Interfor (IFP) is cutting its lumber production by 8% as demand continues to slump due to a slowing North American housing market.
The Burnaby, British Columbia forest products company said the production cut amounts to about 100 million board feet of lumber.
Interfor said it plans to return to its normal production schedule in April but will monitor market conditions and adjust going forward.
Interfor is the latest forest products company to cutback its lumber production as rising interest rates cool the housing markets in Canada and the U.S.
The North American lumber market also experienced supply and demand shocks due to the COVID-19 pandemic in 2020 and 2021.
West Fraser Timber (WFG) recently announced that it plans to indefinitely curtail its lumber production due to high fibre costs and softening lumber demand.
Interfor’s stock has declined 52% in the last year to $21.28 per share.
