West Fraser Benefits From Strong OSB Demand, but Lumber Markets Face Persistent Near-Term Pressure

West Fraser is one of the largest softwood lumber and oriented strand board, or OSB, producers in the world, with significant production capacity in Canada, southeastern United States, and Europe. New construction and remodeling are the main uses of softwood lumber and OSB products in North America. West Fraser is closely tied to the North American market as it accounts for roughly 85% of sales (70% in US and 15% in Canada). As price-takers, West Fraser and its peers see dramatic profit variations depending on the health of housing markets and overall economic conditions.