Interfor Cuts Lumber Production by 12% Amid Falling Prices

Vancouver, Canada – Lumber prices have dropped over 20% in the last month, prompting Interfor, one of North America’s largest lumber producers, to reduce output by 12%. The company announced on Thursday that it will adjust operations at its mills in Canada and the U.S., which includes extending holiday breaks and maintenance shutdowns.

The decision will decrease production by approximately 145 million board feet by the end of the year. This reduction comes as lumber futures saw a rise after falling in 18 of the previous 22 trading sessions.

Interfor, headquartered in British Columbia, has been shifting much of its operations to the U.S. due to high duties and a dwindling supply of logs in Canada. Currently, about 50% of Interfor’s production capacity is located in the U.S. South, while an additional 12% operates in Washington and Oregon.

These mills in the U.S. face fierce competition as they strive to sell the same species of wood as their Canadian counterparts. The changing market trends highlight the dynamic challenges facing the lumber industry.