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Housing’s fall trips lumber prices and output

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Sunday, July 01, 2007

After a peak year in 2005, the number of permits issued for new housing  units declined nearly 15% nationwide in 2006, while in Oregon they declined almost 11%. Meanwhile, lumber prices have also been falling: In May 2007, Random Lengths’ framing composite price index was down to $287 per thousand board feet after topping $470 back in August 2004. Lumber mills have responded to the slackening demand for their products with a 9% decrease in Western softwood lumber production during 2006, following two years of significant expansion.

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