{"id":99441,"date":"2026-07-30T02:32:50","date_gmt":"2026-07-30T02:32:50","guid":{"rendered":"https:\/\/www.timberindustrynews.com\/?p=99441"},"modified":"2026-07-30T12:59:50","modified_gmt":"2026-07-30T12:59:50","slug":"canfor-lumber-operations-return-to-profit-european-markets-regain-balance","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/canfor-lumber-operations-return-to-profit-european-markets-regain-balance\/","title":{"rendered":"Canfor lumber operations return to profit; European markets regain balance"},"content":{"rendered":"<p>Canfor\u2019s lumber operations returned to profit in the second quarter of 2026 as higher benchmark prices, stronger production and increased shipments reversed much of the deterioration seen at the beginning of the year.<\/p>\n<p>The company reported lumber operating income of CAD 41.2 million, compared with an operating loss of CAD 43.7 million in the first quarter. After inventory adjustments, impairments and closure-related costs, adjusted operating income reached CAD 56.7 million, against an adjusted loss of CAD 63.7 million three months earlier.<\/p>\n<p>The improvement was driven primarily by higher lumber sales realizations, increased production and lower unit manufacturing and product costs. Canfor\u2019s total lumber sales rose 16% quarter on quarter to CAD 1.38 billion, while shipments increased 8% to 1.35 billion board feet and production grew 6% to 1.29 billion board feet.<!--more--><\/p>\n<div style=\"margin: 24px 0; overflow-x: auto;\">\n<table style=\"width: 100%; border-collapse: separate; border-spacing: 0; font-family: Arial, Helvetica, sans-serif; font-size: 15px; color: #243447; border: 1px solid #b9ccdc; border-radius: 8px; overflow: hidden; box-shadow: 0 2px 7px rgba(31,78,121,0.10);\">\n<thead>\n<tr>\n<th style=\"padding: 13px 15px; text-align: left; background: #1f4e79; color: #ffffff; border-right: 1px solid #6f98b8;\">Lumber segment<\/th>\n<th style=\"padding: 13px 15px; text-align: right; background: #1f4e79; color: #ffffff; border-right: 1px solid #6f98b8;\">Q2 2026<\/th>\n<th style=\"padding: 13px 15px; text-align: right; background: #1f4e79; color: #ffffff;\">Q1 2026<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr style=\"background: #eef5fa;\">\n<td style=\"padding: 12px 15px; border-top: 1px solid #cbd9e4; border-right: 1px solid #cbd9e4;\"><strong>Sales<\/strong><\/td>\n<td style=\"padding: 12px 15px; text-align: right; border-top: 1px solid #cbd9e4; border-right: 1px solid #cbd9e4;\"><strong>CAD 1.38 billion<\/strong><\/td>\n<td style=\"padding: 12px 15px; text-align: right; border-top: 1px solid #cbd9e4;\">CAD 1.19 billion<\/td>\n<\/tr>\n<tr style=\"background: #ffffff;\">\n<td style=\"padding: 12px 15px; border-top: 1px solid #cbd9e4; border-right: 1px solid #cbd9e4;\">Operating income\/loss<\/td>\n<td style=\"padding: 12px 15px; text-align: right; border-top: 1px solid #cbd9e4; border-right: 1px solid #cbd9e4;\">CAD 41.2 million<\/td>\n<td style=\"padding: 12px 15px; text-align: right; border-top: 1px solid #cbd9e4; color: #a61b1b;\">\u2212CAD 43.7 million<\/td>\n<\/tr>\n<tr style=\"background: #eef5fa;\">\n<td style=\"padding: 12px 15px; border-top: 1px solid #cbd9e4; border-right: 1px solid #cbd9e4;\">Adjusted operating income\/loss<\/td>\n<td style=\"padding: 12px 15px; text-align: right; border-top: 1px solid #cbd9e4; border-right: 1px solid #cbd9e4;\">CAD 56.7 million<\/td>\n<td style=\"padding: 12px 15px; text-align: right; border-top: 1px solid #cbd9e4; color: #a61b1b;\">\u2212CAD 63.7 million<\/td>\n<\/tr>\n<tr style=\"background: #ffffff;\">\n<td style=\"padding: 12px 15px; border-top: 1px solid #cbd9e4; border-right: 1px solid #cbd9e4;\">Shipments<\/td>\n<td style=\"padding: 12px 15px; text-align: right; border-top: 