The near-term outlook for lumber producers in British Columbia could be more dire than previously thought. The industry, already reeling from weak product markets, is contending with escalating log costs due to declining timber supply and a likely increase in stumpage prices in July. This has forced the announcement of permanent closures at two mills in the province and numerous curtailments over the past month. The potential of an emergency order from the federal government protecting Caribou habitat as soon as the end of June would be a devastating blow to the BC forest sector and would likely lead to more permanent closures in the coming months.
If you are interested in more detail about the declining woodfiber impact on the BC industry, check out the upcoming report, British Columbia Interior Regional Fiber Supply Forecast.