PRINGE GEORGE, B.C. — Lumber haulers in the B.C. interior will likely have waves of freight to haul followed by long periods inactivity, thanks to the U.S. softwood duties.
Northern Forest Products Association president, Greg Jadrzyk, says Canada is in danger of becoming a marginal producer that will have to shut down when lumber prices are down, and run full out when they rise to sufficient levels to turn a profit.
“It’s completely dependent on where the lumber market is at any point in time. A 27 per cent duty is a horrendous amount to pay and if the market goes below about US$250 you’ll see mill shutting down,” Jadrzyk tells local media. “We could have a cycle of mills running when prices are high and shutting down when prices are low.”
Lumber prices are traditionally at their highest during the summer month when houses are being build south of the border. Prices then tend to drop in the fall. Jadrzyk says since most mills can’t operate with a 27 per cent dent in their profits, the only solution will be to operate seasonally.
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