Canfor Corp. (TSX: CFP.TO) cut production on Tuesday amidst a falling global demand for softwood lumber that has sent prices for the resource into decline.
After Canfor announced the production slowdown, Reuters reported that lumber prices on the Chicago market jumped more than 4%.
The Vancouver company, Canada's largest softwood producer, said that with no sign of an imminent market recovery, it's reducing production volume and work weeks at a number of its operations.
As well, shifts at Canfor's Prince George sawmill will drop to two from three and to one from two at its Clear Lake finger joint operation.
Canfor's annual lumber production will consequently decrease by approximately 600 million board feet.
The company's share price this week ranged between $8.05 and $8.30; 52-week high: $13.98; 52-week low: $7.46.