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 Apr 04, 2022 8:57am

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Post# 34572434

TD Notes

Trees Weekly

Lumber Price Correction Gains Pace, Led by U.S. South

Forest product equity declines accelerated last week as the lumber commodity price correction continues. The average share-price decline of 5.2% for our coverage universe last week compared with a modest decline of 0.2% for the S&P/TSX Composite and a small gain of 0.1% for the S&P 500. Building on the recent trend, weakness was weighted to wood-heavy equities (lumber and OSB producers were down 7.0%, on average, last week). Share prices for our coverage universe are 17.4% below mid-January 2022 peaks. Sector valuations are contracting even with prospects for positive revisions to 2022 consensus estimates.

Lumber price weakness is weighted to the U.S. South. The benchmark Western SPF 2x4 price declined 11% last week to US$1,200/Mfbm and is down 14% from the recent high two weeks ago. The gap between the cash price and the nearest futures contract (US$965/Mfbm for May delivery) remains high. Cash market price declines were particularly severe in the U.S. South last week — especially for narrow widths; the regional composite price declined 14% last week and is down 22% since mid-March. Market reports noted tepid buying interest as mortgage rates continue to rise at a rapid rate.

OSB prices pull back from the peak. For the first time since last August, North American OSB prices declined. The benchmark North Central price declined 4% w/w to US$1,225/Msf. Prices in western Canada and the U.S. Southwest declined 5%. Overall price levels remain exceptional, but reports referenced falling demand from the DIY segment.
Final March pulp prices show broad positive momentum. Fastmarkets RISI published final month-ending pulp prices late last week. The list NBSK price in North America increased US$100/tonne to US$1,615/tonne (matching the nominal record from June 2021). Effective NBSK transaction prices in China increased US$110/tonne to US$985/tonne. Further increases are on deck for April as freight hurdles and downtime have added to market tension.