Toilet paper lifts Tembec

ForestrY • Tembec Inc. is joining the revival among Canadian forest-product stocks as Chinese demand for bathroom tissue lifts pulp prices and lumber surges on a U.S. housing rebound.

The Montreal-based maker of pulp, softwood, hardwood and pine lumber, rose the most in almost a year Tuesday after producers, including Fibria Celulose SA, the world’s largest maker of hardwood pulp, raised prices for the raw material used in paper and tissue.

“Underlying all this are huge increases in Chinese demand for tissue paper that’s goosing demand for hardwood and softwood pulp,” Brian McClay, founder of Brian McClay & Associates Inc., a Mpulpindustry consultancy, said.