Canfor Has a Challenging Year Ahead as Lumber Demand and Prices Remain Weak

Canfor is one of the largest softwood lumber producers in the world, with over 6 billion board feet of production capacity in western Canada, the Southeastern United States, and Sweden. Homebuilding and remodeling are the main uses of softwood lumber in North America, although Canfor does sell significant volume in Europe and Asia, with both making up roughly 30% of sales in recent years. As price-takers, Canfor and its peers see dramatic profit variations, depending on the health of housing markets and overall economic conditions.