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Canfor Doubles Quesnel Summer Shut

By 250 News

Wednesday, June 17, 2009 04:58 PM

Prince George, B.C. – In addition to the recently announced indefinite closures at three BC sawmills,  ( Rustad, Vavenby and Radium ) Canfor has made a change to its lumber curtailment schedule for the summer.
 
Starting Monday, June 22nd, Canfor’s Quesnel mill will be shut down for 4 weeks, that’s twice the length of time originally planned. 
 
Here are the summer shut down dates for the other   Canfor mills:
  • P.G. Sawmill will be closed for the weeks of July 13 and July 20th 
  • Isle Pierre will be closed for one week starting July 6th
  • Plateau will be closed for one week, starting August 3rd
  • Clear Lake will be closed for two weeks starting June 29th and again during the week of July 6th
  • Houston will be closed for one week starting June 29th
  • Polar will be closed for two weeks, July 27th and August 3rd, and
  • Fort St. John will be closed for two weeks, July 20th and July 27th
 
This summer shuts will remove approximately 95 million board feet of SPF (spruce-pine-fir) and SYP (southern yellow pine) lumber production.
 
The previously announced indefinite closures of its Rustad, Vavenby and Radium sawmills,represent an additional 560 million board feet of SPF lumber production on an annualized basis.
 
The Rustad mill in Prince George is expected to use up its inventory of logs in the beginning of July, and the last of the finished product is expected to be shipped in early August.   Once that final shipment has been made, the mill will be closed and 205 people will be on the unemployment line.

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Comments

Are the Yanks the only people in the world that want to buy our lumber? They've only got that crappy Georgia Yellow Pine to use. Not being part of the forest industry, it still irks me that the Americans a making life difficult for us. How about focusing sales people to flog our lumber every where else in the world but the USA? Or is there a problem there? Geez!
I think part of the problem is that lumber is not used as extensively as a building material in other parts of the world as it is here. I think allot of stone, brick and metal is used elsewhere.

What are the company's wanting for concessions with the unions? Since this is a contract year I am betting all the steelworkers mills will be down from either a lockout or strike.
The lumber traders who have pushed the prices up to around $195 would agree.
It's extremly frustrating given these new tactical shuy downs.If people pay close attention to the US market as a whole the picture is very interesting. The US housing market continues to press forward with surprising gains in new home and apartment construction according to the US Commerce Department. Add to this the pleading from Colorado, Idaho, Montana, Oregon and washington states. They are all concerned about their own pandemic which is killing off millions of hectares of prime pine forest. Then take into account the hundreds of US saw mill operations running with outdated technology that is ill equipped to handle the product that comes after the Beetle.So one ask's where is the wood coming from to meet the present and future demands of US construction industry when lumber yards in the US are allready selling low quality wood and the demand is on the rise? Try Sweden, Germany, Chile for starters and it's tariff free and their useing prime Russian logs imported.So why pick on BC mills as the culprit responsible for US mill closures? its because we are weak and a deflective target as apposed to picking on those that will fight back. Knowing this won't restart our Mills closed down. workers have to understand they are not the problem but the solution. We produce the best Quality product in the world and should not be played for suckers by reducing our standards, wages, or working conditions because the industry believes its their grand opportunity to jump on our backs when were down.Everyone wants our industry to make it though these times but when you have one part of the team playing on both sides of the fence and the politicians sitting on it afraid to offend anyone except the workers and the families they swore to protect, you have to question why throw in the towel why not push back and start asking some questions and not just excepting what the industry wants you to except. Times are not good in the forest industry but if they want to really work through this then dont target workers and familys, target the real problem.Handing out welfare and Employment insurance extenions is not the answer, we need politcal back bone in this country not four flocks of parrots that mimic each other year after year. It's Just one mans opinion.
hey before I am corrected it's shut downs, just a small mistake that can surly be over looked given the content of the message.
Come on guys, you seriously think the forest companies aren't trying to flog their product to wherever whoever will take it, in whatever country?

Tactical shutdowns to break the unions??? Come on seriously? The mills orchestrated a collapse in the lumber market to squeeze the unions??? I am sure the mills would rather be making money than losing a 100 million per quarter.

Market is oversupplied. Has been for too long. There isn't much that can be done in Canada to fix the USA demand for lumber. Any politician that says there is, is just that, a politician play politics.

yah, it sucks. But it'll come around eventually.



who said anything about trying to break Unions? but your right the industry will turn around late this year or next if the present trend keeps moving forward. So don't sell the farm and don't let industry take all the livestock.
I wonder if we could buy lumber locally for $210 per thousand board feet would that encourage more people to build. The prices charged in the local retail stores are closer to $600 per board foot.
Not good...not good!
Lumber is sold at the New York Commodity price Ie; so much per 1000 FBM, or a daily basis. In theory you should be able to get lumber in Prince George for the New York price minus freight.

However Prince George and its stores have a history of gouging the local yokels, whether it be lumber, cars,gas, produce, or whatever, so dont expect any deals.

The US housing market is in the tank. Too many houses built in the last few years, and then the mortage crisis, etc; Dont expect a big turnaround for a year or more.

Its highly unlikely that the US Market will ever bounce back to where it was, so some mills will close permanently. Some mills will go to one or two shifts, when necessary to pick up any slack. That will be the end of it.

We can increase sales to some other Countries, however we have lots of competition out there so dont expect too much.
"Lumber is sold at the New York Commodity price Ie; so much per 1000 FBM, or a daily basis. In theory you should be able to get lumber in Prince George for the New York price minus freight."

....if you are prepared to take delivery of several truckloads.

They don't sell it at that price by the board.
I bought a couple of lifts of lumber from Dollar Save Lumber earlier this year and they were in dire straights... apparently the local mills won't even sell them bulk sales of lumber for the going New York Commodity prices... they are forced to buy high and sell low... apparently when the mills were moving a lot of lumber it was easy for them to get discounts and now that the mills aren't moving lumber they won't give out any more discounts.... One would think this is the time when a lumber resale operation could get a deal on its lumber, but its not the case?

IMO its because the mills are down to 1-2 shifts, rather than 3 to spreed the unit cost of overhead, and as a result they have less room to wheel and deal. IMO this is the same for all industries in this downturn and will be a significant source of future inflation.