Norbord CEO Barrie Shineton expects robust demand at its Norbord UK mills to ease in the face of economic uncertainty and customer caution.
Mr Shineton was speaking as Norbord unveiled its third quarter results – showing again that the European operations (mainly Norbord UK mills) – had outperformed their North American cousins.
“In spite of this [slowing demand], UK housebuilders, who are Norbord’s largest customer group, are in good financial shape and remain optimistic about next year,” he said.
“They are well positioned to respond to an expected increase in demand, driven by unprecedented low new home inventory levels.”
The UK mills have again outperformed the company’s North American mills, recording third quarter earnings of C$10m. Lower volumes and higher resin prices were only partially offset by higher panel prices of about 10% on average.
The mills produced at 100% of estimated capacity in the quarter compared to 105% in the prior quarter and 90% a year ago.
Quarter-over-quarter particleboard, MDF and OSB prices increased by 7% and 3% respectively, while OSB eased 2%.
