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June 4, 2019

Canadian lumber industry struggles with trade disputes and climate change

Canadian lumber industry struggles with trade disputes and climate change

The Canadian softwood lumber industry has to handle two of the biggest challenges in its history: the trade disputes and climate change. As a result of this struggle, companies in British Columbia have already cut back shifts and closed sawmills, due to a lack of log supplies and lower prices. 

The high log costs in B.C., caused by a lack of logs supply due to the bark beetle infestations and wildfire seasons, resulted in record high lumber prices, which plunged in the fall of 2018. This caused temporary mill shutdowns, with more to come in the next period, if the prices don't recover.

Interfor announced it would cut back on operations for June, joining in the temporary curtailments already rolled out by Canfor and West Fraser. Also, Tolko closed its mill in Quesnel, once with a shift at its Kelowna mill

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