BURNABY, British Columbia — Interfor Corp. recorded a third quarter of 2024 net loss of $105.7 million. It was the eighth consecutive quarter that the forest products company posted a net loss. It last reported a net profit -- $3.5 million -- for the third quarter of 2022.

The company noted lumber prices continue to reflect an imbalance of lumber supply and demand, with demand continuing to be impacted by the elevated interest rate environment and ongoing economic uncertainty. Lumber prices decreased during the third quarter in which Interfor’s average selling price was $570 per mfbm, down $32 per mfbm versus the second quarter of this year.

In response to persistently weak lumber market conditions, on August 19, Interfor announced the indefinite curtailment of operations at its sawmills in Meldrim, Georgia, and Summerville, South Carolina, which have a combined annual capacity of 330 million board feet.

Additionally, on Oct. 16, Interfor announced plans to exit its operations in Quebec, including the sale of its three manufacturing facilities and the closure of its Montreal corporate office. The Val-d’Or and Matagami sawmills have a combined lumber production capacity of 255 million board feet per year, representing approximately 5% of Interfor’s total company-wide capacity.

Interfor also reported that it has paid cumulative softwood duties of US$579.6 million as of Sept. 30 in the ongoing antidumping dispute with the United States.

Interfor said it expects that over the mid-term, lumber markets will continue to benefit from favorable underlying supply and demand fundamentals. Positive demand factors include the advanced age of the U.S. housing stock, a shortage of available housing and various demographic factors, while growth in lumber supply is expected to be limited by extended capital project completion and ramp-up timelines, labor availability and constrained global fiber availability.

The company added that its strategy of maintaining a diversified portfolio of operations in multiple regions allows the Company to both reduce risk and maximize returns on capital over the business cycle. In the event of a sustained lumber market downturn, Interfor said it maintains flexibility to significantly reduce capital expenditures and working capital levels, and to proactively adjust its lumber production to match demand.