Interfor Corp T.IFP

Alternate Symbol(s): IFSPF

Forest Products Lumber & Wood Production

Interfor Corporation is a Canada-based forest products company. The Company and its subsidiaries produce wood products in Canada and the United States for sale to markets around the world. It operates through the solid wood products segment. The Company’s product categories include Dimension Lumber, Specialty Lumber and Engineered Wood Products. Its products include Spruce-Pine-Fir, Douglas Fir-Larch, Hem-Fir, Southern Yellow Pine, Western Red Cedar, Douglas Fir-Larch, and P3-Joist. Its sawmills provide a diverse range of sustainable products to supply North American markets with a complete offering of framing materials. Its Western Red Cedar products include Elite Decking, Elite Fascia & Boards, Elite V-Joint Paneling, Elite Fineline Paneling, Elite Channel/Lap Siding, Elite Bevel Siding and Elite Shadow Gap Siding. It has an annual lumber production capacity of approximately 5.0 billion board feet and offers a diverse line of lumber products to customers around the world.

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Interfor Corp

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Post by retiredcfon Oct 19, 2021 11:26am

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Post# 34022577

TD Notes

September U.S. Housing Starts/Permits A Little Below Estimates Event

The U.S. Census Bureau released September 2021 U.S. housing data this morning.

Housing starts of 1.555 million units (seasonally adjusted annual rate, SAAR) were 3.6% below the consensus forecast of 1.613 million units. September SAAR starts declined 1.6% m/m as unchanged single-family units were offset by a 5.1% m/m decline in multi-family units. The multi-family data series is typically more volatile. U.S. new home construction comprises ~25% of North American lumber shipments and ~50% of North American oriented strand board (OSB) shipments.

Lumber-weighted equities: West Fraser (WFG-N,T), Canfor (CFP-T), Interfor (IFP- T), Western Forest Products (WEF-T), Resolute Forest Products (RFP-N,T).

OSB-weighted equities: Louisiana-Pacific (LPX-N), West Fraser (WFG-N,T).

Impact: SLIGHTLY NEGATIVE

September housing starts and permits represented five-month and one-year lows, respectively. One attenuating factor, in our view, is that weaker trends last month were primarily weighted to the less wood-intensive multi-family segment. We attribute the moderation to ongoing supply chain disruptions and labor shortages as home demand remains strong. The October confidence index for single-family homebuilders released yesterday improved m/m for the second consecutive month and remains solidly in positive territory.

Details

September single-family SAAR starts of 1.080 million units were unchanged m/m (the August reading was revised 0.4% higher). September single-family starts were 17.9% below the December 2020 cyclical peak of 1.315 million units (15-year high).
September building permits (SAAR) of 1.589 million units (one-year low) were 5.4% below the consensus forecast of 1.680 million units. Building permits decreased 7.7% m/m, led by an 18.3% m/m decline for multi-family (single-family permits moderated only 0.9% m/m), and were 15.6% below the January 2021 peak of 1.883 million units.
The lumber and OSB price recovery continues. The cash market Western SPF 2x4 price is US$600/Mfbm (highest level since early-July 2021) — up 56% versus the mid-August trough. The benchmark North Central OSB price of US$490/Msf is also at a three-month high after having rallied 26% versus mid-August lows.