{"id":78508,"date":"2019-11-28T12:33:17","date_gmt":"2019-11-28T12:33:17","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/isc-2019-2-canadian-lumber-industry-crisis-crisis\/"},"modified":"2025-09-19T08:52:09","modified_gmt":"2025-09-19T08:52:09","slug":"isc-2019-2-canadian-lumber-industry-crisis-crisis","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/isc-2019-2-canadian-lumber-industry-crisis-crisis\/","title":{"rendered":"ISC 2019 2: Canadian lumber industry in crisis after crisis"},"content":{"rendered":"

On October 17 and 18, 2019, the 67th International Softwood Conference took place in Antwerp in the Radisson Blu Astrid Hotel.\u00a0It was largely under the impact of the bark beetle catastrophe in Europe and international distortions in the trade.\u00a0The industry is still fundamentally optimistic, but urges caution.\u00a0Mark Brinkmeyer,\u00a0CEO of the Idaho Forest Group,\u00a0 and David Calabrigo, representing Canfor, gave an overview of the current trends in the U.S. and Canadian lumber industry.<\/em><\/p>\n

USA: Construction industry picks up<\/strong><\/p>\n

\"MarkMark Brinkmeyer, CEO of the Idaho Forest Group, the eighth largest lumber producer in the US, outlined the market situation in the United States. Lately, lumber production in the South of the US has risen more strongly than in the other North American regions.\u00a0It has recently dropped in British Columbia.<\/p>\n

Lumber prices across North America have fallen sharply since the price peak in June 2018, and more so than in comparable situations after price spikes.\u00a0Prices dropped sharply, settling around $ 250 below the peak of around $ 630 \/ Mfbm in October.\u00a0<\/span>Since then they remain there with slight fluctuations.\u00a0Margins have fallen dramatically, especially in British Columbia, to about a quarter of 2015 levels.\u00a0In the south of the US, margins are still sufficient despite the decline.\u00a0As a result, production is increasingly shifting to the southern United States, where 40% of North American lumber is now produced.<\/p>\n

Construction activity in the US continues to pick up, especially for single-family homes (2020: + 11%).\u00a0Apartment buildings are in decline (2020: -5%).\u00a0Overall, construction starts in 2019 increased by 5% to 1.36 million.\u00a0In 2020, an increase of 6% to 1.45 million is expected.\u00a0Mass Timber, especially CLT (Cross Laminated Timber), is becoming increasingly important.\u00a0US CLT production capacity will reach 367,000 m3 by the end of 2019.\u00a0especially for single-family homes (2020: + 11%).\u00a0Apartment buildings are in decline (2020: -5%).<\/p>\n

Overall, construction starts in 2019 increased by 5% to 1.36 million.\u00a0In 2020, an increase of 6% to 1.45 million is expected.\u00a0 Apartment buildings are in decline (2020: -5%).\u00a0Overall, construction starts in 2019 increased by 5% to 1.36 million.\u00a0In 2020, an increase of 6% to 1.45 million is expected.<\/p>\n

Canada: Crisis after crisis<\/strong><\/p>\n

\"DavidFor David Calabrigo of the Canadian timber company Canfor, the sawmill industry in western Canada has been shaped by the calamity of the Mountain Pine Beetle over the last two decades, which began in the late 1990s at Tweedsmuir Park, a wilderness park in the province of British Columbia.<\/p>\n

Due to a slow response, the calamity spread to 18 million ha in British Columbia alone.\u00a0In 2006, the provincial government predicted that by 2013, 80% of Lodgepole Pines would have died.\u00a0From 2007, the beetle across the Rocky Mountains across to Alberta have spread.<\/p>\n

World lumber demand will rise to 400 million m3 by 2025, 61 million m3 more than in 2017 and 75 million m3 more than in 2006, when it peaked before the banking and financial crisis.\u00a0The Western Canadian sawmills are currently unable to participate in this development as desired.\u00a0The bark beetle calamity is over, the amount of felling is falling, the lumber market is being slowed down by US tariffs and Chinese buying restraint.\u00a0As a result, many sawmills are closing.\u00a0Around 4.8 million m3 of production capacity have been withdrawn from British Columbia.<\/p>\n

From the BC beetle calamity one can learn that there is no time to wait and the fight should start immediately. A coordination and communication between state and industry is needed.\u00a0Forest health is crucial for the future of the wood industry, according to Calabrigo.<\/p>\n

For Canada, among others, there are many market opportunities in China, where for Canadian wood, in contrast to US market, no duties are levied. Canada is going to rely more on higher added value through further processing.\u00a0And the trend towards timber construction will help the industry worldwide.<\/p>","protected":false},"excerpt":{"rendered":"

On October 17 and 18, 2019, the 67th International Softwood Conference took place in Antwerp in the Radisson Blu Astrid Hotel.\u00a0It was largely under the impact of the bark beetle catastrophe in Europe and international distortions in the trade.\u00a0The industry … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":63686,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716,4715],"tags":[3313,3496,4240,3497,3306,3352],"class_list":["post-78508","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","category-market-analysis","tag-canada","tag-conference","tag-crisis","tag-international","tag-lumber","tag-softwood","topic-forestry","topic-industry-prices","topic-sawmilling","topic-wood-construction","area-north-america"],"acf":[],"yoast_head":"\nISC 2019 2: Canadian lumber industry in crisis after crisis - 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