Despite Drop in Softwood Lumber Prices – Overall Construction Materials Cost Increased in October

A deeper look into the U.S. Bureau of Labor Statistics (BLS) October 2020 Consumer Price Index, with a focus specifically on construction materials and with further analysis provided by Yield Pro, reveals that construction materials were up 0.2% from September, seasonally adjusted, and up year-over-year by 4.8%. The surge in softwood lumber prices in late Q2 & Q3 of 2020 appears to have peaked, with October’s data showing a drop in prices. The price for plywood products, however, were up again in October. When compared to April 2020 prices, October 2020 prices for softwood lumber were up 42% while plywood prices were up 81%. CME Lumber Futures are currently well below their September highs but appear to have found a trading level at approximately 50% above prices levels early in the year. Other basic construction materials also increased in October.

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.