'Extreme' supply chain snafus hit lumber industry, forcing output curbs as prices hover near record

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Canfor shifts to four\u002Dday workweek after running out of room to pile boards being ordered at startling rate amid railcar shortage

in a speech on March 25. “This is primarily because it has caused global prices for oil and other commodities to surge. The result is inflation in the near term that is expected to be higher than we projected in January.”Article content

Data about pricing varies, but in 2020, benchmark southern lumber reached $1,169 per thousand board feet, nearly double the previous all-time high $589, while western lumber prices were close behindaccording to an investor presentation on the website of Quesnel, B.C.-based West Fraser Timber Co. Ltd., Canada’s largest lumber company by market capitalization.

The drop to a four-day week was only the latest evidence of Canfor’s inventory problems. A day before the announcement, a subsidiary, Canfor Pulp Products Inc., Severe flooding and wildfires throughout the interior of British Columbia left lumber producers, but also companies such as Teck Resources Ltd., which mines steelmaking coal in the region, unable to transport their product to market. That caused inventory levels to mount at various companies.

But Quinn said it’s not clear what happens now, as spring, the beginning of the homebuilding season, kicks in and demand begins to ratchet up.Photo by Justin Sullivan/Getty Images

 

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