Question

On June 18, Ryan Dezember and Kirk Maltais reported in the Wall Street Journal that, "The announcement by West Fraser Timber Co. to permanently curtail about 314 million board feet of production annually added to a long list of Canadian mill owners who are cutting back amid limited availability of timber in British Columbia and low prices for finished forest products due to a slowdown in U.S. home construction." Will this affect supply or demand in the market for Canadian lumber?

Answer 1

West Fraser is a diversified wood product company producing lumber, plywood, newsprint ,wood chips with facilities in western Canada and the southern United states.West Fraser's announcement that it will permanently curtail lumber production will affect the employees in the first and second quarter of 2019.British Columbia faces timber supply shortage . There is insufficient timber supply to support the current lumber production capacity of the lumber mills in these locations.