USA – West Fraser OSB business in Europe is seeing improved demand in 2024, while MDF and particleboard are experiencing softer demand, according to the company’s 2Q-2024 update.

“While inflation appears stable, risks such as high interest rates, geopolitical developments, and lingering inflationary effects may negatively impact future demand for our panel products in the UK and Europe,” West Fraser stated.

“Despite these challenges, we are confident in our ability to navigate the current environment and seize long-term growth opportunities.”

Global sales, including lumber, totaled USD 1.70 billion, with adjusted EBITDA of USD 272 million. The European engineered wood products segment reported adjusted EBITDA of USD 6 million, while the North American segment posted USD 308 million.

In Europe, soft near-term demand for panel products is expected, with shipments of MDF, particleboard, and OSB in 2024 anticipated to be similar to or slightly better than 2023 levels. Input costs for the European segment, including energy and resin, are expected to stabilize but remain high.

In North America, 2024 OSB shipments are expected to align with 2023 levels. The Allendale OSB mill in South Carolina is progressing, with a ramp-up period of up to three years to reach production targets.

“Assuming no deterioration in market conditions and no additional delays for ongoing projects, we anticipate investing approximately USD 450 million to USD 550 million in 2024,” the company added.