B.C. lumber trade delegation tours Matsudo elderly care home in Tokyo

Forest trade mission finds Asian headwinds

With Japan slipping back into recession and sales down in China, B.C. forest companies push for more wood construction

Forests Minister Steve Thomson is leading the B.C. industry’s annual trade mission to promote lumber sales in Asia this week, with a focus on maintaining sales in a soft market.

Accompanied by more than 30 executives from B.C. forest companies, Thomson started the trip Monday with a visit to Japan’s largest-ever wood building, an elderly care facility under construction in Tokyo. The visit comes as Japan’s economy is slipping back into recession.

Japan has been a major lumber customer for B.C. since the 1970s, and is the third largest buyer behind the United States and China. So far this year, sales volume to Japan is down, but value is up slightly to $556 million, in a market known for demanding high-grade wood.

The next stops are Dalian and Beijing, China, which is B.C.’s biggest recent success story with sales that topped $1 billion last year for mostly lower-grade lumber. So far in 2015, sales to China are off 11 per cent from the same time last year as the world’s most populous country struggles to maintain economic growth.

In an interview as he prepared to leave, Thomson said B.C. lumber producers are faced with slow sales in Asia and a decline in timber supply for standard lumber in the wake of the pine beetle epidemic. After years of promotion, B.C. has reached 43 per cent of all China’s imported lumber, over competitors including Russia, Australia and New Zealand.

“One of the focuses of the mission is to move the product up the value chain, particularly in the China market, because as you look to supply limitations, you want to make sure you get maximum value out of it,” Thomson said. “So it’s important to move up into the mid-rise multi-family construction, infill partition walls, hybrid construction, that aspect of it.”

Along with the industry and the federal government, B.C. has promoted wood construction as a green and earthquake-resistant alternative to concrete, the building standard in China.

Susan Yurkovich, named president of the Council of Forest Industries in June, is making her first official visit to Asia. COFI represents B.C.’s biggest lumber producers, including Interfor, West Fraser, Weyerhaeuser, Conifex, Domtar, Gorman, Dunkley, Babine Forest Products and Canfor.

Yurkovich said member companies have meetings lined up with Asian buyers, and she wants to spread the word that B.C. is a reliable supplier of lumber from sustainably managed sources.

B.C.’s top five lumber customers by volume are the U.S., China, Japan, Taiwan, Philippines and South Korea. With the Canada-U.S. softwood lumber agreement having expired, participants say diversifying B.C.’s lumber market is more important than ever.

 

Just Posted

Castlegar Rebels take flight in win over Grand Forks

Team speed was too much for the visiting Grand Forks Border Bruins to handle.

Property crime on the rise in Grand Forks: RCMP

Grand Forks RCMP sat down with the Gazette to talk property crime and community solutions.

RDKB elects Russell as board chair

Grace McGregor will be vice-chair of the board.

MLA Larson wants to abolish daylight saving time

Okanagan-Boundary MLA put forward private member bill

BETHS working to develop shelter/hub

the group is hioping the shelter will be ready for next winter.

VIDEO: Best photos of the Supermoon 2017

At its closest, the Frost Moon was about 363,300 km away from the Earth

WestJet Christmas video turns children’s wishes into reality

This year’s annual video took a new spin on the 12 days of Christmas

Firefighters protect seaside California towns as blaze rages

A flare-up on the western edge of Southern California’s largest and most destructive wildfire sent residents fleeing Sunday

Putin declares victory on visit to air base in Syria

Declaring a victory in Syria, Putin on Monday visited a Russian military air base in the country and announced a partial pullout of Russian forces from the Mideast nation.

Pipe bomb explodes in NYC subway

Pipe bomb strapped to man explodes in NYC subway, injuring 4

Toronto FC to hold victory parade following MLS Cup championship

Toronto FC to hold downtown victory parade following MLS Cup championship

Canada’s only commercial spaceport hopes to launch 12 rockets per year

Nova Scotia’s rocket launch site hopes to eventually host 12 launches per year

‘Big Little Lies’ lead Golden Globes

The nominees were announced from Beverly Hills after still-burning fires ravaged Southern California for the past week.

B.C. actress’s role in Wonder brings perspective to the topic of bullying

Crystal Lowe plays bully’s mother in the Hollywood movie

Most Read