Softwood lumber prices fell 3.0% in November the second consecutive decrease for the index to the latest Producer Price Index (PPI) released by the Bureau of Labor Statistics. The producer price index for softwood lumber has fallen 23.6% (not seasonally adjusted) since setting cycle and all-time highs in June (see below). After the decrease, the index level is 9.6% lower than the prior-cycle high set in 2004.
The final demand price index for OSB has followed a path similar to—but steeper than—that of softwood lumber over the last four months (see below). After November’s 13.7% decrease, OSB prices have declined 28.0% over that period (not seasonally adjusted), while softwood lumber final demand prices have declined a more modest 21.7%.
The final demand producer price index for OSB is now 0.6% lower than it was in January 2018.
Read more at the National Association of Homebuilders’ Eye on Housing blog.