Norbord cashing in on OSB surge
July 25, 2016 - Toronto-based Norbord Inc. is positioned to profit from the rise in the OSB benchmark price after years of carefully building its presence in the OSB space.
According to a feature in the Globe & Mail, North American OSB prices in the first quarter of 2016 were 17 per cent higher than last year. That, and Norbord's acquisitions in the OSB sector position it for solid growth and profitability after years of challenges.
Chris Damas, an analyst and editor of BCMI Report, says the benchmark OSB price is now in the range of $306 (U.S.) per thousand square feet, well above the $229 15-year average.
Once a diversified forestry company, Norbord shed assets over the years to focus on OSB. Now boasting annual sales in the $1.5-billion range and a market capitalization of about $2.4-billion (Canadian), it bills itself as the world’s largest producer of OSB.
Read the complete feature here.