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 20, 2021 7:28am

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Post# 34246016

TD Notes

Trees Weekly

Lumber & OSB Commodity Price Surge has Legs Equities Take a Breather Following Recent Rally

Forest product equities took a breather last week, following recent share- price strength. The average week-over-week share-price decline of 1.3% for our coverage universe was consistent with broader market weakness. Investors digested recent gains and looked past ongoing exceptional lumber and panel commodity price momentum. Weaker trends last week were led by RFP (down 6.4% w/w, following a 41.8% recovery from the mid-September low). Since Q3/21 lows, the average share-price recovery for our coverage universe is 23.5%.
Lumber prices keep climbing as strong demand growth corresponds with supply constraints. The benchmark Western SPF 2x4 cash market price increased 12% to US$985/Mfbm — the highest level since mid-June and well above our view of mid-cycle potential. Price gains decelerated from the recent pace, but overall trends are very strong, driven by above-normal demand (confirmed by better-than-expected November U.S. housing starts) and ongoing shipping hurdles — the latter exacerbated by tight log supply in some regions.
The OSB price recovery gained momentum last week. The benchmark North Central price of US$610/Msf increased US$60/Msf w/w (+12% — the fastest weekly gain since late-July). Price gains in western Canada outpaced other regions. Market reports referenced order files extending well into January and sellers taking product off the market through the second half of last week.
Opposing trends across pulp markets. List northern bleached softwood kraft (NBSK) pulp prices dropped US$10-US$30/tonne in December (to US$1,440/ tonne at the bottom end of the range), while spot prices gained slightly. According to Fastmarkets RISI, effective transaction NBSK prices in China increased 8% m/ m, as B.C. shipping constraints supported producers' price-hike efforts.