Soaring Lumber Prices Boosting Financial Performance—Driven by wildfire-induced supply constraints in B.C. and the anticipation of higher demand for lumber in the U.S. in the wake of hurricanes Irma and Harvey, lumber prices are at their highest levels in over a decade. This has lifted revenues for lumber producers, offsetting the cost of U.S. lumber duties for some companies.
Lumber Duties Finalized—In its final determination, the U.S. Department of Commerce announced an average duty of 21 per cent on U.S. imports of Canadian softwood lumber. While this is six percentage points lower than the preliminary findings earlier this year, it provides little solace for the industry, which could now face an extended period of lengthy and costly legal battles if it hopes to get the duties lifted.
Increasingly Severe Wildfires Pose Risk to Industry—This summer, B.C. had its largest forest fire on record, affecting more than 467,000 hectares of forest area in the province. The rising severity of fires in Canada represents a critical risk to the industry’s future supply of timber.