As the Council of Forest Industries sets up their first fully restored wood sector conference since the global economic crash, lumber prices are soaring to unprecedented values.
When COFI opens the doors of the Prince George Civic Centre on Thursday and Friday, it will be packed with exhibitors (many hopeful exhibitors couldn't get a spot) and an A-list of stage presenters, including both BC premier Christy Clark and NDP challenger Adrian Dix on the speakers' list.
"Many analysts are forecasting that lumber prices are now on their way to sustained, relatively high levels. With the dismal period of 2006 - '10 behind us, the industry's future looks extremely promising," said COFI president and CEO John Allan. "Our convention provides an opportunity for discussion on the exciting opportunities (and challenges) that lie ahead for the forest industry."
According to both the Random Lengths and Madison's Lumber Reporter online trade magazines, the health of the North American forestry sector has rarely been better. Although lumber is a volatile commodity, prices for common lumber are at near record levels because of Chinese buyers entering the market for the first time, making usual seasonal cycles and supply-demand models no longer predictable.
"At all legs of the supply chain, the main issue continued to be finding enough fibre to keep the folks downstream happy," said Earl Heath, the market analysis editor at Madison's. "The way things have been going lately in the lumber market, it's hard to imagine loads of any grade or species sitting idle in sawmill yards for long."
The key category in the wood market for Prince George is Western Spruce, Pine, Fir (WSPF). For the past two weeks WSPF two-by-fours have been priced at $408 per 1,000 board-feet, which is up 18 per cent from last month and compared directly to this time last year the price has jumped 128 per cent.
According to the Random Lengths composite price listings for framing lumber, the overall rate this week was $447 per 1,000 board-feet, up from last week's $441 and way up from March 2012's $298.
COFI delves into this issue almost immediately, on Thursday. The conference gets underway at 7 a.m. with a welcome breakfast featuring mayor Shari Green, Lheidli T'enneh chief Dominic Frederick, a presentation by Minister of Forests Steve Thomson, then straight into an 8:30 a.m. panel discussion on global macro economics.
Other main topics for the conference include timber supply, fostering a culture of safety, the emergence of the bioenergy component of the forest industry, recruiting workers and skills development, then back to the international theme on Friday with a panel discussion on wood as a building material globally.
