The company expects near-term demand weakness in its European EWP segment but reiterates 2023 OSB shipments guidance of moderately above 2022 levels.

Group Q2 adjusted EBITDA was US$80m (2022 Q2: US$58m).

The North American EWP segment recorded adjusted EBITDA of US$126m and the European EWP business recorded US$19m.

West Fraser says the seasonally adjusted annualized rate of US housing starts was 1.43 million units in June 2023, with permits issued of 1.44 million units, according to the US Census Bureau. 

While there were near-term headwinds to new home construction earlier in the year, owing in large part to the upward reset in interest rates and the impact on housing affordability, unemployment remains relatively low in the US and central bankers across North America have indicated that the current rate hiking cycle may be nearing an end.