1px solid #cbd9e4; border-right: 1px solid #cbd9e4;\">1.35 billion board feet<\/td>\n<td style=\"padding: 12px 15px; text-align: right; border-top: 1px solid #cbd9e4;\">1.26 billion board feet<\/td>\n<\/tr>\n<tr style=\"background: #eef5fa;\">\n<td style=\"padding: 12px 15px; border-top: 1px solid #cbd9e4; border-right: 1px solid #cbd9e4;\">Production<\/td>\n<td style=\"padding: 12px 15px; text-align: right; border-top: 1px solid #cbd9e4; border-right: 1px solid #cbd9e4;\">1.29 billion board feet<\/td>\n<td style=\"padding: 12px 15px; text-align: right; border-top: 1px solid #cbd9e4;\">1.21 billion board feet<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p><strong>Higher benchmark prices improve sales realizations<\/strong><\/p>\n<p>North American benchmark prices strengthened through much of the quarter, although the improvement reflected tight inventories, transport constraints and seasonal purchasing more than a recovery in housing demand.<\/p>\n<p>Western SPF 2x4 averaged US$488 per thousand board feet, up 5% from the first quarter. Southern Yellow Pine 2x4 increased 4% to US$517, while the 2x6 benchmark rose 8% to US$457.<\/p>\n<div style=\"margin: 24px 0; overflow-x: auto;\">\n<table style=\"width: 100%; border-collapse: separate; border-spacing: 0; font-family: Arial, Helvetica, sans-serif; font-size: 15px; color: #243447; border: 1px solid #b9ccdc; border-radius: 8px; overflow: hidden; box-shadow: 0 2px 7px rgba(31,78,121,0.10);\">\n<thead>\n<tr>\n<th style=\"padding: 13px 15px; text-align: left; background: #1f4e79; color: #ffffff; border-right: 1px solid #6f98b8;\">Benchmark lumber price<\/th>\n<th style=\"padding: 13px 15px; text-align: right; background: #1f4e79; color: #ffffff; border-right: 1px solid #6f98b8;\">Q2 2026<\/th>\n<th style=\"padding: 13px 15px; text-align: right; background: #1f4e79; color: #ffffff; border-right: 1px solid #6f98b8;\">Q1 2026<\/th>\n<th style=\"padding: 13px 15px; text-align: right; background: #1f4e79; color: #ffffff;\">Change<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr style=\"background: #eef5fa;\">\n<td style=\"padding: 12px 15px; border-top: 1px solid #cbd9e4; border-right: 1px solid #cbd9e4;\"><strong>Western SPF 2x4<\/strong><\/td>\n<td style=\"padding: 12px 15px; text-align: right; border-top: 1px solid #cbd9e4; border-right: 1px solid #cbd9e4;\">US$488\/mbf<\/td>\n<td style=\"padding: 12px 15px; text-align: right; border-top: 1px solid #cbd9e4; border-right: 1px solid #cbd9e4;\">US$463\/mbf<\/td>\n<td style=\"padding: 12px 15px; text-align: right; border-top: 1px solid #cbd9e4;\"><strong>+5%<\/strong><\/td>\n<\/tr>\n<tr style=\"background: #ffffff;\">\n<td style=\"padding: 12px 15px; border-top: 1px solid #cbd9e4; border-right: 1px solid #cbd9e4;\"><strong>Southern Yellow Pine 2x4<\/strong><\/td>\n<td style=\"padding: 12px 15px; text-align: right; border-top: 1px solid #cbd9e4; border-right: 1px solid #cbd9e4;\">US$517\/mbf<\/td>\n<td style=\"padding: 12px 15px; text-align: right; border-top: 1px solid #cbd9e4; border-right: 1px solid #cbd9e4;\">US$495\/mbf<\/td>\n<td style=\"padding: 12px 15px; text-align: right; border-top: 1px solid #cbd9e4;\"><strong>+4%<\/strong><\/td>\n<\/tr>\n<tr style=\"background: #eef5fa;\">\n<td style=\"padding: 12px 15px; border-top: 1px solid #cbd9e4; border-right: 1px solid #cbd9e4;\"><strong>Southern Yellow Pine 2x6<\/strong><\/td>\n<td style=\"padding: 12px 15px; text-align: right; border-top: 1px solid #cbd9e4; border-right: 1px solid #cbd9e4;\">US$457\/mbf<\/td>\n<td style=\"padding: 12px 15px; text-align: right; border-top: 1px solid #cbd9e4; border-right: 1px solid #cbd9e4;\">US$425\/mbf<\/td>\n<td style=\"padding: 12px 15px; text-align: right; border-top: 1px solid #cbd9e4;\"><strong>+8%<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>Canfor said the strongest support came from lean field inventories and limited transport capacity, particularly in the US South. Species substitution also favoured Southern Yellow Pine pricing.