Imminent Surge in B.C. Wood Products Exports Looks Doubtful

SEATTLE (Scrap Monster):  The failure in containing the spread of coronavirus pandemic in the U.S. is likely to hit the Canadian forestry sector exports. It must be noted that the U.S. accounts for majority of wood products exports out of Canada, especially from the B.C. region.

In accordance with BC Stats, the exports of forestry products reported dramatic decline in the month of May this year. The B.C. dimensional lumber exports during the month were down by 30%, whereas the log exports from the region plummeted by 72%. Meantime, the newsprint and paper exports to the U.S. witnessed 80% and 26% decline respectively, over the previous year.

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The demand had started signs of pickup by end-Q2 this year. However, the rising number of Covid-19 positive cases has resulted in many states announcing shutdowns, noted the Council of Forest Industries (COFI).

 The Goldman Sachs, in its report published last week, had said that the U.S. economic recovery may take longer than expected, due to failure by the U.S. administration in containing the spread of the virus. This may lead to prolonged closure of border between the two countries, thereby impacting trade.