Mercer seeks a capital infusion after deferring $25.8M interest payment. In related news: BC’s support for Howe Sound Pulp & Paper has renewed debate over Canfor’s Northwood closure; Kentucky sawmills face mounting closures as tariffs and fuels costs rise; and ERA’s Kevin Mason says diesel prices are hitting forestry companies across the supply chain. Meanwhile: Trump’s Section 301 tariff faces a court challenge; FPAC’s Derek Nighbor says replacing lost US exports will take time; lumber futures fell to a two-year low; and US job growth slowed in September.
In Forestry news: the Trump administration will push to remove grizzly bears from the endangered species list; pine beetles are killing Colorado’s ponderosa pine; conservation groups want to halt a Tongass timber sale; hundreds rallied at the BC Legislature calling for old-growth protections; and Mosaic opened three Vancouver Island backcountry gates in a public-access pilot. Meanwhile: inspection inefficiencies and skilled-labour shortages are barriers to mass timber housing in Ontario.
Finally, Weyerhaeuser is scouting up to 10 sites for biocarbon plants for steelmaking.
Kelly McCloskey, Tree Frog News Editor
CALGARY — Canada’s lumber and steel industries are warning that expanding overseas sales cannot make up for losing access to the American market as tariffs threaten mills, jobs and manufacturing output. Industry representatives told the Senate national finance committee that Canada faces significant limits in shifting exports to other countries, Blacklock’s Reporter reported. Derek Nighbor, CEO of the Forest Products Association of Canada, said Canadian lumber and wood products sales to the US total about $14 billion annually. “It’s not a matter of just putting sticks on a boat and sending them somewhere else,” Nighbor testified. While producers see potential in Japan, China, South Korea and the European Union, Nighbor cautioned those markets cannot absorb enough Canadian products to replace American demand. … Further growth requires work on building codes, relationships with governments and local businesses, and training builders to use Canadian wood products.
The announcement that BC’s Howe Sound pulp and paper operation will remain open after securing government support has reignited questions about whether a similar intervention could have been pursued for Canfor’s Northwood pulp mill in Prince George. Domtar’s future has changed dramatically following discussions involving government officials, the company and union representatives. According to Unifor’s Gavin McGarrigle, government assistance played a critical role. …For critics of the provincial government’s response to the Northwood closure, the contrasting outcomes raise difficult questions. …McGarrigle argues the key difference lies in the willingness of the parties involved to engage. …Canfor disputes the notion that support for Northwood was not pursued. …“Canfor has been advocating for years to address the critical shortfall of economic fibre needed to sustain our manufacturing facilities. …With respect to our pulp operations in the region, we are intensely focused on ensuring a strong future for Intercon and Specialty Paper operations in Prince George.
President Trump’s near-global tariff policy is being challenged in federal court — again. A panel of three judges at the US Court of International Trade heard arguments from a group of small businesses and Democratic-led states who say Trump’s sweeping “Section 301” tariffs overstep the law. It’s the third time in less than two years that the courts have been asked to intervene against the president’s attempt to impose sweeping tariffs on the vast majority of U.S. imports. The latest tariffs put 10% or 12.5% rates on goods from 86 countries, covering 99.4% of US imports. The Trump administration said they were imposed in response to the targeted countries failing to effectively enforce bans on the trade of goods produced using forced labor practices. But an attorney for the challengers said at the start of Wednesday’s hearing that a “constellation of factors” show the government’s justification was a “pretext” in pursuit of reviving Trump’s worldwide tariff regime.
Lumber futures fell to $527 per thousand board feet, reaching their lowest level in two years, as rising borrowing costs weighed on housing demand. Growing concerns over inflationary pressures and government debt have strengthened expectations of higher-for-longer interest rates and fueled a broader sell-off in the bond market, pushing sovereign yields to their highest levels in over two decades. As a result, mortgage rates climbed to 7.3%, their highest level in three years, further straining an already weak housing market. Although lacking any particular economic significance, economists refer to the 7% threshold as a psychological ceiling.
