In March, the lumber market displayed encouraging signs of recovery, particularly in the intermediate demand sector. Softwood lumber prices saw a notable increase of 1.9%, marking the first uptick since July 2023, when prices surged by 5.3%. This resurgence comes after a prolonged period of decline from July to February.
According to data from the U.S. Bureau of Labor Statistics, while softwood lumber prices experienced a significant 6.8% annual decline, the March uptick suggests a potential reversal of this trend. The hardwood lumber also demonstrated growth, with a 0.6% increase in March and a 1.6% rise over the year. The building paper and board experienced a notable surge, with a significant 2.5% monthly increase and an impressive 13.3% rise on a yearly basis.
The broader Producer Price Index (PPI) for intermediate demand exhibited mixed results, with processed goods decreasing by 0.5% and unprocessed goods falling by 1.9%. However, the overall PPI for final demand modestly increased by 0.2% in March.
