US Building Materials Prices Lower: Nov 2018

US Building Materials Prices Lower: Nov 2018

Softwood lumber prices fell -3% in November the second consecutive decrease for the index to the latest US Producer Price Index (PPI) released by the US Bureau of Labor Statistics Tuesday, said the US National Association of Home Builders. The producer price index for softwood lumber has fallen -23.6% (not seasonally adjusted) since setting cycle and all-time highs in June 2018. After the decrease, the index level is -9.6% lower than the prior-cycle high set in 2004.

SOURCE: NAHB Eye on Housing

Residential construction goods input prices in the US decreased -1.7% in November, just the third decrease—and by far the largest—over the past 12 months. The other decreases, -0.1% and -0.5%, came in December 2017 and August 2018, respectively. The decrease brought parity between year-to-date (YTD) changes in 2017 and 2018 (+3.8%), marking the first time this year that YTD increases in 2018 have not outpaced those of 2017.

The final demand price index for Oriented Strand Board has followed a path similar to—but steeper than—that of softwood lumber over the last four months. After November’s -13.7% decrease, OSB prices have declined -28 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.

SOURCE: Madison’s Lumber Reporter www.madisonsreport.com
SOURCE: Madison’s Lumber Reporter www.madisonsreport.com

Prices of gypsum products and ready-mix concrete fell by -2.9% and -0.3%, respectively, in November. The price index for gypsum products remains +3.2% higher than it was to start 2018, said the US Bureau of Labor Statistics Tuesday.

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