6/14/2007
Lumber Affected by
Closure of Mills
The strong Canadian Dollar has squeezed profitability
of Canadian lumber mills to the lowest level in years. The Canadian
press reported, "A strong Canadian dollar and low prices
are pushing newsprint and lumber producers to their lowest profitability
in years, a Desjardins analyst suggested Tuesday as Canada's
paper and forestry companies prepare to report their second-quarter
results.Analyst Pierre Lacroix suggested that even pulp producers
have seen their price gains eroded by the strong loonie and
other cost pressures."
6/13/2007
Lumber industry sways up and down: StatsCan study
Canada's lumber industry has remained profitable despite being
impacted by various trade and economic pressures in recent years.
According to a new Stats Canada study, the industry has lost
thousands of jobs since the turn of the millennium, but by undergoing
extensive restructuring, it has still be able to achieve substantial
gains in productivity. These gains, combined with a brief but
large surge in lumber prices and operating revenues in 2004,
have helped the industry maintain positive profit margins comparable,
on average, to those reported in the manufacturing sector from
1999 to 2005.
Among the challenges faced by the industry during this period
were the Canada/United States Softwood Lumber Agreement (1996
to 2001); the American anti-dumping and countervailing duties
imposed on the industry from 2002 to 2006; rising energy and
raw material prices; declining lumber prices and a higher exchange
rate for the Canadian dollar.
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