Canadian Industrial Product Price Index Declines in August — Led by Lower Lumber and Wood Product Prices

Statistics Canada (StatsCan) reported today (9-29-21) that prices for products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI) declined -0.3% month-over-month in August. However, year-over-year (August 2020 to August 2021) they were up 14.3%. Prices of raw materials purchased by manufacturers operating in Canada, as measured by the Raw Materials Price Index (RMPI), decreased -2.4% month over month in August but were 27.7% higher when compared with the same month in 2020.

Of the 21 major commodity groups that comprise the IPPI, 16 were up and 5 were down. Lower prices for lumber and other wood products (-14.2%) were major contributors to the decline in the IPPI. In this commodity group, the price of softwood lumber dropped -22.3%, following a record decline of -38.1% in the previous month. Compared with August 2020, softwood lumber prices fell -14.2%, the first year-over-year decline since September 2019. The abundant wood supply coupled with a slowdown in demand for construction and renovation materials is partly responsible for this decline.

FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.
Original Source:
Industrial product and raw materials price indexes, August 2021