B.C lumber has very bright future
Van Sun says Canfor, others can expect higher prices
2014-12-24 09:19 ET - In the News
See In the News (C-CFP) Canfor Corp
The Vancouver Sun reports in its Wednesday edition rising housing starts in the United States coupled with falling timber harvests in British Columbia and Quebec could push world lumber prices to record levels by 2017. The Sun's Derrick Penner quotes a report from International Wood Markets that says U.S. housing starts will climb to about 1.46 million units per year by 2019 from just over one million this year. Normally, B.C. and Canada's lumber output would increase along with the rising demand, but this time B.C.'s mountain-pine-beetle-ravaged forests will be short of timber inventories for mills to increase their production. Meanwhile, Quebec has reduced its Crown timber harvests to meet conservation goals. The upside is much higher prices for lumber. The cost for a 1,000-board-foot bundle of two-by-four lumber will rise to $425 in 2017 from an estimated annual average of $349 in 2014 (all figures U.S.). "The highest average price we've had is around $400 and that was once in 1996, and once in 2004," Mr. Taylor said. He expects B.C. lumber production to ease back by about 2 per cent this year, but bounce back by about the same amount next year. On Tuesday, the price fell $1 to $334 per 1,000 board-feet.