National Hardwood Magazine - October 2018

CANADIAN TRENDS News

CANADIAN TRENDS News from suppliers about prices, trends,sales and inventories ONTARIO As summer ended contacts noted that exports to China had slowed. Demand for Hardwoods was noted as doing well from the U.S. for home construction and remodeling materials. Activity for industrial products was also reported as doing well for ties, pallet lumber and cants. Contacts in the Hardwood sectors were gearing up for fall and winter, planning their purchases to provide lumber and Hardwood products to meet demand. They were optimistic the fall and winter periods would be profitable ones, despite the turmoil of the NAFTA talks, and the imposed tariffs by the U.S. on Chinese goods, which are adding strain on markets for everyone. Production and sales of Ash held up well over the summer for this species, although China’s lumber tariffs on U.S. imports were cause for concern. There is ample supply of Aspen to meet demand, with prices remaining stable. Basswood demand has increased due to increased housing starts and renovation projects as consumers still prefer painted finishes. With the hot summer weather, mills were limiting their Basswood production and receipts to manageable quantities. It was noted that green lumber supplies were below buyers’ needs, which firmed pricing for many grades and thicknesses. Hard Maple demand is steady due to strong U.S. and Canadian housing markets as well as to strong renovation markets. It was noted that sawmills had processed more Hard Maple over the summer months to meet demand, with prices being steady. Soft Maple also saw strong demand over the summer, with some areas contacted noting a slight downturn in demand for this species. Demand for White Oak was noted as strong, with limited volumes available to process into lumber. Sales on domestic and international markets are strong. Statistics Canada reported there were fewer young people pursuing apprenticeship training in the trades. There were 417,300 individuals registered for apprenticeship programs in Canada in 2016 (latest stats available), down from 455,900 in 2015. Of this total, new registrations accounted for approximately 72,000 registrants in 2016, while 337,450 were already registered in an apprenticeship program prior to 2016. Individuals newly registered to a program had the biggest drop over the previous two years, falling from 93,400 in 2014 to 72,000 in 2016. Earlier this year, BuildForce Please turn to page 89 QUEBEC Contacts commented that business was steady over the summer, and were hopeful that the fall period and winter months would continue in this vein. Most species are performing well, with shipments of Hard Maple and White Oak being in steady demand. Exports to China have been weaker, due to that country’s weaker economy and tight fiscal policy, and have slowed activity for Hardwoods. Demand for Cherry, Red Oak, Walnut and Ash have declined from this overseas market. Contacts noted that demand for Ash is strong both on the domestic and export markets. Sales and shipments of Birch are strong for the common grades and for industrial products made from this species. The green stocks of Birch, however, were not selling as well, with prices being reported as mixed. Color sorts are a factor influencing activity for this species. The regionally important species – Hard Maple – is doing very well driven by strong U.S. housing construction spending. Flooring manufacturers were also kept busy to meet demand. For kiln-dried Hard Maple, color is a selling factor for this species. Prices were seen as steady. Demand for White Oak to European countries, depending on areas contacted, were reported as good to fair. There has been continued demand from domestic markets for this species. Demand for pallet lumber is strong. With the U.S. economy reported as steady, exports to that country are continuing at a steady pace. Canada’s mortgage lenders saw business plunge by billion in the first quarter to .7 billion, the lowest level in nearly four years, Statistics Canada reports. The slide in mortgage borrowing mirrored the 17 percent decrease in the value of housing sales in the first quarter of this year. The decline parallels the introduction of tougher mortgage qualification rules, the stress-test, and higher lending rates. At time of this writing, an election was slated for October 1st in the province. It will be interesting to see who gets re-elected. The province’s Liberal Premier has delivered on the promise he made in 2014 to put the budget on a sustainable track. Quebec’s public finances are now the healthiest of any province. The provincial government has surpluses and is paying down its debt, which has fallen to 49 percent of GDP. In mid-August, the government earned kudos from the auditor-general for tabling “plausible” fiscal projections for the next three years. Please turn to page 89 20 OCTOBER 2018 n NATIONAL HARDWOOD MAGAZINE

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