S-P-F looks to a future of high demand

II'ANDCIJFITED by the environIlmental restraints on the harvesting of hem-fir, Douglas fir and ponderosa pine, the western softwood lumber industry is finding increased competition from out of the counry in markets traditionally served by dimension lumber from the West. Markets that include the western softwood-producing regions themselves.

Story at a Glance

Spruce-Pine'Fir from Ganada expected to be among top gainers in U.S. lumber consumption ... environmental problems in U.S., possible demise of importduty contribute to increase.

Shippers of Spruce-Pine-Fir, a production and marketing grouping of Canadian woods with similar characteristics, are poised for further penetrationinto U.S. markets. The Western Wood Products Association forecasts the largest growing source of wood products for American use this year will be imports, which are 98Vo ot more from Canada and predominantly S-P-F. Overall U.S. lwtber consumption is predicted o climb 3.9Vo ovet 1992 to 46.9 billion bf. Southern production should nse 7.9Vo to 15.1 billion bf, while western production shps2.2Vo to 18.17 billion bf. Inrports arc forecast !o jump 8.94o ta 14.56 billion bf.

Like all other species, S-P-F experienced the historic price highs and sudden plummet of recent months. No one can say where it will go nexl "Price is the big question," said David

Cartwright, director of new market development, Council of Forest Industries, Vancouver, British Columbia Canada. "What's causing the giant price fluctuations could be slower housing starts, the cold, delayed spring, the general economy or something else, or, I think, a combination of factors. So, where it's going to go is anybody's guess."

But the advantage S-P-F holds over U.S. competitors is supply. Canada has experienced limited opposition from environmental extremists. "Our environmental problems are basically on the coast of British Columbia, in the southern interior and close to the large meEopolitrn areas," Cartwright said. "The main S-P-F producing areas, tlus far, have not been seriously affected."

Still, to avoid possible public oiticism, some British Columbia producers of S-P-F bave voluntarily set aside old growth stands of timber. Other mills have been working with naturalists and hunters to preserve healthy, beautiful lands. They have set land aside for bird habitats and installed nesting boxes for birds. Timber companies have also upgraded logging roads to pneveni erosion of the land.

Following a sEong spring, Cartwight predicts the only possible curtaihnents in S-P-F production would be caused by lighter demand not limited supply. Since more than90%o of S-P-F produced ends up in North Arnerica, Canadian producers would love to see an end to the U.S. recession. "Should depressed areas like California see a resurgence in investment and consrucdon, S-P-F should increasingly pick up market share due to the constraints on hem-fir, Douglas fir and other traditional building mat€trials," he said.

Proposed changes in the countervailing duty on Canadian shipments into theU.S. would only increase S-P-F imports. "Recent decisions tend to indicate that it is not a fair tariff and could be eliminated, further easing the flow of Canadian product into the United States," Cartwright said.

What's S-P-F?

Spruce-Pine-Fir is a classification of predominately Canadian woods of similar characteristics grouped for production and marketing.

White to pale yellow in color, S-P-F woods are moderately shong, easy to work, take paint and hold nails well.

The greatest volume comes from western Canada where the principal species are white spruoe, Engelmann spruce, lodgepole pine and alpine fir. Foremost eastern species include red spruce, black spruce, jack pine and balsam fir.