EACOM Timber Corporation, a major Eastern Canadian wood products company, which owns and operates seven sawmills, a remanufacturing facility, and an engineered I-joist plant, today announced it was investing $8.9M to equip its Elk Lake sawmill with a new, state-of-the art, continuous dry kiln (CDK). The CDK kiln is expected to be fully operational by early fall and will allow for continuous drying of lumber, reducing production bottlenecks and energy consumption.
Wood Markets News
Manufacturing Sales in Canada Supported by Increases in Wood Product Demand and Sales
Statistics Canada (StatsCan) is reporting that following the largest increase observed in seven months in January (+3.4%), manufacturing sales fell -1.6% to $55.4 billion in February on lower sales of transportation equipment. The declines were partially offset by higher sales in the petroleum and coal product, chemical, and wood product industries.
Paper Excellence Announces Permanent Closure of Mackenzie B.C. Pulp Mill
Paper Excellence has announced that due to its inability to access ‘economic fiber’, they intend to permanently close their pulp mill in Mackenzie, B.C. The closure of pulp and paper mills in B.C. has been predicted. The result of the permanent closure of several sawmills over the past several years.
Freddie Mac’s Economic and Housing Research Group Sees Lots of Positives in Current Economic Environment
Freddie Mac’s Economic and Housing Research Group is reporting that they are seeing lots of positives in the current economic environment. The company’s quarterly forecast points to the increasing availability of COVID-19 vaccines and the easing of virus-related restrictions, the passage of the American Rescue plan, and its cash stimulus for households as setting the stage for economic growth and sending consumer confidence to a post pandemic high in March.
Canadian National Homes Sales in March 2021 Set Another All-Time Record
According to the Canadian Real Estate Association (CREA), Canadian national home sales set another all-time record in March 2021 as an increased supply of homes became available. CREA is reporting that national homes sales increased month-over-month basis by 5.2%.
Builders Confidence Edges Higher in April
The National Association of Home Builders (NAHB) / Wells Fargo Housing Market Index (HMI) reports that strong buyer demand pushed builder confidence in the market for newly built single-family homes up 1-point to a reading of 83.
30-Year Mortgage Rate Dips for Second Week in a Row in the Week Ending April 15, 2021
Freddie Mac has released its Primary Mortgage Market Survey (PMMS) for the week ending April 15, 2021. The PMMS reports that the 30-year fixed-rate mortgage averaged 3.04% with an average 0.7 point, down from last week when it averaged 3.13%.
Weekly Jobless Claims Decline in the Week Ending April 10, 2021
The U.S. Department of Labor is reporting that an additional 576,000 Americans made their initial filing for unemployment benefits during the week ending on Saturday April 10, 2021 — a decrease of 193,000 from the previous week’s revised level.
New Zealand Sawmills Plan Expansion to Meet Increasing Product Demand
Increased demand for lumber products in New Zealand has led to a national supply shortage. As such, both Kiwi Lumber sawmill and WET Gisborne Ltd., are experiencing greater demand for their finished products. In response to that demand, both companies are taking proactive steps to increase their production.
British Energy Company Drax Completes Purchase of Pinnacle Renewable Energy
British energy company Drax, which owns the world’s largest biomass power station, located in the United Kingdom and wood pellet mills in the southern United States, has announced that purchase of wood pellet producer Pinnacle Renewable Energy, originally announced in late February 2021, has been officially completed.