Declining demand for lumber and other wood-based products will see Québec’s export levels decline in 2008, Export Development Canada (EDC) said.
The forestry industry represents 16.5% of the Canadian province’s exports but is expected to decline by 9.4% in 2007. This is compared to an overall growth in exports of 2.7% in 2007, which will recede by 1.4% in 2008.
EDC cites the drop-off in US residential construction as the main reason for the decline in exports from the forestry industry, further depressing prices.
“Forestry and consumer products will be the main drags on overall provincial export sales in 2007, with most other sectors registering modest growth,” said Stephen Poloz, EDC vice-president of corporate affairs.
EDC added that planned plant closures and curtailments to rebalance supply with demand would help ease the situation next year.
