West Fraser Timber Co Ltd T.WFG

Alternate Symbol(s): WFG

Forest Products Lumber & Wood Production

West Fraser Timber Co. Ltd. is a diversified wood products company. The Company is engaged in manufacturing, selling, marketing and distributing lumber, engineered wood products, including oriented strand board (OSB), laminated veneer lumber (LVL), medium-density fiberboard (MDF), plywood, particleboard, pulp, newsprint, wood chips and other residuals and renewable energy. Its products are used in home construction, repair and remodeling, industrial applications, paper, tissues, and box materials. Its segments include Lumber, North America engineered wood products (NA EWP), Pulp & Paper and Europe EWP. Its business comprises lumber mills, OSB facilities, renewable energy facilities, pulp and paper mills, plywood facilities, MDF facilities, particleboard facilities, LVL facility, treated wood facility, and veneer facility. The Company operates approximately 58 facilities in Canada, the United States, the United Kingdom and Europe. It also offers wood preservation services.

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West Fraser Timber Co Ltd

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Post by retiredcfon Mar 06, 2023 8:41am

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Post# 35320869

TD Notes

Trees Weekly

Lumber Prices Drift Lower as Industry Waits on More Supply Cuts OSB Markets Steady; Downtime Matches Demand Weakness

Most forest product equities posted share-price gains last week, in tandem with broader market trends. On average, wood-weighted names in our coverage universe improved 3.5%, led by IFP (up 3.5%). Pulp & paper-weighted equities' performance was also positive: the average weekly gain was 3.1%. Sector trends outpaced gains of 1.8% for the S&P/TSX Composite and 1.9% for the S&P 500.
Lumber markets struggling for momentum; prices have drifted lower. The Western SPF 2x4 (#2 & better) cash price ended last Thursday at US$372/Mfbm — a six-week low, down 5% w/w, and down 19% versus the early-February high. Weak futures markets, rising mortgage rates, and weather weighed on sentiment. Reference 2x4 (#2 & better) Southern Yellow Pine prices fell 2% w/w.
OSB prices remain in a holding pattern. The benchmark North Central price ended last week at US$250/Msf, flat for the past four weeks. Prices in other regions were little-changed. Reports noted short order files of ~2 weeks, with producer downtime keeping markets balanced for now.
Mixed momentum for global pulp prices. Following news last week of European producers proposing price hikes on export contract Northern Bleached Softwood Kraft (NBSK) pulp to China of US$20/tonne, one European supplier has revoked the initiative in the face of customer pushback. Lower-priced spot tonnage imports have pressured markets. The current price of imported NBSK pulp into China is US$898/tonne — closing in on early-2023 lows and 11% below the July 2022 peak.