BC Timber strike likely to create as many winners as losers.

Implications: While the BC Logging and sawmill strike is likely to have a negative impact on coastal BC pulp and paper mills as they run out of wood chips, it is likely to benefit US Pacific Northwest operators.  Also many BC sawmills were losing money during the currently poor lumber market, so welcome the opportunity to shut down.

Analysis: The longer a BC timber workers strike lasts, the more likely it is to further impact the already tight supply of pulp and wood chips on the Pacific Coast.  This will drive up prices for pulpwood, wood chips, and market pulp, especially in the US Pacific Northwest.
While BC companies such as Catalyst Papers, Howe Sound Pulp, and the Canadian operations of Pope and Talbot will suffer, US PNW  timberland owners such as Pope Resources, Hampton Resources, Longview Fibre, Plum Creek, etc. will benefit greatly from the higher prices they receive for some of the output from their timberlands. Secondarily the reduced output of lumber caused by the strike will help narrow the current supply demand imbalance in that sector.