Crossties

JUL-AUG 2018

Crossties is published for users and producers of treated wood crossties.

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RTA EVENT CALENDAR Green Red Oak 4/4 2A Ties 7x9 - Green Trend Production Inventory CONTACT US RTA EVENT CALENDAR CONTACT US ADVERTISE Stella-Jones Corp. Railway Tie Association Wheeler Lumber Nisus Corporation MiTek Industries CROSSTIES • JULY/AUGUST 2018 25 Regional Pricing Trends Graphs are available online at www.rta.org. • Tie production and inventory is shown in a 12-month moving average format. This results in minimizing monthly devia- tions, more clearly illustrating long-term trends. • "Green" 4/4 2A Red Oak is sometimes considered a benchmark to compare historical tie price move- ments. This data represents a trend line developed from composite data of from the reporting regions, compiled with permission from the Hardwood Market Report. • The tie trend price line is only a "trend" line. The graph shows a "composite" number that is a consistent ratio of the high & low prices reported by HMR for all regions. Thus, the line is only representative of trends, not actual pricing. • I n the real marketplace for hardwood lumber and ties, prices fluctuate often, sometimes significantly. Information presented in these graphs should be considered in that light. For the most current pricing available, reported weekly, we encourage you to sub- scribe to: Hardwood Market Report (901) 767-9126. Crosstie Production/Inventory/Hardwood Trend Pricing with 4/4 2A RED OAK Pricing* NOTES: Crosstie Production and Inventory (12 month moving averages) Monthly Production (000) Inventory (000) 4/4 2A Red Oak Tie Trend Price Line ties - RR INVENTORY/DEMAND ties - LONG TERM TRENDS $14 $16 $18 $20 $22 $24 $26 $28 $30 $32 $200 $300 $400 $500 $600 $700 $800 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 22,000 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Inventory Production "Green" 4/4 2A Red Oak Tie Trend CLASS 1 RR CONSOLIDATED MONTHLY TIE REPORT US ECONOMIC DATA Source: BNSF, CN, CP, CSX, NS, UP Class I Inventory Commitments Class I Black Tie Demand Estimate Real US GDP Rate Fed Funds Rate Black Tie Green Tie 6 Month 12 Month 3rd Quarter 2017 Total (Avg.) 2,551,872 9,697,260 7,176,667 15,686,667 3.3% 1.15% 4th Quarter 2017 Total (Avg.) 2,587,937 9,721,390 7,427,000 15,744,000 2.6% 1.20% 1 st Quarter 2018 Total (Avg.) 2,566,683 9,128,203 7,646,333 15,943,333 2.2% 1.45% 2nd Quarter 2018 Total (Avg.) 2,914,291 9,946,370 7,694,667 15,589,333 4.1% 1.74% May 2018 Eastern Division 905,832 1,758,083 2,562,500 5,085,000 1.70% Western Division 1,238,000 5,370,000 3,650,000 7,300,000 Canadian Division 189,452 1,247,573 1,700,000 3,550,000 Total 2,333,284 8,375,656 7,912,500 15,935,000 June 2018 Eastern Division 815,070 1,663,679 2,562,500 5,075,000 1.82% Western Division 1,278,000 5,200,000 3,650,000 7,300,000 Canadian Division 117,593 1,140,807 1,350,000 3,550,000 Total 2,210,663 8,004,486 7,562,500 15,925,000 Hardwood Trend Pricing with 4/4 Red Oak Pricing

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