Canfor expects the North American lumber market to remain weak throughout the rest of this year. According to CEO Don Kayne, “residential construction activity is anticipated to be challenged by ongoing affordability headwinds in the near-term. Demand in the repair and remodeling sector is also projected to trend downwards through the balance of the year.”
Demand and prices in Asia could also remained more or less unchanged in the third quarter. Stable demand in Japan is offset by the ongoing weakness in the Chinese market.
As for Europe, Canfor expects lumber prices to come under pressure in the third quarter as a result of the seasonal slow-down in the DIY sector. At the same time, log prices could rise due to reduced availability.
In the US South, Canfor plans the commissioning of new and modernized sawmills. In British-Columbia, the company is considering further curtailments of production because of the insufficient availability of log wood. Canfor therefore plans to adjust its operations to align with demand and economically available timber supply for the rest of the year 2024.
