Wildfires raging across Canada have forced numerous shutdowns in the forest products industry and have caused lumber futures for July to surge 6.8% in just a week, The Canadian Press reported.
Nearly five million hectares of forest have burned so far, and some milling operations have been forced to suspend operations for safety reasons.
Montreal-headquartered Resolute Forest Products, which temporarily closed four sawmills due to fires and log shortages, told The Canadian Press the fires could lead to the worst year in more than three decades in terms of the forest area impacted.
"Although wildfire is a natural part of forest regeneration, the unseasonal heat and lack of rain has prompted many fires to erupt at the same time, making them very difficult to manage,” Resolute spokesperson Seth Kursman stated.
The wildfires are impacting Alberta, British Columbia and Quebec, Reuters reported.
"It's significant,” Forest Products Association of Canada CEO Derek Nighbor told Reuters. “Closing mills and having to restart them is a lot of work and that's people who have to be laid off temporarily.”
