{"id":81033,"date":"2021-07-29T10:51:28","date_gmt":"2021-07-29T10:51:28","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/n-american-lumber-prices-surge-sharply-canada-wildfires-cut-sawmills-production\/"},"modified":"2025-09-19T08:55:52","modified_gmt":"2025-09-19T08:55:52","slug":"n-american-lumber-prices-surge-sharply-canada-wildfires-cut-sawmills-production","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/n-american-lumber-prices-surge-sharply-canada-wildfires-cut-sawmills-production\/","title":{"rendered":"N. American lumber prices surge sharply as Canada wildfires cut sawmills production"},"content":{"rendered":"

Lumber futures rose the most in more than a year on concern that wildfires in western Canada will reduce supply and spur more curtailments at sawmills.<\/em><\/p>\n

British Columbia declared a state of emergency and Canfor Corp. said it would trim output as the fires snarl transportation and supply chains. Lumber futures jumped more than 7 per centin Chicago.<\/p>\n

The rebound extends wild gyrations that took lumber prices from a record high in May on a pandemic-fuelled construction boom to an eight-month low earlier this week after demand eased and supply was replenished. British Columbia is Canada\u2019s biggest exporter of lumber to the U.S.<\/p>\n

\u201cWe expect further curtailments in the next two weeks,\u201d BMO Capital Markets timber and wood products analyst Mark Wilde said in a report, while noting that inventories at many producers are ample after months of rebuilding supplies.<\/p>\n

Lumber for September delivery gained 7.7 per cent to US$584 per thousand board feet at 11:24 a.m. on the Chicago Mercantile Exchange, the biggest percentage gain since April 2020. The price is still more than 60 per cent below the high reached in May.<\/p>\n

Rail transportation in British Columbia has been hindered since a June 30 fire damaged the tracks of the two main railways that carry goods to Vancouver for export, causing congestion at the port. Lines have since been repaired, but rail movement has been slow and sporadically halted due to fires.<\/p>\n

The wildfires are not completely bullish for the lumber market, said Westline Capital Strategies Inc. Chief Executive Officer Greg Kuta, whose Ohio-based firm specializes in lumber-trading strategies.<\/p>\n

\u201cThe mills are all swimming in their wood now,\u201d Kuta said. \u201cWe need to see takeaway increase dramatically in the secondary, end-user markets and export markets to right the ship in cash,\u201d he said, referring to the need for wood to be shipped from producers to lumberyards.<\/p>\n

Sawmills will have a difficult time selling wood they can\u2019t transport, and they need sales and shipments to flush out the existing high-priced inventory that is on the industry\u2019s books right now.<\/p>\n

Tumbling lumber prices are also \u201cpieces of Canfor\u2019s equation,\u201d BMO\u2019s Wilde said, noting the steep two-month collapse in pricing as do-it-yourself renovation demand has dropped by a reported 40 per cent at big-box retailers.<\/p>\n

\u201cAt those levels, some B.C. mills may need a snorkel,\u201d he said.<\/p>\n

\u201cAfter a year of \u2018chasing inventory,\u2019 the market is now struggling with bulging inventories at many mills in the U.S. and Canada,\u201d he said.<\/p>","protected":false},"excerpt":{"rendered":"

Lumber futures rose the most in more than a year on concern that wildfires in western Canada will reduce supply and spur more curtailments at sawmills. British Columbia declared a state of emergency and Canfor Corp. said it would trim … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":60629,"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":[3945,3405,4535],"class_list":["post-81033","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","category-market-analysis","category-wood-industry-prices","tag-lumber-prices","tag-north-america","tag-wildfire","topic-forestry","topic-industry-prices","topic-sawmilling","area-north-america"],"acf":[],"yoast_head":"\nN. 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