Lumber market to struggle until mid-2023, analysts predict

By Mark Neilson
The Prince George Citizen
December 7, 2022
Category: Finance & Economics
Region: Canada, United States

The weak market conditions that prompted Canfor’s announcement this week of production curtailments at its B.C. and Alberta sawmills will last until about midway through next year, two forest industry watchers are predicting. By then, price of western spruce, pine or fir two-by-fours should have bounced back to the break-even point, both Russ Taylor and Keta Kosman said. They estimate that level to be between US$500-$550 per thousand board feet, well above US$365 that Taylor said was quoted as recently as December 2. …Taylor also noted that Canfor said it anticipates the majority of its B.C. sawmills will operate below full capacity in the new year, indicating its Alberta operations will be back to running at current levels by early 2023 while those in this province will not. He said that’s a function of the difference in the way stumpage works in the two provinces. 

Read More