Pulpwood consumers in British Columbia currently enjoy strong inventory positions, some as high as double target levels based on nine months worth of low mill operating levels and strong whole-log chip production. Others are chancing thin inventories to preserve cash. Whether the situation will last, however, is another consideration. Sources across BC (in both the Coastal and Interior regions) said they have no trouble procuring either logs or chips, and anticipate a growing surplus when West Fraser closes its Coastal "Eurocan" kraft pulp and paper mill early next year. However, fresh sawmill curtailments during the traditionally slow first quarter and improving market pulp could couple, eradicating the current wood surplus.
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