There was a newsworthy event in the eastern spruce lumber market yesterday. It was announced that Arbec, a major eastern Canadian lumber producer, was shutting down all their sawmill and logging operations this Monday for an indefinite time, impacting roughly 700 million board feet of production. They will dress the remaining rough lumber they have on the ground, which is thought to be 2 to 4 weeks of supply. The motivation behind this move was both political and financial. Reactions were tepid to start but expected to escalate.
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