Investor Presentaiton
Demand Drivers: Supply / Demand Dynamics
1
Will Positively Benefit the Industry
WFP
Growing demand from U.S. and Asian markets and reduced supply from
traditional sources is expected to benefit the industry long-term
Housing Starts (North American and Lumber Export Equivalent) vs. Western SPF Lumber Pricing
Housing Starts (MM)
3.5
3.0-
2.5
2.0
1.5
1.0-
0.5
Average NA Housing Starts
(since 1990) = 1.5MM
550
450
350
250
150
US$ per Mfbm
0.0
50
2004A 2005A 2006A 2007A 2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018A 2019A 2020E
2021E
2022E 2023E 2024E
U.S. Housing Starts
Canada Housing Starts
NA Lumber Exports (Housing Starts Equivalent)
KD SPF 2x4 2+Btr (US$) (Actual)
KD SPF 2x4 2+Btr (US$) (FEA Projections)
Source: Forest Economic Advisors (May 2020); Western Forest Products
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