Chinese demand for B.C. lumber takes off

Thursday, October 27, 2008

http://www.canada.com/vancouversun/story.html?id=08d079c6-eea7-41db-8b3f-ea97c900d0a7

This article explains about the sudden growing demand for BC lumber from Asian Countries like China and Japan mostly due to the increasing tax raise of 80 per cent for the value of raw logs implemented by the Russian government that will be put to action in the beginning of 2009 and also, a sudden emergence of middle class citizen that are importunate over high-end wood in countries like China. With China sudden emergence as a major market in the BC lumber, it will certainly fill in the gaps that the US left when the US housing market imploded two years ago. This resulted in an incremental closure of sawmills and workers layoff. According to Forest Minister Pat Bell, BC lumber is expecting to reach the one billion mark this year.

Connections to Introduction

The connection I make with the current situation in the BC lumber industry and the chapter in our text has to do with Demand. What we have in BC is basically a situation where we are taking advantage of the situation in Russia where there is an increase in tax for the value of raw logs. This is where the concept of Demand comes in play because with Russia irritating and scaring the Asian countries of China and Japan with the possibility of increasing the taxes to their raw logs, China and Japan will start seeking other alternatives like the BC lumber industry, which will cause a sudden demand for BC lumber.

Reflection

Personally, I think this article is great news for us BC citizens because this tells us that our lumber is going to be in large demand from many countries and this will subsequently strengthen our economy dramatically. I think this is a big lost for the country of Russia because they are missing out on great profit that could be fantastic in any countries economy. If by January of 2009 Russia decides to raise the taxes for raw logs, then this will lead many other countries to leave the Russian lumber and make the transition to our BC lumber. In the long run, we are looking at a very bright future for our BC lumber industry and possibly even eclipsing the multi-billion mark.