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West Fraser Timber Co Ltd T.WFG

Alternate Symbol(s):  WFG

West Fraser Timber Co. Ltd. is a diversified wood products company. The Company is engaged in manufacturing, selling, marketing and distributing lumber, engineered wood products, including oriented strand board (OSB), laminated veneer lumber (LVL), medium-density fiberboard (MDF), plywood, particleboard, pulp, newsprint, wood chips and other residuals and renewable energy. Its products are used in home construction, repair and remodeling, industrial applications, paper, tissues, and box materials. Its segments include Lumber, North America engineered wood products (NA EWP), Pulp & Paper and Europe EWP. Its business comprises lumber mills, OSB facilities, renewable energy facilities, pulp and paper mills, plywood facilities, MDF facilities, particleboard facilities, LVL facility, treated wood facility, and veneer facility. The Company operates approximately 58 facilities in Canada, the United States, the United Kingdom and Europe. It also offers wood preservation services.


TSX:WFG - Post by User

Post by Hanalyst727on Apr 15, 2021 3:08am
197 Views
Post# 32998766

the boom and boom business

the boom and boom business


According to pg 36 of Louisiana Pacific's Feb presentation:

"OSB no longer a boom and bust business"

Agreed - now looks like a "boom and boom" business.

According to Madison's website - even "the most veteran industry players can’t believe" (the price levels)

It shouldn't really be too surprising. Commodities either trade based on cost of production (oversupply situation), or are rationed according to value to end user (excess demand). OPEC figured this out in the 70s. Only price will ration demand so that the highest margin homes will be built with it. Clearly this inflection point has been far surpassed with lumber, which is why it unlikely the price will be going back down any time soon in the absense of new mills, which take time to bring online.

Lumber prices also arn't up as much when normalized to home price inflation.

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