US Producer Prices: December 2015 - Madison's Lumber Reporter

In the US, The Bureau of Labor Statistics (BLS) released the Producer Price Indexes (PPI) for December Friday. Inflation in prices received by producers (prior to sales to consumers) declined 0.2 per cent in December based on declining energy prices. Prices for goods declined 0.7 per cent, but excluding food and energy, rose 0.1 per cent. Prices for services rose 0.1 per cent.

Producer Prices, US

Softwood lumber prices moved lower in December. Prices have trended down since mid-2014. Expiration of the US-Canadian Softwood Lumber Agreement (SLA) in October can be expected to keep supply in line with increasing demand from the ongoing housing recovery. We expect no sharp movement in prices and a continuation of the modest downward trend in the coming year.

Screen Shot 2016-01-19 at 9.34.18 AM

OSB prices rose in December adding to gains since mid-2015. A rebalancing of supply, demand and productive capacity is expected to keep prices in the current range going forward.

Gypsum prices continued to slide in December from sharp increases in January and February, following the pattern that prevailed in the prior two years. Previously announced price in- creases from major gypsum producers (gypsum) are distributed more evenly through the year making the outlook for gypsum prices uncertain.