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 Feb 06, 2023 9:24am

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Post# 35268866

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You're welcome possible. GLTA

Trees Weekly

Forest Product Equities Gains Decelerate from Prior Week Lumber Prices Still Improving with Slowing Momentum

Sector equities continued to advance, but lost pace towards the end of the week. The average share-price gain for our coverage universe last week was 3.5%, with broad appreciation across commodity weightings. Sector improvement outpaced the S&P/TSX Composite (+0.2%) and the S&P 500 (+1.6%). On average, share prices for our coverage universe have improved 27.6% from Q4/22 lows — an easy reference point, but still a sharp turnaround, especially for wood- weighted names, which have improved 38.7% from recent floors.
Lumber commodity prices are still improving, but gains decelerated last week. The Western SPF 2x4 (#2 & better) cash price ended last Thursday at US $460/Mfbm — up 11% w/w versus a 15% improvement in the previous week. The nearest Western SPF futures contract ended the week at US$500/Mfbm and has improved 39% since January 6. The Southern Yellow Pine 2x4 (#2 & better) cash price increased 6% w/w to US$482/Mfbm — the highest level since last October. Market reports referenced stalled momentum in the second half of last week.
OSB prices are also climbing. The benchmark North Central price ended last week at US$245/Msf — up 4% w/w. Gains were similar in other key regions. Anecdotal commentary mentioned cautious buying with order files that extend to late-February.

Improving sentiment for softwood pulp in China. Final January Northern bleached softwood kraft (NBSK) list prices published by RISI Fastmarkets declined US$20/tonne in North America to US$1,700/tonne, but the market tone is shifting in China. Production cuts in western Canada and renewed buying post- Lunar New Year have led to tighter markets and motivated Canfor Pulp to lead the way with a US$30/tonne price increase effort in February to ~US$930/tonne on a net basis.