Statistics Canada (StatsCan) reported today (9-19-22) that the Industrial Product Price Index (IPPI) fell 1.2% month-over-month in August, its third consecutive monthly drop. Year-over-year the IPPI increased 10.6%. Prices of raw materials purchased by manufactures operating in Canada, as measured by the Raw Materials Price Index (RMPI), declined 4.2% on a monthly basis in August but increased 17.6% year-over-year.
The price of softwood lumber declined 7.5% in August, continuing the downward trend that started in April of this year. In August, prices were up 10.2% compared with the same month in 2021 and were 68.9% higher than in January 2020. A slowing in the U.S. housing market and higher mortgage interest rates both played a role in the monthly decrease. In July, US housing starts dropped 9.6%, the lowest level since February 2021.
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.