Bumps ahead but growth predicted for B forest companies.
But Rick Jeffrey, CEO of Coast Forest Products Association, is confident the longer term view of the industry remains promising. Jeffrey outlined prospects for the province's rebounding forest sector at a recent conference in Kamloops. Following a gradual tailing off in the early part of 2011, lumber prices climbed in the latter part of the oakley sunglasses blue year to about $280 a thousand board feet. While most Interior mills have restarted, lumber prices remain several hundred dollars less than a pre recession high of nearly $500 a thousand board feet. In the Kamloops region, two key mills Canfor Vavenby and Tolko Industries in Kamloops remain operational. Canfor restarted its Vavenby mill in September following a major investment. Aspen Planers also restarted a specialty mill at Savona. mills are well positioned in the medium term. That outlook is buoyed by insatiable growth in Asia and confidence that a depressed American market that will one day rebound. The current health of the industry is largely due to China. mills, employing 9,000 direct employees. industry and government began to promote use of wood in construction. But Jeffrey warned housing prices have climbed too high in China. The Chinese government is attempting to sunglasses oakley outlet bring prices down, and increase affordability, by tightening credit. "In our industry what it means is we're having trouble getting sales to our customers because they're having trouble getting lines of credit." The amount of wood frame construction in China remains tiny. Sixty per cent of wood shipped there is used in concrete forming and scaffolding. About 37 per cent is used in interior finishing. But balancing the credit tightening is the Chinese government's ramp up in construction of social housing. wood is in hybrid concrete wood housing and green building construction. The outlook elsewhere looks less certain. In the United oakley optical States, there are 2.8 million unoccupied houses, equivalent oakley shades men to three or four years supply of new homes. "That's going to continue to dampen housing starts. In the Interior.... lumber markets will be soft." In the absence of home construction, the industry is focusing on non residential construction, where wood may be used in concert with steel. There are also opportunities in using the building blocks of wood, lignin for example, as components in high tech materials. Jeffrey said in one instance scientists are experimenting with using lignin as a replacement for polymers in carbon fibre. producers are also trying to expand a nonexistent market in India. But Jeffrey said wood frame construction is unlikely to occur there because there is no history or knowledge of the North American style of building. There are also threats of moisture and destructive insects on softwood buildings.
The industry hopes, however, to get more wood inside concrete and steel buildings, as well as for use in India's furniture industry. The country is reliant on tropical hardwoods that are forecasted to dwindle over time. 3 market, Jeffrey said local politics have delayed tsunami related reconstruction.
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