Canfor Corp. said on Tuesday it expects North American and European lumber market fundamentals to remain strong in the first quarter of this year, while offshore lumber demand in Asia is expected to be slightly weaker.<\/p>\n
North America<\/strong><\/p>\n Canfor said the lean existing housing inventory will help support the fundamentals of the North American lumber market. The company said that old housing stock and strong domestic balance sheet would also be helpful.<\/p>\n The company said that activity in the repair and remodeling sector is expected to see downward pressure in the near term \u201cas a result of seasonally slowing consumption and reduction in consumer spending, with growth projected towards the end of the first quarter of 2022.\u201d<\/p>\n Asia<\/strong><\/p>\n Europe<\/strong><\/p>\n The European lumber market is projected to be relatively solid at the start of this year, \u201cdriven by a continued focus on green construction initiatives and projected growth in demand in the repair and remodeling sector.\u201d<\/p>\n Rail service<\/strong><\/p>\n \u201cThe limited and intermittent rail service in B.C. in recent weeks has put further pressure on an already disrupted global logistics network,\u201d Canfor said.<\/p>\n The company also said, \u201cDespite the fundamentals of overall favorable timber demand, transportation congestion in western Canada has significantly affected rail service from the company\u2019s sawmills in recent weeks.\u201d<\/p>\n Canfor nearly tripled record earnings in 2021<\/strong><\/p>\n Global lumber market strength and high production numbers offset weather and operational challenges for Canfor in 2021 and led to a record-breaking $1.9-billion operating income, the company reported.<\/p>\n Accounting for adjusting items, Canfor\u2019s 2021 operating income for 2021 was $2.188 billion, nearly triple its record earnings in 2020.<\/p>\n In their year-end and Q4 report, Canfor president and CEO Don Kayne called 2021 an exceptional year for Canfor.<\/p>\n \u201cAlthough our business was faced with global supply chain disruptions, the ongoing impacts of the COVID-19 pandemic and extreme weather conditions in BC, we were able to generate record-high results for 2021,\u201d Kayne said.<\/p>\n \u201cWe continue to see growing demand for the forest products we produce, together with a greater appreciation of their low carbon benefits. Recognizing that our employees at both Canfor and Canfor Pulp faced many challenges in 2021, we want to sincerely thank them for their exceptional commitment to safety, and outstanding resilience and performance. As we move into 2022, we anticipate solid global lumber demand, while for our pulp business we are focused on optimizing production performance, reducing costs, and maximizing fibre utilization in more moderate market conditions,\u201d he said.<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":" Canfor Corp. said on Tuesday it expects North American and European lumber market fundamentals to remain strong in the first quarter of this year, while offshore lumber demand in Asia is expected to be slightly weaker. North America Canfor said … Continue reading