The National Association of Home Builders (NAHB) has provided a deeper look into the relationship between U.S. domestic sawmills’ inability to increase output to meet growing demand since mid-2020 and the resulting lack of new home availability. The NAHB cites the lack of increased domestic sawmill activity as one of the primary factors that has contributed to record high lumber and panel prices and continuing price volatility in both the lumber and housing markets.
News in lumber
One Equity Partners to Acquire Majority Interest in Rosboro
One Equity Partners, a New York City-based middle market private equity firm, announced today (1-6-22) that it has acquired a majority interest in Rosboro from Wynnchurch Capital. Wynnchurch Capital will remain a significant minority shareholder. Terms of the private purchase were not disclosed. Rosboro is based in Springfield, Oregon and operates captive sawmills and glued laminated timber (glulam) production facilities.
Canfor’s Houston, B.C. Sawmill to Resume Full Production Operations
Canfor Corporation announced on Wednesday (12-29-21) that their Houston, B.C. mill, which has been dealing with cutbacks as a result of challenging market conditions since late summer, will resume full operations effective Monday, January 23, 2022. According to Rosemary Silva, Canfor’s External Relations Senior Advisor, “Currently, we have limited staff performing special projects and preparatory maintenance work…”
Increased Russian Lumber Export Duties Are Now in Effect
Russia enacts higher export duties on minimally processed lumber.
China Updates Phytosanitary Requirements for Pine Log and Lumber Imports
China Customs released new phytosanitary rules on importing pine logs and lumber from 7 countries due to pine nematode concerns. The new rules include an updated list of designated Chinese ports pine logs and lumber can be imported starting February 1st, 2022.
Canada Officially Challenges US Duties on Canadian Softwood Lumber Under USMCA Trade Agreement
The Canadian government, in a statement released on Tuesday (12-21-21) by Canadian Trade Minister Mary Ng, said that Canada has filed an official notice to challenge U.S. duties on Canadian softwood lumber under the US-Mexico-Canada (USMCA) trade agreement. The United States nearly doubled duties on softwood lumber exported from Canada in November.
Teal Jones to Build New Sawmill Facility in Bossier Parish, Louisiana
Teal Jones, a 70-year-old, family-owned company based in British Columbia, Canada, today announced that the company is looking forward to bringing a $110.5 million Southern Yellow Pine lumber mill to Bossier Parish, Louisiana. To become a reality, the company is pursuing a payment in lieu of taxes agreement with local taxing entities. Teal Jones expects to source southern yellow pine timber from their landowner partners in this project, as well as other regional suppliers.
Canfor Corporation Announces Purchase of Millar Western Forest Products’ Alberta Assets
Canfor Corporation on Thursday (12-16-21) announced it has entered into an agreement with Millar Western Forest Products Ltd. to acquire the Millar’s solid wood operations located in Alberta, Canada, and associated tenure for $420 million (CAD), which includes $56 million in working capital. Millar Western’s solid wood operations will add 630 million board feet of production capacity.
West Fraser Completes Acquisition of Angelina Forest Products Lumber Mill
West Fraser Timber Co. Ltd. announced (12-1-21) that it will close on the acquisition of the Angelina Forest Products lumber mill located in Lufkin, Texas today. The company said that it has completed the U.S. regulatory review and other conditions have been satisfied.
West Fraser Announces Reduction in Operations at Multiple Locations in Western Canada
West Fraser has announced that while the magnitude and duration of the impact from current weather events remains uncertain, it has reduced operating schedules at multiple western Canadian locations and will continue to make such adjustments as necessary in order to manage inventory levels, raw material supplies and our integrated fiber supply chain.