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CML is back running again. After nearly 2 weeks down we have purchased some logs and are running the mill. We are cutting a little different with a few new items. We need to squeeze all of the value out of these logs as they were more expensive than normal. CFP is logging wood for the mill in the Stewardson area and will have enough for a barge by the end of May. Sales have improved over the last few weeks volume wise, but prices are still depressed in both cedar and hemlock.
There are a number of factors that influence sales volumes:
Certification: More building projects are going green and want FSC certified projects.
Weather: With an improvement in the weather, consumers are using up the supplies at distribution centres which in turn are putting in orders to the mills.
Price: Cedar has become more affordable.
Mill Curtailments: Mill shutdowns are creating some shortages.
Unfortunately housing starts in both the U.S. and Canada are very low and are forecasted to remain that way until late 2010 so there is not going to be the huge demand that we have seen over the last few years. This will affect prices in everything - when supply is greater than demand prices drop.
As individuals we can’t do much about the global forces that are affecting our business. What we can control is safety, quality and productivity. To have a chance in these markets we have to give our customers the best product possible and control our costs by working safely and productively.
Until next month, please work and play safe.