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 Sep 27, 2021 10:02am

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TD Notes

Trees Weekly

Forest Product Equity Gains Accelerated Last Week Lumber Price Gains Continue to Outpace OSB

Forest product equity performance was volatile last week, but share prices ended on a strong note. The average week-over-week share-price increase of 6.9% for our coverage universe significantly outpaced a 0.4% decline for the S&P/ TSX Composite and a modest 0.5% gain for the S&P 500. Sector strength last week was heavily weighted towards lumber producers, which posted average appreciation of 10.4%, led by IFP and RFP. The average sector gain from recent lows is 20.0%.
Lumber prices improving at a steady pace across all regions. The Random Lengths framing lumber composite price of US$469/Mfbm improved 5% w/w, with comparable gains evident across all regions. Market reports suggested that channel inventories have declined enough to bring buyers back to the table. The nearest Western SPF 2x4 futures contract price of US$643/Mfbm has improved 44% from late-August lows and is 30% above the cash market price.
OSB prices creep higher. The North Central price of US$460/Msf increased 2% last week — the sixth consecutive weekly gain. Anecdotal reports suggest that resin shortages have eased, leading to higher commodity OSB volumes, which has tempered producer sentiment. Order files remain relatively short.
August global pulp data indicate ongoing slack in the market. The Pulp & Paper Products Council released World-20 chemical paper-grade market pulp data for August last week. Shipments declined 6.7% (outpacing the year-to-date decline of 3.9%) and mill inventories increased to 47 days of supply at the end of the month - the highest point since this time last year. Recent reports indicate decelerating negative NBSK pulp price momentum in China, but, in our view, markets are soft.