Grand River Pellets Ltd., located in St. Leonard, New Brunswick, is spending $30 million (CAD) on a capital project that will increase its drying capabilities from 140,000 tons annually to 220,000 tons, once the project is fully operational. The project will essentially double all outdoor equipment.
Wood Markets News
Homes Selling at Slowest Pace Since April 2020
Redfin reported on Friday that homes are selling at their slowest pace since April 2020. In the four-week period ending on January 8th, the typical home sold was on the market for 44 days, which in turn has led to the largest annual inventory increase on record.
University of Michigan Preliminary Consumer Sentiment Index for January Rises
The University of Michigan on Friday released the preliminary results of its Consumer Sentiment Index for January. The Index of Consumer Sentiment rose to a reading of 64.6 in January, up from of 59.7 in December. This is a month-over-month increase of 8.2% but down 3.9% year-over-year.
Canfor Pulp Products Announces Permanent Closure of Pulp Line at Prince George Pulp and Paper Mill
Canfor Pulp Products Inc. announced on Wednesday that a decision has been made to permanently close the pulp line at its Prince George Pulp and Paper mill. The closure will result in a reduction of 280,000 tons of market kraft paper annually.
Consumer Price Index Declines 0.1% in December; All-Items Index Up 6.5% Year-Over-Year
The US Bureau of Labor Statistics reported on Thursday that the Consumer Price Index for All Urban Consumers (CPI-U) declined 0.1% in December, on a seasonally adjusted basis, after increasing 0.1% in November and 0.4% in both October and September.
Aviation Biofuel Project in Southern Oregon Never Got Off the Ground
According to a notice published in the Lake County Oregon Examiner in late December, the Red Rock Biofuels project in Southern Oregon appears to be headed for foreclosure after Red Rock Biofuels failed to make principal and interest payment on some $300 million in debt.
US Asking Rents in December Post Smallest Increase Since July 2021
Redfin reported today that the median US asking rent rose 4.8% year-over-year to $1,979 in December. This is the smallest increase since July 2021. December 2022 also marked the seventh straight month in which annual rent growth slowed.
Fixed-Rate Mortgages Move Lower
Freddie Mac has released its Primary Mortgage Market Survey® for the week ending January 12, 2023. The 30-year fixed-rate mortgage averaged 6.33%, down from last week when it averaged 6.48%. A year ago at this time, the 30-year rate averaged 3.45%.
US Weekly Jobless Claims Decline
The US Department of Labor is reporting that the advance figure for seasonally adjusted initial unemployment claims was 205,000 during the week ending on Saturday, January 7, 2023. This is a decrease of 1,000 from the previous week’s revised level of 206,000 (originally reported as 204,000).
Interfor Announces Plan to Reduce Lumber Production in Q1
Interfor Corporation on Wednesday announced it plans to reduce its lumber production output in Q1 of 2023 by at least 100 million board feet, or 8% of quarterly capacity. A press release said the move was the result of economic conditions and market uncertainty continuing to impact lumber demand.