Wood industry slumps in Canada

Canadian pulpmills and sawmills reduced production in the 1Q as demand for pulp, paper and lumber continued to slump both domestically and in the Us, a key market for Canada. No province was spared; even pulp-producing companies in the low-cost province of Alberta reduced operating rates this quarter, a clear sign that prices for market softwood and hardwood pulp have reached unprecedented low levels.
The biggest drop in lumber production occurred in British Columbia, where the January figure showed a decline of 28 percent compared to a year ago. The western provinces had the lowest wood chip prices in North America in the 1Q.