Edmonton, June 17, 2009 – Total shipments of lumber, panelboard, pulp and paper manufactured by AFPA member companies continued to slump in the first quarter of 2009 as demand remained low due to the North American and global economic downturn. Comparing shipment volumes for the first three months of 2009 to the same period in 2008, lumber shipments were down almost 13 percent; panelboard fell 10.5 percent; and pulp and paper declined more than 11 percent. The value of those shipments were also down, with lumber values down almost 18 percent; panelboard declining by more than four percent and the pulp and paper sector plummeting almost 22 percent.

“The rough ride continues for Alberta producers,” stated Brady Whittaker, AFPA President and CEO. “Continuing market weakness is affecting all our members, their employees and the local communities. We are seeing continued curtailments and downtime in provincial mills in response.”

LUMBER – AFPA-member companies shipped 583.7 million board feet* (mmfbm) between January and March 2009 with a value of $C108.4 million. Part of this production came from the secondary manufacturing sector. Shipments were down 12.96 percent from Q1-2008 and 16.57 percent from Q4-2008. The value of lumber products also saw significant declines, down 17.63 percent from the same quarter a year ago. The good news is that, with prices firming somewhat, the value of shipments in the first quarter was almost the same as in Q4-2008. 

The average monthly prices for Western Spruce-Pine-Fir 2x4 Standard or Better, per thousand board feet were $C178.82 in January 2009, $C189.89 in February, and $C188.41 in March. (*A board foot (fbm) is the standard measure for lumber and is of 1"x 12"x 12" dimension or 144 cubic inches. A finished eight foot 2x4 that a consumer would purchase in a building supply store is equivalent to 5.33 board feet.)

PANELBOARD – AFPA-member panelboard operators produced 356.6 million square feet of 7/16^th inch equivalent product in Q1-2009 valued at $C82.6 million. Production was down 10.45 percent and value was down by 4.18 percent compared to Q1-2008. When looking at Q1-2009 versus Q4-2008, production was down 38.8 million square feet (9.8%) and value was down $18.1 million (18%).

Average monthly prices for oriented strandboard (OSB) during the quarter were $C183.72 per thousand square feet in January, $C202.97 in February and $C190.62 in March. Average monthly plywood prices were $C283.50 per thousand square feet in January, $C277.00 in February, falling to $C253.25 in March. The Q1-2009 price for medium-density fibreboard (MDF) was $C470.00 per thousand square feet.

PULP & PAPER – The AFPA’s pulp and paper sector total production in the first quarter of 2009 was 421.5 thousand air dried metric tones (ADMT), down five per cent from Q4-2008 and down 11.3 per cent from Q1-2008. The quarterly value of pulp and paper produced by AFPA mills was $292.1 million versus $373.2 million in the first quarter of 2008, a decline of nearly 22 percent. When comparing Q1-2009 to Q4-2008 the value of pulp and paper production fell by $97.2 million (25%).

During Q1-2009, average prices for pulp and paper types, per metric tonne were $C728.23 for softwood kraft pulp (down 24% or $C227.8 from Q4-2008) ; $C643.58 for hardwood kraft pulp (down 26% or$C226.42 from Q4-2008); $C595.03 for Bleached chemi-thermomechanical pulp (down 21% or $C158.65) and $C776.97 for newsprint (down $C3.88 from Q4-2008).

The Alberta Forest Products Association is a private, non-profit industry organization, representing lumber, panelboard, pulp and paper, and secondary manufacturing wood products companies operating in Alberta. The forest products industry is Alberta’s third largest manufacturing industry and the second largest manufacturing export industry. AFPA member companies are active participants in sustainability advancements that benefit the industry, our environment and society. The AFPA will hold its 67^th Annual General Meeting and Conference on September 23-25, 2009. For more information about the conference or Alberta’s forest industry, click this link.