CHINA - LUMBER SALES APPROACH 20 PER CENT OF B.C. PRODUCTION (16.12.09)
Chinese demand for B.C. lumber shows no sign of slowing, crashing through projections that were considered optimistic only two months ago and prompting one major forest company to factor the China story into a decision to reopen a shuttered sawmill. Sales to China are expected to hit 18 to 19 per cent of B.C.'s total lumber production by the end of the year. That's a big enough piece of the B.C. lumber pie to encourage Canfor Corp. to reopen its sawmill at Chetwynd, which has been closed since February 2008. A plan to restart the mill next May is to go before the Canfor board of directors later this month. "We are seeing more demand out of Asia," said Canfor representative Dave Lefebvre. "And obviously China would be a big component in that." The plan takes into account not only Chinese demand, but a stronger market for higher-end lumber products in American big-box retailers and reduced labour costs.
