Letko Brosseau on Forestry (Sept 2020)Here is an interesting report from Letko Brosseau on Forestry. Letko is a large Canfor shareholder.
https://www.lba.ca/wp-content/uploads/2020/09/Forestry-Update-9-September-2020.pdf
Here's a logical excerpt on the supply/demand fundamentals:
"North American demand for lumber and wood products is driven by housing construction (30%), repairs and renovations (40%), and industrial applications and exports (30%). Letko Brosseau has a positive long-term view on the wood products industry. The major reasons supporting our investments in this sector are economic growth, positive demographics with millennials at an age to purchase a first home and low mortgage rates. Additional factors include an aging housing stock which favours demand for repairs, and new advances in construction of multi-storey buildings with wood. Industry dynamics are also providing a positive backdrop. Low lumber prices in 2019, and fiber constraints in some regions like British Columbia, led to capacity rationalization, suggesting a favourable supply and demand balance for lumber in the years ahead."