<\/p>\n<p>The company expects North American lumber markets to remain firm during the early part of the third quarter, but believes conditions will soften later in the period. Housing affordability, elevated borrowing costs and economic uncertainty continue to limit the prospect of a sustained demand-led recovery.<\/p>\n<p><strong>European business recovers from weak first quarter<\/strong><\/p>\n<p>Canfor\u2019s European operations improved substantially from the first quarter, helped by higher output, stronger shipments and better market pricing.<\/p>\n<p>European sales rose to CAD 591.7 million from CAD 513.0 million in the first quarter. The business reduced its operating loss to CAD 0.7 million from CAD 35.1 million, while operating income before amortization reached CAD 21.4 million after a CAD 12.4 million loss three months earlier.<\/p>\n<p>Production recovered as mills operated for more hours following winter-related disruptions. European planer output increased 13% quarter on quarter to 415 million board feet, while shipments rose 12% to 518 million board feet.<\/p>\n<div style=\"margin: 24px 0; overflow-x: auto;\">\n<table style=\"width: 100%; border-collapse: separate; border-spacing: 0; font-family: Arial, Helvetica, sans-serif; font-size: 15px; color: #243447; border: 1px solid #b9ccdc; border-radius: 8px; overflow: hidden; box-shadow: 0 2px 7px rgba(31,78,121,0.10);\">\n<thead>\n<tr>\n<th style=\"padding: 13px 15px; text-align: left; background: #1f4e79; color: #ffffff; border-right: 1px solid #6f98b8;\">European operations<\/th>\n<th style=\"padding: 13px 15px; text-align: right; background: #1f4e79; color: #ffffff; border-right: 1px solid #6f98b8;\">Q2 2026<\/th>\n<th style=\"padding: 13px 15px; text-align: right; background: #1f4e79; color: #ffffff;\">Q1 2026<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr style=\"background: #eef5fa;\">\n<td style=\"padding: 12px 15px; border-top: 1px solid #cbd9e4; border-right: 1px solid #cbd9e4;\"><strong>Sales<\/strong><\/td>\n<td style=\"padding: 12px 15px; text-align: right; border-top: 1px solid #cbd9e4; border-right: 1px solid #cbd9e4;\"><strong>CAD 591.7 million<\/strong><\/td>\n<td style=\"padding: 12px 15px; text-align: right; border-top: 1px solid #cbd9e4;\">CAD 513.0 million<\/td>\n<\/tr>\n<tr style=\"background: #ffffff;\">\n<td style=\"padding: 12px 15px; border-top: 1px solid #cbd9e4; border-right: 1px solid #cbd9e4;\">Operating income\/loss<\/td>\n<td style=\"padding: 12px 15px; text-align: right; border-top: 1px solid #cbd9e4; border-right: 1px solid #cbd9e4; color: #a61b1b;\">\u2212CAD 0.7 million<\/td>\n<td style=\"padding: 12px 15px; text-align: right; border-top: 1px solid #cbd9e4; color: #a61b1b;\">\u2212CAD 35.1 million<\/td>\n<\/tr>\n<tr style=\"background: #eef5fa;\">\n<td style=\"padding: 12px 15px; border-top: 1px solid #cbd9e4; border-right: 1px solid #cbd9e4;\">Operating income\/loss before amortization<\/td>\n<td style=\"padding: 12px 15px; text-align: right; border-top: 1px solid #cbd9e4; border-right: 1px solid #cbd9e4;\">CAD 21.4 million<\/td>\n<td style=\"padding: 12px 15px; text-align: right; border-top: 1px solid #cbd9e4; color: #a61b1b;\">\u2212CAD 12.4 million<\/td>\n<\/tr>\n<tr style=\"background: #ffffff;\">\n<td style=\"padding: 12px 15px; border-top: 1px solid #cbd9e4; border-right: 1px solid #cbd9e4;\">Planer production<\/td>\n<td style=\"padding: 12px 15px; text-align: right; border-top: 1px solid #cbd9e4; border-right: 1px solid #cbd9e4;\">415 million board