order files still into early December. This reality provided enough confidence for suppliers to generally ignore counter-offers as customers who had balked at unseasonable price strength desperately needed to fill holes in their own inventories.
However cracks began to appear in sawmills' claims of strong ordering and restricted supply. One source explained to Madison's Lumber Reporter Thursday that "at least one desperate Western Spruce-Pine-Fir producer took massive discounts on nine-foot studs to keep their wood moving".
In financial news,
Conifex Timber Inc. (
TSX: V.CFF,
Stock Forum), out of Vancouver, BC, announced Friday that its wholly-owned subsidiary, Conifex Power Limited Partnership, closed its previously announced secured project financing for its planned 36MW bioenergy power project in Mackenzie, BC.
The Project Financing is for an aggregate of up to $102.7 million, and includes a development and construction loan for the Power Project of up to $82 million.
Still in BC, a late-morning announcement from the United Steelworkers provided much-needed relief from uncertainty in that province. Players can now feel secure that there will be no major labour disruptions in British Columbia's forest products industry for the next five years.
The USW and employers-group Interior Forest Labour Relations Association (IFLRA) reached a tentative agreement for the southern interior based on the previous "pattern" agreement previously signed with
Canfor Corp. (
TSX: T.CFP,
Stock Forum) for the northern interior. IFLRA handles collective bargaining for
West Fraser Timber Co. Ltd. (
TSX: T.WFT,
Stock Forum)
, and Weyerhaeuser Co. (
NYSE: WY,
Stock Forum), and Tolko, among others.
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Keta Kosman
Publisher
Madison's Lumber Reporter
604 984-6838
www.madisonsreport.com