Canfor Corp T.CFP

B.C. production down 20%

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Beside the publicly traded company, we have seen many privately own lumber company
close or curtail production in B.C. over the past month.

What we are witnessing is supply discipline.In the past cycles, lumber company never showed
so much discipline.The shutdown equats to about 20% of the total annual B.C production capacity


After last week big run up in the SP, we could see a pull back on profit taking but
it feels that the wind is starting to turn once again in our favor.

Here are just a few announcement in the past few weeks in B.C.

Tolko Industries said it will be extending the shutdown of mills in Soda Creek and Armstrong through the month of February, affecting 350 employees, while Sinclair Forest Products announced the two-week closure of its lumber operations in Fort St. James, Prince George and Vanderhoof starting Jan. 30, impacting 360 employees.

 

 AP Group shut down their Merritt lumber mill at the beginning of December without an official reopening date. With no cutting permits having been issued since the beginning of the two Merritt sites’ closure, senior officials with AP Group say the closure could drag on to the end of January, or even longer.

 

The Vaagan Fibre Canada sawmill is shutting down indefinitely, due to a lack of logs, the family owned sawmill announced Friday.