Nova Scotia’s sawmill industry was already suffering due to the closure of the Northern Pulp factory when the COVID-19 pandemic arrived. The pulp mill closed on 1-31-20, after the province rejected the mill’s request to continue pumping treated effluent into a lagoon behind a Mi’kmaq community. The pulp mill had purchased wood chips the mainland Nova Scotia sawmills produced as a byproduct of their lumber production. The mills say they are struggling to find alternative markets for their chips since the pulps mills closure. The global COVID-19 pandemic is combining with the challenges of depressed prices for some forestry products and no place to sell chips to create the ‘perfect storm’ for Nova Scotia’s sawmills. As a result, several producers have decided to cease purchasing additional supplies of new logs effective 3-30-20. They intended to run until their current log deck is depleted and they will the weight their future production at that time.
FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.