B.C. softwood lumber exports plunge as U.S. duties and slowing construction reduce demand

By Brent Jang
The Globe and Mail
August 13, 2019
Category: Business & Politics
Region: Canada, United States

The value of B.C. softwood shipments into the United States has plunged 25 per cent as American duties and lower-than-expected home construction south of the border reduce demand. In the first half of this year, producers in BC sent softwood worth $1.5-billion to the United States, compared with $2-billion in the same period last year, according to trade data compiled by the B.C. government. The volume of lumber exports has also tumbled… down 10 per cent from the same period in 2018. …The slump in exports to Canada’s largest trading partner underscores the tough times faced by B.C. lumber producers, including Canfor Corp. …The combination of excess supplies and dampened demand has translated into lower prices for lumber products. …“It will not be until 2020 before a better supply/demand balance occurs to raise prices,” Russ Taylor, managing director at wood research company Forest Economic Advisors Canada, said in an August report. [to access the full story a Globe & Mail subscription is required]

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