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Canadian lumber industry poised for growth
OTTAWA ` Better times lie ahead for Canada`s long-suffering lumber industry, whose decade-long restructuring has left it a lean competitor poised for an upturn in the U.S. housing market.
The caveat in that analysis, released by TD Economics on Thursday, is that it will be another year and a half before the housing recovery kicks in.
`Patience is a virtue for this beleaguered sector,` economist Leslie Preston said in the report, which shows that while there have been cyclical gains in other resource sectors, the lumber industry still faces prices 36% lower than previous cycle highs.
But once the foreclosure glut winds down and a U.S. housing recovery kicks in toward the end of 2013, it will drive an upswing in lumber demand and prices as a result of a `far leaner capacity` at the mill level.
Read the full artilce here.
OTTAWA ` Better times lie ahead for Canada`s long-suffering lumber industry, whose decade-long restructuring has left it a lean competitor poised for an upturn in the U.S. housing market.
The caveat in that analysis, released by TD Economics on Thursday, is that it will be another year and a half before the housing recovery kicks in.
`Patience is a virtue for this beleaguered sector,` economist Leslie Preston said in the report, which shows that while there have been cyclical gains in other resource sectors, the lumber industry still faces prices 36% lower than previous cycle highs.
But once the foreclosure glut winds down and a U.S. housing recovery kicks in toward the end of 2013, it will drive an upswing in lumber demand and prices as a result of a `far leaner capacity` at the mill level.
Read the full artilce here.