Statistics Canada (StatsCan) is reporting that in March, the Industrial Product Price index (IPPI) increased 1.6% month-over-month and 10% year-over-year. This marks the fourth consecutive monthly increases in the IPPI. Excluding energy and petroleum products, the IPPI was up 1.3%. Among the 21 major commodity groups 14 were up, 6 were down, and 1 was unchanged. Among the major commodity groups, the lumber and other wood products category contributed the most to the gain in the IPPI, up 10.2% from February and up 68.2% from March 2020. Softwood lumber (+11.9%), veneer and plywood (+20.1%), and reconstituted wood products (which include medium-density fiberboard [MDF]) (+11.6%) all increased. The price of Canadian lumber is influenced significantly by housing demand in the United States, where, seasonally adjusted residential housing starts rose 19.4% in March compared with February. In Canada, seasonally adjusted housing starts were up 21.6% in March.
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.
Industrial product and raw materials price indexes, March 2021