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Wood Products Prices Extend Their Descent in July
The Bureau of Labor Statistics (BLS) released the Producer Price Indexes (PPI) for July. Producer prices for finished goods were flat in July after rising 0.8% in June and 0.5% in May. Excluding food and energy, the core index continued its recent stability rising 0.1%. A 0.2% monthly decline in energy prices and flat food prices held the headline index flat despite the 0.1% increase in core prices.
PPIs for softwood lumber and OSB continued the descent that began earlier this year. Softwood lumber prices declined 2.3% from June to July, extending the decline from the recent April peak to 16.6%. However, softwood lumber prices are still 9.9% above prices from one year ago before the sharp run-up in late 2012 and early 2013.
OSB prices declined 12.2% in July, extending the decline from the March peak to 28.4%. OSB prices remain 48.8% above prices prior to the housing recovery that began in 2012.