feet<\/td>\n<td style=\"padding: 12px 15px; text-align: right; border-top: 1px solid #cbd9e4;\">368 million board feet<\/td>\n<\/tr>\n<tr style=\"background: #eef5fa;\">\n<td style=\"padding: 12px 15px; border-top: 1px solid #cbd9e4; border-right: 1px solid #cbd9e4;\">Shipments<\/td>\n<td style=\"padding: 12px 15px; text-align: right; border-top: 1px solid #cbd9e4; border-right: 1px solid #cbd9e4;\">518 million board feet<\/td>\n<td style=\"padding: 12px 15px; text-align: right; border-top: 1px solid #cbd9e4;\">461 million board feet<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>European lumber prices improved moderately from the first quarter as inventories across the supply chain became leaner. The increase was achieved despite weak underlying demand and continued uncertainty in several end markets.<\/p>\n<p>Purchasing activity improved in Scandinavia after the winter slowdown, while Central European demand remained weak. In the UK, repair and remodeling activity provided some support as residential construction stayed subdued. Export conditions in the Middle East and North Africa improved later in the quarter after an initially disrupted period.<\/p>\n<p>Canfor\u2019s European sales realizations increased moderately quarter on quarter, although the benefit was partly offset by a stronger Canadian dollar against the Swedish krona. Compared with the second quarter of 2025, regional prices remained slightly lower.<\/p>\n<p><strong>European volumes exceed last year, but margins remain lower<\/strong><\/p>\n<p>Canfor\u2019s European shipments were 21% higher than in the second quarter of 2025, supported in part by the AB Karl Hedin S\u00e5gverk facilities acquired in late 2025.<\/p>\n<p>Production from European sawmills reached 486 million board feet, compared with 436 million board feet a year earlier. However, the increase in volumes did not produce stronger year-on-year earnings.<\/p>\n<p>European operating income fell from CAD 19.7 million in the second quarter of 2025 to a small loss in the latest quarter. Operating income before amortization also declined from CAD 40.3 million to CAD 21.4 million.<\/p>\n<p>Lower lumber prices and higher unit conversion costs outweighed the benefit of increased production and shipments. This left Canfor selling considerably more European lumber than a year earlier, but at weaker margins.<\/p>\n<p><strong>Urshult and Orrefors closures address fibre imbalance<\/strong><\/p>\n<p>Canfor permanently closed its Urshult and Orrefors sawmills in southern Sweden after determining that available fibre could not support the region\u2019s installed production capacity.<\/p>\n<p>The company recognized CAD 13.7 million in asset write-downs and impairments and CAD 8.8 million in restructuring and closure costs during the quarter.<\/p>\n<p>The closures were attributed to a structural imbalance between sawmill capacity and fibre availability rather than solely to the current weakness in lumber demand.<\/p>\n<p>Canfor continues to expand output elsewhere in its European network, including through the Hedin assets, while reducing exposure to mills operating in tighter raw material markets.<\/p>\n<p><strong>Canfor expects European prices to remain supported in Q3<\/strong><\/p>\n<p>Canfor expects European lumber conditions to remain relatively balanced during the third quarter.<\/p>\n<p>Demand is forecast to remain steady rather than accelerate, but constrained supply and continuing export activity are expected to support prices. UK market conditions are likely to remain stable, while the direction of sales and pricing into the Middle East and North Africa will depend on geopolitical developments.<\/p>\n<p>The outlook suggests that the improvement seen during the second quarter can continue, although Canfor is not forecasting a strong recovery in European construction demand.