In The Current Issue: Oct. 17th, 2008

In The News

According to the Western Wood Products Association, US lumber demand is expected to drop 15 percent to 44.3 billion board feet this year, then fall another 3 percent to 43 billion board feet in 2009.

Canfor announced that due to the continued poor demand and low prices for plywood across North America, it will be closing indefinitely its Tackama plywood plant in Fort Nelson, BC, once the existing log and veneer inventories are depleted.

---

Vancouver Log Market

Douglas Fir

The one bright spot in the market, although price levels remain low.

Standard Old Growth	$110-$125 per cubic metre
Gang Second Growth	$60-$65 per cubic metre

Red Cedar

Prices continue to drop as mills cutback on production.

Cedar Merch	$155-$170 per cubic metre
Cedar Chip & Saw logs	$50-$60 per cubic metre

---

Lumber Market Insight

The Cedar World

Western Red Cedar Export Lumber Market: Most offshore buyers are extremely quiet and many producers have reduced production to a point very close to a standstill. These curtailments by the majors will most likely continue throughout the balance of the year.