Canfor Corporation announced on Tuesday (2-15-22) the permanent reduction of 150 million board feet of production capacity at its Plateau Sawmill to resize the facility and align it with the available, sustainable timber supply in the region following the devastating impacts of the Mountain Pine Beetle infestation and other constraints on the timber harvesting land base.
Wood Markets News
Led by Lumber, Costs of Residential Construction Products Continued to Rise in January
A closer examination of the Bureau of Labor Statistics’ Producer Price Index (PPI) report, released on Tuesday (2-15-22), with analysis provided by the National Association of Home Builders, reveals that the price of products used in residential construction in January, less energy, increased 3.6% (not seasonally adjusted).
Canadian Home Sales Edge Higher Month-Over-Month but Remain Down Year-Over-Year in January
According to statistics released on Wednesday (2-16-22) by the Canadian Real Estate Association (CREA), home sales recorded over Canadian MLS® Systems edged up 1% between December 2021 and January 2022. CREA is reporting that activity has been generally stable now for four months, running in between the record-highs of last spring and the slowdown posted last summer.
Canadian Consumer Price Index Up 0.9% in January; Inflation Rises 5.1% Year-Over-Year
Statistics Canada (StatsCan) reported today (2-16-22) that Canadian inflation in January 2022 surpassed 5% for the first time since September 1991, rising 5.1% on a year-over-year basis and up from a 4.8% gain in December 2021. The Canadian Consumer Price Index (CPI) increased 1.0% on an annual average basis in January 2022. On a monthly basis, the CPI rose 0.9% in January.
Mortgage Applications Decline for Second Consecutive Week in the Week Ending February 11, 2022
According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending February 11, 2022, the Market Composite Index—a measure of mortgage loan application volume—decreased -5.4% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index declined -3.0% compared with the previous week.
Home Builder Sentiment Slips Again in February
The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) reported on Wednesday (2-16-22) that builder sentiment in the market for newly built single-family homes edged 1-point lower in February to a reading of 82. This marks the second consecutive month the HMI has slipped 1-point lower.
Fire at EACOM Lumber Operation in Timmins, Ontario Interrupts Production
Timmins Ontario firefighters were called out at 4:30 AM on Monday (2-14-22), in -31 degrees temperature, to battle a blaze at the EACOM lumber operations planner mill. Arriving on the scene, firefighters encountered smoke and flames coming from the roof tops of two buildings.
Stora Enso to Invest 9 Million Euros in Automated Cross-Laminated Timber Coating Line at Ybbs, Austria Sawmill
Stora Enso announced on Friday (2-11-22) that it will be investing 9 million euros in an automated cross-laminated timber (CLT) coating line at their Ybbs sawmill in Austria. In the news release, the company said the investment will further strengthen its position as a leading global provider of engineered wood products for low carbon, sustainable buildings.
New Owner and New Life for Sawmill Closed in 2015 in Jefferson County, Washington
A sawmill that closed back in 2015 has found a new owner and new life. According to Spencer Forest Products LLC’s construction engineer Rollie Dawson, the former Allen Logging Company sawmill in Jefferson County, Washington has been purchased for $1.25 million by Spencer.
Canadian Housing Starts Decline in January 2022
According to data released today (2-15-22) by Canada Mortgage and Housing Corporation (CMHC), the trend in housing starts declined in January 2022 to 254,133 units, down from 261,352 units in December 2021. This trend measure is a six-month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts.