{"id":77543,"date":"2019-06-03T10:46:29","date_gmt":"2019-06-03T10:46:29","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/bc-forestry-giants-see-sharp-drop-at-the-stock-market\/"},"modified":"2025-09-19T08:50:53","modified_gmt":"2025-09-19T08:50:53","slug":"bc-forestry-giants-see-sharp-drop-at-the-stock-market","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/bc-forestry-giants-see-sharp-drop-at-the-stock-market\/","title":{"rendered":"BC forestry giants see sharp drop at the stock market"},"content":{"rendered":"

A closer look at any stock chart could reveal how the BC forest companies have slide down to three-year lows.<\/strong><\/em><\/p>\n

According to Business in Vancouver, the stock chart for major companies, like West Fraser Timber Co. or medium-sized companies, like Conifex Timber Inc., highlight the same outlook. They have all started to rise in the early 2017, with peaks in the summer of 2018, but have, since then, started to descend dramatically.<\/p>\n

For example, Canfor Corp. reported $126 million in operating income from lumber sales during the Q1\/2018, but $126 million in operating income from lumber sales for the Q1\/2019. Moreover, the company\u2019s stock price decreased by 65% in one year, to $10.93 per share on May 14, 2019.<\/p>\n

Thus, during the Q1\/2019, forest companies in B.C. reported lower prices for lumber in the US, together with higher costs for logs. Also, the new layers of regulations in B.C. may affect the market and lower future investments in the province.<\/p>\n

Referring to West Fraser Timber\u2019s profit reports, John Rustad, the BC Liberal critic for forestry, said: \u201cIt showed them making solid profits in Alberta; they\u2019re making solid profits in their operations in the States and they\u2019re losing money on their operations in B.C. Alberta and B.C., you\u2019ve got the same market conditions. You\u2019re struggling getting wood into the United States. The difference is, British Columbia has become the highest-cost producer in North America<\/em>.\u201d<\/p>\n

As BIV reported, companies cite the fact that it\u2019s becoming more and more expensive to operate in B.C. As a result, many companies have been taking temporary curtailments and eliminating shifts.<\/p>\n

\u201cWe expect the July 1 market-based stumpage adjustment to put severe additional pressure on British Columbia production levels, which could result in additional curtailments across the industry, given the increasingly challenging competitive environment<\/em>,\u201d Canfor CEO Don Kayne said in a recent analyst call.<\/p>\n

Tolko Industries has already permanently closed its Quest Wood sawmill in Quesnel and eliminated one shift in Kelowna, as a response to the high operating costs.<\/p>\n

Besides the shrinking timber supply and high log costs, the province goes through new regulations, such as:<\/p>\n