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 Dec 06, 2021 8:33am

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Post# 34201425

TD Notes

Trees Weekly

Wood-weighted Equities Surge as Commodities Gain Pace Lumber: Counter-seasonal Demand Plus Shipping Constraints

Most forest product equities climbed last week on the back of accelerating lumber price gains. The average week-over-week share-price increase of 1.4% for our coverage universe countered declines of 2.3% for the S&P/TSX Composite and 1.2% for the S&P 500. Sentiment for lumber and OSB commodity markets is increasingly positive and provided support for wood-weighted equities. For the second consecutive week, gains were led by IFP (+7.2% w/w and +40.3% from the mid-August low). We believe that the company is benefiting from its status as a lumber pure-play and from positive reaction to recent growth initiatives. Since Q3/21 lows, the average share-price recovery for our coverage universe is 17.5%.
Lumber prices are on fire... again. The benchmark Western SPF 2x4 cash market price increased 16% last week to US$745/Mfbm, the highest level since late-June and up almost two-fold from the late-August low. The nearest Western SPF futures contract ended the week at US$906/Mfbm — a steep premium to cash markets. Shipping constraints and downtime related to B.C. floods are contributing to tighter markets, but demand has also outpaced expectations, supported by favourable weather through much of the U.S.
OSB markets are starting to regain momentum. The benchmark North Central price of US$510/Msf increased US$10/Msf w/w — the first weekly increase since mid-October. Price increases in western Canada were more pronounced (significant shipping hurdles tied to floods and related mudslides).
Western Canadian pulp mill downtime adding up. Over the past week, Canfor Pulp and West Fraser announced plans for temporary pulp mill downtime to address shipping impediments related to recent B.C. floods. The effective NBSK pulp transaction price in China ended November at an average of US$696/ tonne — down 2% m/m and a one-year low, but price hikes are on the table for December.