Markets
Oct. 23, 2018 – Despite lower third quarter SPF and plywood prices, West Fraser produced results that, while off the record pace of the second quarter, were still significantly ahead of the third quarter of 2017.
Oct. 22, 2018 –  Led by a drop in multifamily production, total housing starts fell 5.3 per cent in September to a seasonally adjusted annual rate of 1.2 million units, according to newly released data from the U.S. Department of Housing and Urban Development and the Commerce Department.
Oct. 17, 2018 – Worldwide trade of lumber inched up again in early 2018, hinting that this may be another record year. Six of the ten largest lumber-exporting countries in the world have increased their shipments in 2018, with exports from Russia, Germany, Ukraine and Austria increasing the most year-over-year.
Oct. 17 – Builder confidence in the market for newly-built
single-family homes rose one point to 68 in October on the National
Association of Home Builders/Wells Fargo Housing Market Index (HMI).
Builder confidence levels have held in the high 60s since June.
Oct. 12, 2018 – Interfor Corporation today announced plans to temporarily reduce production across its operating platform in the B.C. Interior in Q4 2018 due to a combination of declining lumber prices and escalating log costs.
Oct. 10, 2018 - Lumber prices in the U.S. have experienced a spectacular surge in 2017 and the first half of 2018. By the end of the Q2 2018, the benchmark lumber price index reported by the market report Random Lengths reached its highest level in at least 30 years. From Jan. 2017 to June 2018, average prices for commonly traded lumber in the U.S. increased by 40 per cent. During the same period, sawlog prices were practically unchanged in the U.S. South and rose about 28 per cent in Western U.S., resulting in higher gross margins in 2018 for sawmills in both regions. Similar developments have occurred in Canada, leading to record high profitability for many of the country’s sawmills thanks to the high lumber prices in the U.S.
Oct. 9, 2018 – A newly released study by ForestEdge and Wood Resources International forecasts that U.S. softwood lumber demand will grow at an annual rate of 2.3 per cent through 2030, which will be higher than the reports projection of real GDP. The study’s Base Case demand scenario suggests that U.S. lumber consumption will reach an all-time high by 2030.
Oct. 1, 2018 - The BC Lumber Trade Council issued a statement today with respect to Canada and the U.S. concluding the United States-Mexico-Canada Agreement [USMCA].
Sept. 19, 2018 - Total housing starts increased 9.2 per cent in August to a seasonally adjusted annual rate of 1.28 million units, according to newly released data from the U.S. Department of Housing and Urban Development and the Commerce Department.
Sept. 18, 2018 - Builder confidence in the market for newly-built single-family homes remained unchanged at a solid 67 reading in September on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).
Aug. 23, 2018 - Lumber prices in the U.S., have experienced a spectacular surge in 2017 and the first half of 2018. By the end of the 2Q/18, the benchmark lumber price index reported by the market report Random Lengths reached its highest level in at least 30 years. From January 2017 to June 2018, average prices for commonly traded lumber in the U.S., increased by 40 per cent. During the same period, sawlog prices were practically unchanged in the U.S., South and rose about 28 per cent in Western U.S., resulting in higher gross margins in 2018 for sawmills in both regions. Similar developments have occurred in Canada, leading to record high profitability for many of the country’s sawmills thanks to the high lumber prices in the U.S.

Wood costs are by far the largest and most important cost component when manufacturing softwood lumber and are often the factor that determines a lumber company’s competitiveness. The Wood Resource Quarterly (WRQ) has tracked quarterly sawlog prices worldwide since 1995. This publication also discusses quarterly sawmill gross margins for key lumber-producing regions around the world. In its latest issue, quarterly sawlog costs, lumber prices and gross margins for sawmills in eight key regions worldwide are reported for the period 1Q/05 to 2Q/18. The gross margin is defined as the net wood costs (sawlog costs minus the income from sawmill residuals) deducted from lumber revenues and is a reliable indicator of the changing trend in profitability in a region’s sawmill sector.

In the 2Q/18, profits for sawmills in North America reached their highest levels since at least 2005, primarily because lumber prices have risen faster than sawlog prices. In Europe, the gross margins in early 2018 were close to the highest they have been in four years in the Nordic countries, while they reached levels not seen in over a decade in other parts of the continent.

However, not all countries have experienced positive earning trends the past few years. Sawmills in Eastern Russia, New Zealand and Brazil saw their gross margins decline from 2015 to early 2018 as sawlog prices rose faster than lumber prices. In Siberia, the gross margin has fallen 21 per cent in three years with the 2Q/18 levels being the lowest since 2013. Most of the decline has been the result of higher costs for sawlogs for a growing sawmilling sector in Eastern Russia.



Global lumber, sawlog and pulpwood market reporting is included in the 56-page quarterly publication Wood Resource Quarterly (WRQ). The report, which was established in 1988 and has subscribers in over 30 countries, tracks sawlog, pulpwood, wood chip, lumber and pellet prices, trade and market developments in most key regions around the world. To subscribe to the WRQ, please go to www.WoodPrices.com
Aug. 16, 2018 - Total housing starts inched up 0.9 per cent in July to a seasonally adjusted annual rate of 1.17 million units, according to newly released data from the U.S. Department of Housing and Urban Development and the Commerce Department.
Aug. 15, 2018 - Taiga Building Products Ltd. announced the successful completion of its previously announced acquisition of all of the issued and outstanding common shares of Exterior Wood, Inc., a private operator of a wood treatment facility and distribution centre in Washington State. The purchase price was funded primarily using Taiga’s existing senior credit facility.

Taiga produces preserved lumber at three plants strategically located to service the Canadian market. As well, Taiga exports products into markets in Asia, Central and South America, and the Middle East.
Aug. 15, 2018 - In 2017, the total revenue of the 10 biggest forest products companies in Russia amounted 339.4 billion rubles ($5.1 billion), according to the annual Top 50 Russian forest-based sector companies rating published by Lesnaya Industriya Magazine. The top three leaders of the rating have not changed: Ilim Group, Mondi Syktyvkar, Segezha Group.
Aug. 10, 2018 - Conifex Timber Inc. has reported results for the second quarter ended June 30, 2018.
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