The National Association of Home Builders notes that OSB prices climbed 2.5% in September, continuing a 7-month trend that has the commodity at its highest price since June 2013. Since February, monthly increases have averaged 3.2%, pushing prices up by a cumulative 25%. The report is based on the Latest Producer Price Index (PPI) release by the Bureau of Labor Statistics.
In addition, although the price of ready-mix concrete fell marginally in September, the long-term trend remains concerning. Monthly increases have averaged 0.3% over the last five years as the price of ready-mix concrete has steadily risen by roughly 20%. While gypsum prices picked up (+0.1%), the prices of softwood lumber and steel mill products fell by 1.4% and 0.5%, respectively.
Nearly one-third of the rise in prices for goods was attributable to 5.3% jump in gasoline prices. The indexes for other energy goods such as diesel fuel, jet fuel, and residential natural gas also moved higher.
Source: National Association of Home Builders