{"id":80974,"date":"2021-07-14T09:55:21","date_gmt":"2021-07-14T09:55:21","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/bc-log-costs-surge-lumber-producers-move-south\/"},"modified":"2025-09-19T08:55:48","modified_gmt":"2025-09-19T08:55:48","slug":"bc-log-costs-surge-lumber-producers-move-south","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/bc-log-costs-surge-lumber-producers-move-south\/","title":{"rendered":"BC log costs surge as lumber producers move South"},"content":{"rendered":"
\n

British Columbia is sharply increasing the cost of trees for lumber producers just as wood-product prices slump and Canadian sawmills expand in the U.S.<\/em><\/p>\n

Lumber producers will pay C$94.54 ($76.22) per cubic meter of coniferous saw log from the province\u2019s interior in the third quarter, a 74% jump from this quarter and more than triple what they paid a year ago, according to a government\u00a0website.<\/p>\n

The forest-rich Canadian province\u2019s tree prices decrease the ability of lumber producers to compete against sawmills in the U.S. Producers could be further encouraged to shift operations south of the border because of rising costs, reduced timber availability due to\u00a0mountain pine beetles\u00a0that destroyed 15 years of log supplies and the possibility that the U.S. will double its\u00a0softwood lumber tariff\u00a0later this year.<\/p>\n

Canada is a top exporter of softwood lumber, with British Columbia leading<\/span>\u00a0shipments to the U.S. The province\u2019s rates were designed to provide stability against a volatile market, at a lag of two to three months.<\/p>\n

The price increase follows a yearlong rally that vaulted U.S. lumber futures to a record high in May -- more than quadrupling in 12 months -- on a home building and renovations boom that gave producers record quarterly revenues. Futures have since tumbled about 55% but remain at historically high prices.<\/p>\n

\u201cNorth American production growth is constrained by log availability in multiple regions, particularly British Columbia,\u201d\u00a0West Fraser Timber Co.\u00a0said in an emailed statement. \u201cWe believe the U.S. south is the region with the most potential for production growth over the long term.\u201d<\/p>\n

The Vancouver-based company is the world\u2019s biggest lumber producer, and has already\u00a0shifted\u00a048% of its North American capacity to the U.S. South. It also plans to\u00a0invest $150 million\u00a0to expand five of its U.S. mills to meet strong home building demand.<\/p>\n

Burnaby, British Columbia-based\u00a0Interfor Corp.\u00a0recently said it will buy\u00a0four U.S. sawmill operations\u00a0from Georgia-Pacific LLC as part of its U.S.-focused growth plan, which will see 77% of its capacity south of the Canadian border \u201cwith no duty exposure,\u201d the company said in a\u00a0presentation.<\/p>\n

In neighboring Alberta, which accounts for about 15% of Canada\u2019s softwood lumber production and where\u00a0rates\u00a0are updated monthly, stumpage costs have increased more than 11-fold in the last year.<\/p>\n

\u201cRight now, log prices in B.C. are about triple what they are in U.S. South. They are so far gone on a log-cost basis from what\u2019s going on in the U.S. south, it\u2019s literally like they\u2019re operating in two industries,\u201d said Matt Fine, portfolio manager for Third Avenue Management in New York.<\/p>\n

\u201cIt\u2019s really tough in B.C. on a relative basis, which is why you\u2019re seeing virtually no investment in B.C.\u201d<\/p>\n

While much of Canada\u2019s harvestable timberlands are government owned, southern yellow pine plantations in the U.S. are largely private.<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

British Columbia is sharply increasing the cost of trees for lumber producers just as wood-product prices slump and Canadian sawmills expand in the U.S. Lumber producers will pay C$94.54 ($76.22) per cubic meter of coniferous saw log from the province\u2019s … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":63203,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716,4715,4714],"tags":[4018,3284,3286],"class_list":["post-80974","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","category-market-analysis","category-wood-industry-prices","tag-bc","tag-logs","tag-prices","topic-forestry","topic-industry-prices","topic-sawmilling","area-north-america"],"acf":[],"yoast_head":"\nBC log costs surge as lumber producers move South - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/bc-log-costs-surge-lumber-producers-move-south\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"BC log costs surge as lumber producers move South - 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