West Fraser Timber Co Ltd T.WFG

Alternate Symbol(s): WFG

Forest Products Lumber & Wood Production

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.

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West Fraser Timber Co Ltd

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Post by retiredcfon Nov 15, 2022 8:28am

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Post# 35099177

TD Notes

Trees Weekly

Forest Product Equities Rise in Tandem with Broader Markets Commodity Wood Products Markets Remain Sluggish

Forest product equities pare back recent losses. The average share-price improvement for our coverage universe last week was 3.8%, which compared with gains of 3.3% for the S&P/TSX Composite and 5.3% for the S&P 500. Sector outliers included Western Forest (down 8.7%) and Cascades (down 1.2%) as investors digested weak Q3 results and tempered near-term guidance. The average decline from 52-week highs for our coverage universe is 16.8% versus declines of 9.0% for the S&P/TSX Composite and 17.2% for the S&P 500.
North American lumber prices are generally drifting lower amid a subdued market tone. The Western SPF 2x4 (#2 & better) cash price declined 7% from last week to US$430/Mfbm, a one-year low matching levels from early-October. Tighter supplies supported modest gains in the U.S. South, with the Southern Yellow Pine 2x4 (#2 & better) cash price up 1% w/w (the current price of US $455/Mfbm remains near the lowest level since May 2020). Trade periodicals referenced slowing homebuilder demand and inconsistent economic data as weighing on sentiment.
OSB prices remain stable. The benchmark North Central OSB price has held at US$360/Msf since early-September. Prices in other regions are also unchanged. Market reports indicate buyers sticking to near-term needs and maintaining lean inventories.
Softwood pulp prices in China are moderating. The average net transaction price for Northern Bleached Softwood Kraft (NBSK) pulp imported into China is steady at US$933/ton but trade periodicals indicate that Canadian NBSK pulp producers have cut prices by ~US$20-$30/tonne in recent weeks (lower price offers remain within the previous industry range which averages US$933/tonne).