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 4.7 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 Nov 29, 2021 8:57am

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Post# 34175170

TD Notes

Trees Weekly

Choppy P&FP Equity Performance as Variant Concerns Emerge Lumber Prices Still Climbing; Duty Rate Increase Confirmed

Forest product equity performance was mixed last week. The average week- over-week share-price increase of 0.2% for our coverage universe compared favourably with declines of 2.0% for the S&P/TSX Composite and 2.2% for the S&P 500. Although most names traded lower on Friday in tandem with the broader sell-off tied to COVID-19 variant concerns, gains earlier in the week were pronounced. Positive performance was led by IFP (reaction to EACOM Timber acquisition announcement) and pulp-weighted equities. Since Q3/21 lows, the average recovery for our coverage universe is 17.2%.
Canadian lumber prices are still climbing, as expected; duty increase confirmed. The benchmark Western SPF 2x4 cash market price increased another 4% last week to US$645/Mfbm. Price gains in eastern Canada were similar. On November 24, the U.S. Department of Commerce announced that average aggregate countervailing and anti-dumping duties applied on Canadian softwood lumber shipments to the U.S. will increase to 17.9% from 9.0% before the end of the month. This increase was part of a second administrative review covering 2019 when lumber prices were much lower (i.e., dumping and subsidization arguments are easier) and was not a surprise.
OSB markets are flat. The benchmark North Central price of US$500/Msf has been unchanged over the past six weeks. Supply constraints related to recent B.C. floods and mudslides were noted as a factor keeping markets tight.
Softwood pulp prices show some signs of firming in China. The nearest NBSK futures contract price on the Shanghai exchange increased 6% last week and market reports suggest several exporters are proposing December price increases of US$10/tonne (to US$720/tonne, net of discounts). NBSK prices in China have declined 30% since April. October data published last week indicate global pulp shipments declined 6.0% y/y, while overall mill inventories were flat.