Softwood lumber prices fall in October
The National Association of Home Builders (NAHB) noted that softwood lumber prices fell 10.3% in October—the largest drop since May 2011—according to the latest Producer Price Index (PPI) from the Bureau of Labor Statistics.
The PPI for softwood lumber has fallen 21.2% since setting the cycle and all-time high in June. Despite the decrease, however, the index currently sits just 4.7% lower than the prior-cycle high set in 2004, the NAHB reported.
OSB has followed a path similar to softwood lumber over the past 3 months and since climbing 38.1% in the first 7 months of 2018, prices have fallen 16.6%. The price index for OSB is now 15.2% and 15.7% higher than it was to start 2018 and 2017.
Residential construction goods input prices increased 0.4% in October and have now risen 7.5% over the last 12 months. The index decreased only twice during that period, by 0.1% and 0.5% in December 2017 and August 2018, respectively. Year-to-date residential construction goods input price increases in 2018 (+5.6) continue to outpace the increase during the same period in 2017 (+2.9%).
Gypsum prices dropped 1.6% in October but the price index for gypsum products is 6.3% higher than it was to start 2018. Consecutive-month increases of 5.4% and 6.1% have been partially offset by 2-month decreases of 3.3% and 1.8%.
Ready-mix concrete prices fell 0.5% in October. After a large price increase in early 2018, prices of ready-mix concrete dropped and have remained essentially unchanged since July.
The PPI for softwood lumber has fallen 21.2% since setting the cycle and all-time high in June. Despite the decrease, however, the index currently sits just 4.7% lower than the prior-cycle high set in 2004, the NAHB reported.
OSB has followed a path similar to softwood lumber over the past 3 months and since climbing 38.1% in the first 7 months of 2018, prices have fallen 16.6%. The price index for OSB is now 15.2% and 15.7% higher than it was to start 2018 and 2017.
Residential construction goods input prices increased 0.4% in October and have now risen 7.5% over the last 12 months. The index decreased only twice during that period, by 0.1% and 0.5% in December 2017 and August 2018, respectively. Year-to-date residential construction goods input price increases in 2018 (+5.6) continue to outpace the increase during the same period in 2017 (+2.9%).
Gypsum prices dropped 1.6% in October but the price index for gypsum products is 6.3% higher than it was to start 2018. Consecutive-month increases of 5.4% and 6.1% have been partially offset by 2-month decreases of 3.3% and 1.8%.
Ready-mix concrete prices fell 0.5% in October. After a large price increase in early 2018, prices of ready-mix concrete dropped and have remained essentially unchanged since July.