Lumber futures fell four per cent to $433 per 1,000 board feet in Chicago on Thursday, extending a slump to about 62 per cent this year.Start your day with a roundup of B.C.-focused news and opinion delivered straight to your inbox at 7 a.m., Monday to Friday.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc.
“We are below the bottom, so B.C. producers are losing money,” Quinn said in an email. “I suspect we will get a number of sawmill closures over the next year.” The move is a stark reversal from the all-time highs set in 2021 during a pandemic-fueled homebuilding boom and comes as this year’s surge in borrowing costs has made homes too pricey for buyers. The U.S. Federal Reserve’s rate hike this week added to the gloom and Chair Jerome Powell said the housing market was ‘very overheated’ during the pandemic.Article content
Canadian producers West Fraser Timber Co. and Canfor Corp. already announced reductions in output at B.C. sawmills this year. U.S homebuilders get more than a quarter of their lumber from Canada.Vaughn Palmer: B.C. forest companies expanding at a rapid pace, but not at homeOur in-depth journalism is possible thanks to the support of our subscribers. For just $3.50 per week, you can get unlimited, ad-lite access to The Vancouver Sun, The Province, National Post and 13 other Canadian news sites.
Lumber prices aren’t cheap when I looked.