Prices for lumber and other wood products in Canada fell 4.4% month over month in April, the steepest decline for the commodity group since January 2023 (-4.8%), according to Statistics Canada. The drop was led by softwood lumber, which saw an 11.1% price decrease, its sharpest monthly fall since June 2022 (-29.4%). The decline was driven by low buyer activity, as concerns over potential tariffs discouraged inventory growth.
Softwood lumber was the main driver of a broader decline in the Industrial Product Price Index (IPPI), which fell 0.8% in April after six consecutive monthly increases. Excluding energy and petroleum products, the IPPI still dropped 0.5%. The Canadian dollar’s 2.7% appreciation against the U.S. dollar also contributed to price pressures; without this exchange rate shift, the IPPI would have declined just 0.5%.
Other industrial materials also saw notable price declines. Primary non-ferrous metal product prices fell 2.8%, with unwrought aluminum down 7.4% and unwrought copper dropping 8.1%. In contrast, unwrought gold prices rose 5.0%, reflecting continued investor demand. Year over year, the IPPI rose 2.0%, driven by significant gains in unwrought gold (+40.9%) and fresh and frozen beef and veal (+13.9%).
On the raw materials side, the Raw Materials Price Index (RMPI) declined 3.0% month over month in April, marking the largest monthly downturn since September 2024. Year over year, the RMPI fell 3.6%. Crude energy products dropped 8.1% due to a 9.4% decrease in conventional crude oil prices. Meanwhile, prices for metal ores and concentrates declined 1.5% despite a 5.2% increase in gold ores.
