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10   MARKET BEATS                                                                 MAR/APR 2026 FDM ASIA | www.fdmasia.com





          Path Ahead For Wood                                   On the BC coast, 10 mills have permanently closed since

          Industry Remains Tough                             2018, resulting in 5,800 job losses, said Peter Lister, executive
                                                             director for the Truck Loggers Association.
                                                                Pulp mill closures are particularly devastating to local
          Forest sector in BC to see tough year in 2026      economies, as they provide high-paying jobs and provide
          A federal task force announced earlier this month will attempt   millions in industrial taxes.

          to save Canada’s stricken forest industry from further decline   The Municipality of North Cowichan lost 370 direct high-
          through product and market diversification, according to   paying jobs as a result of the Crofton mill’s closure, and this
          bowenislandundercurrent.com.                       year the district expects to lose $800,000 in industrial taxes,
            While the support will no doubt be welcomed by the   said North Cowichan Mayor Rob Douglas.
          industry, in British Columbia (BC), the more immediate need   The industry is in crisis, a number of speakers said at the
          is access to timber.                               Truck Loggers Association convention.
            Canada’s forestry sector has been pummelled by a one-  Policies introduced by the NDP government—including
          two punch of low lumber prices, and American tariffs and   a moratorium on logging old growth and new eco-system
          duties on softwood lumber.                         based land management—have contributed to driving up

            The situation is particularly dire in BC, where an integrated   the  cost  of  harvesting  and  lengthening  the  time  it  takes  to
          industry of lumber, remanufacturing, pulp and pellet mills has   get cutting permits.
          been collapsing like a row of dominos.                BC’s forest industry is highly integrated, with pulp mills
            In 2025 alone, BC lost three major operations: the Crofton   dependent on sawmill waste.
          pulp mill on Vancouver Island, the West Fraser sawmill in 100   But so many sawmills have closed that the few pulp mills
          Mile House and a Drax pellet mill in Williams Lake.  remaining in BC have had to resort more and more to pulp
            Since  2022,  15,000  forest  sector  jobs have  been  lost,   logs, which is more costly, and even imports of wood chips.

          according to the Council of Forest Industries (COFI), and since
          2023 there have been 21 permanent or indefinite mill closures.  US sees a fall in both lumber imports and employment
                                                             According to eyeonhousing.org, US sawmill production was
         Tama66                                              unchanged in the third quarter according to the Federal
                                                             Reserve G.17 Industrial Production report.
                                                                Utilisation rates for sawmills and wood preservation industries
                                                             remained near 70 percent despite a weakened demand
                                                             environment from lower levels of residential construction in
                                                             the third quarter of 2025.

                                                                The most notable lumber trend from the third quarter was
                                                             the sharp drop for US imports of softwood lumber, as higher
                                                             duties went into effect.
                                                                Over the full year of 2025, the US imported an estimated
                                                             12.7 billion board feet of softwood lumber, marking the lowest
                                                             annual import level since 2014.
                                                                The sawmill utilisation rate, a measure of actual production
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