<\/p>\n<p>The immediate support for the market comes instead from lower inventories, restricted supply and export flows. That combination may keep prices stable even while domestic demand remains subdued.<\/p>\n<p><strong>Asian markets remain under pressure<\/strong><\/p>\n<p>Canfor expects Japan and China to remain difficult markets through the third quarter.<\/p>\n<p>Japanese housing starts remain weak, import volumes have fallen and domestic species are taking a larger share of consumption. The company expects greater substitution toward locally sourced fibre to continue placing pressure on import demand and lumber prices.<\/p>\n<p>Construction activity in China also remains subdued, with limited evidence of a near-term recovery.<\/p>\n<p>These conditions leave Europe in a comparatively firmer position among Canfor\u2019s offshore markets, even though regional demand remains weak by historical standards.<\/p>\n<p><strong>Pulp losses offset part of the lumber recovery<\/strong><\/p>\n<p>Canfor\u2019s pulp and paper segment moved in the opposite direction from lumber.<\/p>\n<p>The segment recorded an operating loss of CAD 23.1 million, compared with a loss of CAD 16.2 million in the first quarter. Pulp shipments fell 18% to 96,000 tonnes and production declined 17% to 85,000 tonnes, mainly because of scheduled maintenance at the Intercontinental mill.<\/p>\n<p>The average NBSK pulp list price delivered to China declined 4% quarter on quarter to US$658 per tonne. Producer inventories reached 47 days of supply at the end of May, at the upper end of the range generally considered balanced.<\/p>\n<p>Canfor expects additional production capacity, elevated inventories and weak demand to continue pressuring pulp prices during the third quarter.<\/p>\n<p>The company plans to permanently close the Northwood NBSK mill in Prince George by the end of 2026, removing around 300,000 tonnes of annual capacity. It has also announced the closure of the Fox Creek sawmill in Alberta, reducing annual lumber capacity by approximately 120 million board feet.<\/p>\n<p>The second-quarter recovery therefore does not mark the end of Canfor\u2019s capacity adjustments. Higher lumber prices improved current earnings, but the company continues to remove operations where fibre availability, costs or market conditions no longer support long-term production.<\/p>","protected":false},"excerpt":{"rendered":"<p>Canfor\u2019s lumber operations returned to profit in the second quarter of 2026 as higher benchmark prices, stronger production and increased shipments reversed much of the deterioration seen at the beginning of the year. The company reported lumber operating income of &hellip; <a href=\"https:\/\/www.timberindustrynews.com\/ro\/canfor-lumber-operations-return-to-profit-european-markets-regain-balance\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":99442,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[],"class_list":["post-99441","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Canfor lumber operations return to profit; European markets regain balance - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/canfor-lumber-operations-return-to-profit-european-markets-regain-balance\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Canfor lumber operations return to profit; European markets regain balance - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"Canfor\u2019s lumber operations returned to profit in the second quarter of 2026 as higher benchmark prices, stronger production and increased shipments reversed much of the deterioration seen at the beginning of the year. 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