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.
Wood Markets News
One Sky Forest Products and Paper Excellence Sign Co-Location Agreement
In September, One Sky Forest Products announced its intention to build and operate a new oriented strandboard (OSB) operation at an existing Prince Albert, Saskatchewan mill site. One Sky Forest Products took a step forward on Tuesday (11-30-21) in bringing that operation to fruition with the announcement that it has signed an agreement with Paper Excellence, the company behind the restart of the local pulp mill.
Chinese City of Manzhouli Temporarily Halts Rail Imports After a Sudden Spike in COVID-19 Cases
Starting on Wednesday (12-1-21), authorities said its railway port will “suspend the import of non-containerized goods including timber, coal, mineral powder, chemical fertilizers, and other products that require manual loading and unloading.” The aim is to “strengthen prevention and control” of the outbreak at ports and “effectively block the spread of overseas epidemics through imported goods.”
Total Value of Canadian Building Permits Increased 1.3% in October
Statistics Canada (StatsCan) reported today (12-1-21) that the total value of building permits increased 1.3% to $10.3 billion (CAD) in October. Construction intentions in the non-residential sector were up 4.2%, while the residential sector inched -0.1% lower.
Construction Spending Up Month-Over-Month and Year-Over-Year in October
On Wednesday (12-1-21), The U.S. Census Bureau reported that total construction spending during October 2021 was estimated at a seasonally adjusted annual rate (SAAR) of $1,598.0 billion, 0.2% above the revised September estimate of $1,594.8 billion. The October figure is 8.6% above the October 2020 estimate of $1,471.1 billion.
ADP Reports Private Sector Employment Increased by 534,000 Jobs in November
According to the November ADP® National Employment Report™, nonfarm private sector employment increased by 534,000 jobs from October to November. The report, which is derived from ADP’s actual payroll data, measures the change in total nonfarm private employment each month on a seasonally adjusted basis.
Mortgage Applications Decline Sharply in Week Ending November 26, 2021
According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey (WMAS), for the week ending November 26, 2021, which includes adjustments for the Thanksgiving holiday, the Market Composite Index (a measure of mortgage loan application volume) decreased -7.2% on a seasonally adjusted basis from one week earlier.
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.
Construction Loans in Q3 2021 Set Post-Great Recession High
According to analysis provided by the National Association of Home Builders (NAHB), the volume of 1–4-unit residential construction loans made by FDIC-insured institutions increased 6% during Q3 of 2021. The volume of loans rose by $4.9 billion during the quarter.
West Fraser Temporarily Eliminates Weekend Shift at Williams Lake Plywood Mill
According to West Fraser corporate spokesperson Joyce Wagenaar, “As a result of the significant flooding in southern B.C., the province is now facing serious transportation and logistics issues impacting highways, rail, and our ports.” West Fraser’s Williams Lake mills will be operating at its usual Monday through Friday schedules; however, the company is temporarily curtailing its weekend shift at its plywood mill.