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Chinese trade mission attracts more orders for B.C. lumber |
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Written by GORDON HOEKSTRA
Citizen staff
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Monday, 17 November 2008 |
Forests Minister Pat Bell says new orders for the province's wood is more proof there are growing opportunities in China, critically important to help diversify the forest industry's markets.
Companies involved in a trade mission -- including Northern Interior B.C. lumber producers Canfor, West Fraser and Tolko -- were able to secure 83 million board feet in new orders, which included higher-grade lumber for use in trusses being used on Chinese apartments.
Bell, speaking to reporters from China, said there is a lot of work ahead, and acknowledged B.C. has by no means captured the lumber market in China, but stressed he sees an opportunity to find a home for more of the province's lumber.
"I think (the Chinese market) can bring stability to our industry and for me that's what this is all about -- making sure we never have to deal with the types of stresses that we are seeing in our forest industry today by having the diversified market that can be achieved as a result of being in China," Bell said Monday.
The MLA for Prince George North said he is satisfied with the trip, although he acknowledged that work had been done by companies on the lumber sales before the trip.
He said it was a good start on a new market with big potential.
"I think most importantly it's created momentum," said Bell. "The CEOs have been here, the senior sales officials have been here. They know what the market potential is, and I'm pretty convinced when they all head back to British Columbia, they are going to be thinking more about China and more about how they access this market."
While the Chinese market has been growing for B.C. lumber producers, it is likely to remain below one billion board feet this year, about six per cent of the province's average output in the past decade. (Up to September, B.C. had exported 552 million board feet of softwood lumber to China). Much of that lumber so far has been low-grade for use in concrete forming and in secondary manufacturing.
The United States remains by far B.C.'s largest market, accounting for as much of 80 per cent of the market for Northern Interior lumber producers. Another major market is Japan, taking 10 per cent of B.C. production.
Bell, however, believes with the right kind of ground work -- taking advantage of the roof truss market and introducing lumber for use in walls in low-rise apartments -- China's share could grow to account for 20 to 25 per cent of B.C.'s lumber market within three to four years.
The province's Forestry Innovation Investment Ltd. firm is already examining ways to help introduce lumber in-fill walls and partition walls in China. The Crown firm did the same in the roof truss market where it financed a demonstration project, purchasing the lumber for three buildings and helping in the design and implementation.
Forest sector analysts have been slightly skeptical of the opportunities for the use of British Columbia lumber in housing in China, mostly because the country does not have a culture of building housing with wood. One analyst said he still believes most of the short-term opportunity is in increasing shipments of low-grade lumber to the China.
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Last Updated ( Monday, 17 November 2008 )
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