Alberta forest shipments and value continues decline in Q2-2009
October 08, 2009

Edmonton, October 8, 2009 – Total shipments of lumber, panelboard, pulp and paper manufactured by AFPA member companies continued to trend downward in the second quarter of 2009. Comparing shipment volumes between April and June of 2009 to the same period in 2008, lumber shipments were down over 11 percent; panelboard dropped over 43 percent; and pulp and paper declined more than 14 percent. The value of those shipments were also down, with lumber values down nearly 23 percent; panelboard down 47 percent and the pulp and paper sector dropping over 35 percent.

“Alberta producers continue to face challenges as a result of the global economic downturn,” said Brady Whittaker, AFPA President and CEO. “Key indicators such as housing starts are showing signs of improvement, however, and that’s good news for our members. Alberta remains a low-cost producer and enjoys the healthiest, most efficient forest industry in the nation.

LUMBER – AFPA-member companies shipped 666.9 million board feet* (mmfbm) between April and June 2009 with a value of $C133.3 million. Part of this production came from the secondary manufacturing sector. Shipments were down 11.55 percent from Q2-2008 but did see an increase of 12.48 percent from Q1-2009. The value of lumber products also declined, down 22.85 percent from the same quarter a year ago. The lumber and secondary manufacturing sector did see some good news, however, as the value of shipments in the second quarter were up $C24.9 million over Q1-2009. 

The average monthly prices for Western Spruce-Pine-Fir 2x4 Standard or Better, per thousand board feet were $C203.70 in April 2009, $C182.43 in May, and $C212.33 in June. (*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 258.1 million square feet of 7/16^th inch equivalent product in Q2-2009 valued at $C55.3 million. Production was down 43.47 percent and value was down by 47.29 percent compared to Q2-2008. When looking at Q2-2009 versus Q1-2009, production was down 98.5 million square feet (27.6%) and value was down $27.3 million (33%).

Average monthly prices for oriented strandboard (OSB) during the quarter were $C181.06 per thousand square feet in April, $C162.26 in May and $C173.18 in June. Average monthly plywood prices were $C255.00 per thousand square feet in April, $C256.75 in May, climbing to $C278.75 in June.

PULP & PAPER – The AFPA’s pulp and paper sector total production in the second quarter of 2009 was 398.5 thousand air dried metric tones (ADMT), down 5.5 percent from Q1-2009 and down 14.3 per cent from Q2-2008. The quarterly value of pulp and paper produced by AFPA mills was $246.4 million versus $380.6 million in the second quarter of 2008, a decline of over 35 percent. When comparing Q2-2009 to Q1-2009 the value of pulp and paper production fell by $45.7 million (15.6%).

During Q2-2009, average prices for pulp and paper types, per metric tonne were $C702.84 for softwood kraft pulp (down 3.5% or $C25.49 from Q1-2009) ; $C574.41for hardwood kraft pulp (down 10.7% or$C69.17 from Q1-2009); $C540.55 for Bleached chemi-thermomechanical pulp (down 9.2% or $C54.48) and $C552.28 for newsprint (down $C224.69 from Q1-2009).