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 Mar 07, 2022 8:56am

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Post# 34489614

TD Notes

Trees Weekly

Mixed Forest Product Equity Trends
Russia Supply Speculation + Shipping Bottlenecks Propel Lumber

Last week, forest product equity performance was mixed as geopolitical developments contributed to volatility. The average share-price decline of 1.1% for our coverage universe last week compared with a gain of 1.4% for the S&P/TSX Composite and a decline of 1.3% for the S&P 500. Performance varied across the sector, with pulp producers leading downward momentum (at -15.4%, CFX was the negative outlier following weak Q4/21 results and a tempered outlook). The average share-price decline for our coverage universe from recent Q1/22 peaks is 11.1%.
Lumber prices show no immediate signs of peaking. The benchmark Western SPF 2x4 price gained another 3% week-over-week to US$1,400/Mfbm. Price gains were relatively strong for Canadian grades, given ongoing acute shipping constraints. There was also speculation that reduced Western European lumber purchases from Russia could have a positive price ripple effect for North America (i.e., U.S. imports from western Europe could decline).
OSB price gains moderate from recent pace. The benchmark North Central price of US$1,250/Msf increased 2% week-over-week - a deceleration from 5% the previous week. Market reports cited buyer fatigue and strained credit limits as contributing to a more cautious tone. Overall price levels remain exceptional and near nominal records.

Containerboard industry aligns behind March price increase effort. Producers started to implement a US$70/ton increase last week (+8% for the reference linerboard price). If successful, this would mark the fourth increase in 17 months (+32% since October 2020). We expect a protracted implementation, given slowing corrugated box demand growth and high scheduled capacity expansion rates. In our experience, cost-push-led price increase efforts face relatively high resistance.