Interfor to Cut Lumber Production Amid Weak Market Conditions

2025-09-04 companies

Burnaby, Thursday, 4 September 2025.
Interfor Corporation is reducing its lumber production by 145 million board feet due to poor market conditions, impacting both Canadian and U.S. operations.

Significant Curtailments in Production

Interfor Corporation (TSX: IFP) has announced a substantial reduction in its lumber production by approximately 145 million board feet between September and December 2025. This represents around 12% of its usual operating capacity. These curtailments are set to impact both Canadian and U.S. operations equally, reflecting the company’s strategic response to persistently weak market conditions and ongoing economic uncertainties [1][2].

Operational Adjustments

The production curtailments will be achieved through a combination of reduced operating hours, prolonged holiday breaks, reconfigured shifting schedules, and extended maintenance shutdowns. These measures are aimed at aligning production with current market demands, which have seen significant downturns due to factors such as higher duties and seasonal slowdowns [1][4].

Market Context and Implications

The decision comes amid a broader context of declining lumber sales, influenced by soft demand and increased duties, notably a 35% softwood lumber duty impacting Canadian wood products. This has contributed to a decrease in lumber prices, with Madison’s Lumber Prices Index reporting a drop to US$503 per thousand board feet as of August 29, 2025, down from US$536 the previous week [3][5].

Strategic Monitoring and Future Outlook

Interfor has stated its commitment to closely monitor market conditions and adjust its production plans as necessary. This proactive stance is crucial as the construction industry continues to grapple with uncertainties, including fluctuating economic conditions and evolving market dynamics. The company’s decision to curtail production is a strategic move to maintain sustainability and operational efficiency [1][2].

Sources

lumber production Interfor Corporation