Page 22 - BB_Dec_2018SMALL

Softwood Lumber

Price Decline Largest

in Seven Years

Softwood lumber prices fell 10.3% in
October—the largest drop since May
2011—according to the latest Producer
Price Index (PPI) release by the Bureau
of Labor Statistics. The producer price
index for softwood lumber has fallen
21.2% since setting the cycle and all-time
high in June (see below). Even after the
decrease, however, the index currently
sits just 4.7% lower than the prior-cycle
high set in 2004.

The final demand price index for OSB
has followed a path similar to that of
softwood lumber over the last three
months.

Since climbing 38.1% in the first seven
months of 2018, OSB 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, respectively.

Residential construction goods input
prices increased 0.4% in October
and have now risen 7.5% over the last
twelve 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%).

22 DECEMBER 2018 | GREATER SAN ANTONIO BUILDERS ASSOCIATION