{"id":76947,"date":"2019-01-14T11:01:47","date_gmt":"2019-01-14T11:01:47","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/british-columbia-lumber-market-sees-great-improvement-exports-china\/"},"modified":"2025-09-19T08:49:43","modified_gmt":"2025-09-19T08:49:43","slug":"british-columbia-lumber-market-sees-great-improvement-exports-china","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/british-columbia-lumber-market-sees-great-improvement-exports-china\/","title":{"rendered":"British Columbia lumber market sees great improvement in exports to China"},"content":{"rendered":"

British Columbia lumber producers are getting ready for a rough 2019, considering the\u00a0concerns over Canada-China trade, the US housing market and American tariffs on Canadian softwood.<\/em><\/p>\n

According to The Globe and Mail, there is still a huge long-term\u00a0opportunity for boosting lumber exports to China remains huge, despite recent trade tensions.\u00a0British Columbia accounts for 97 per cent of Canadian lumber exports to China.<\/p>\n

Delegates from Canfor and other B.C. forestry firms such as West Fraser Timber Co. Ltd., Interfor Corp., Conifex Timber Inc. and Tolko Industries Ltd. went to China in December, to promote their lumber and other wood products<\/p>\n

\u201cChina is a very important export market for Canfor and the forest industry.\u00a0\u201cWe have had positive meetings with senior Chinese government officials and customers as we continue to explore opportunities to expand the uses of wood products and pulp<\/em>,\u201d\u00a0Don Kayne, chief executive officer of Vancouver-based Canfor Corp. said.<\/p>\n

In an interview before embarking on the trade mission, Mr. Kayne said he is undaunted by short-term disruptions and stock-price volatility. \u201cWe\u2019re looking out five years and 10 years. We\u2019re looking at how do we build this company for the future, from a diversification point of view and strategic aspects<\/em>,\u201d he said.<\/p>\n

As reported by The Globe and Mail, over the past decade, B.C. producers have been striving to reduce their reliance on the American market, with China and Japan becoming the top two customers in Asia for B.C. wood products. The U.S. housing market that boomed in recent years has cooled off. Experts forecast that new residential construction in the United States will grow at a slower pace in 2019 than formerly thought.<\/p>\n

As well, the long-running softwood dispute between Canada and the United States is expected to continue into 2019 and 2020. The U.S. Department of Commerce collected final countervailing and anti-dumping tariffs averaging 20.23 per cent against most Canadian lumber producers in 2018.<\/p>\n

Adding to the Canada-U.S. uncertainty, lumber prices are in a slump. Benchmark two-by-fours made from western spruce, pine and fir decreased to US$328 for 1,000 board feet in December, down 47 per cent when compared with US$622 in June, according to Madison\u2019s Lumber Reporter.<\/p>\n

\u201cPrices haven\u2019t found strength and log cost\/supply constraints are not going away anytime soon<\/em>,\u201d RBC Dominion Securities Inc. analyst Paul Quinn said in a research note.<\/p>\n

British Columbia is by far Canada\u2019s largest lumber exporter into the United States, with a 53.1-percent share of the total value in 2017, followed by Quebec (18.3 per cent), Alberta (11.5 per cent), Ontario (7.8 per cent) and New Brunswick (6.5 per cent).<\/p>\n

Susan Yurkovich, president of the B.C.-based Council of Forest Industries, said she is optimistic about the prospects for long-term growth in lumber exports to China, which is B.C.\u2019s second-largest customer. In 2017, China accounted for 16 per cent of B.C. lumber sold to foreign buyers while the United States remained the largest purchaser with 63 per cent of the total export value, The Globe and Mail reported.<\/p>\n

China\u2019s market has become increasingly important, ordering $1.07-billion worth of B.C. lumber in 2017, compared with $177-million in 2008. But the value of B.C. softwood shipped to China fell in 2018 compared with 2017 as the sharp drop in lumber prices in the second half of 2018 took its toll.<\/p>\n

\u201cOur industry is highly resilient<\/em>,\u201d said Ms. Yurkovich, who joined Mr. Kayne and other B.C. forestry executives during the swing through China. \u201cAsia in general, and China in particular, continues to be a very important market for B.C. wood products.<\/em>\u201d<\/p>\n

Guy Saint-Jacques, a senior fellow at the University of Alberta\u2019s China Institute and a former Canadian ambassador to China, said it\u2019s understandable that the forestry industry delegation decided to continue onto China since meetings were scheduled months ago, but other Canadian executives will likely take a wait-and-see attitude on travel plans in 2019.<\/p>\n

\u201cThe Canadian government has to use all available communication channels to try to impress on the Chinese that we have to lower the temperature because we run the risk of causing lasting damage to the relationship,<\/em>\u201d he said.<\/p>\n

Capital Economics senior economist Stephen Brown cautions that Canada\u2019s forestry sector is among the industries exposed to potential retaliation from China. \u201cIf tensions escalate much further, we suspect the most likely response from China will be measures to boycott Canada\u2019s exports<\/em>,\u201d Mr. Brown said in a research note.<\/p>","protected":false},"excerpt":{"rendered":"

British Columbia lumber producers are getting ready for a rough 2019, considering the\u00a0concerns over Canada-China trade, the US housing market and American tariffs on Canadian softwood. According to The Globe and Mail, there is still a huge long-term\u00a0opportunity for boosting … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":59416,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716,4715],"tags":[3288,3254,3309,3306],"class_list":["post-76947","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","category-market-analysis","tag-british-columbia","tag-china","tag-exports","tag-lumber","topic-forestry","topic-sawmilling","area-china","area-north-america"],"acf":[],"yoast_head":"\nBritish Columbia lumber market sees great improvement in exports to China<\/title>\n<meta name=\"description\" content=\"British Columbia lumber producers are getting ready for a rough 2019, considering the\u00a0concerns over Canada-China trade and the US housing 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