Crossties

JAN-FEB 2015

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

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TACT US A DVERTISE RTA EVENT CALENDAR S tella-Jones C orp. Wheeler Lumber R ailway Tie A ssociation Nisus Corporation Corporation Nisus MiTek ustries ustries MiTek CROSSTIES • JANUARY/FEBRUARY 2015 2 1 Regional Pricing Trends Graphs are available online at www.rta.org. • Tie production is shown with "green" 4/4 2A Red Oak in a 1 2-month moving average format. This results in mini- mizing monthly deviations, 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 r eporting regions, compiled with permission from the H ardwood Market Report. • The tie trend price line is only a "trend" line. The graph s hows a "composite" number that is a consistent ratio of t he high & low prices reported by HMR for all regions. Thus, the line is o nly representative of trends, not actual pricing. • In the real marketplace for hardwood lumber and ties, prices fluctuate often, some- times 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) Inventory Monthly Production (000) 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 4/4 2A Red Oak Tie Trend Price Line Hardwood Trend Pricing with 4/4 Red Oak Pricing $ 800 $700 $ 600 $500 $400 $300 $200 $ 30 $28 $26 $24 $22 $20 $18 $16 $14 2,400 2.200 2,000 1,800 1,600 1,400 1,200 1,000 800 Total (Avg.) 1,958,858 8,754,498 7,481,166 15,833,000 Total (Avg.) 1,961,194 7,973,392 7,929,885 15,966,000 Total (Avg.) 1,815,507 7,717,673 7,855,800 15,827,466 Total (Avg.) 1,609,113 8,237,439 7,502,500 16,101,000 Eastern Division 328,652 3,096,460 3,010,000 6,070,000 Western Division 1,096,000 4,430,000 3,850,000 7,700,000 Canadian Division 180,345 1,548,921 1,650,000 3,350,000 Total 1,604,997 9,075,381 8,465,000 17,120,000 Eastern Division 305,175 3,042,382 2,943,333 6,023,333 Western Division 1,071,333 4,426,667 3,683,333 7,366,667 Canadian Division 150,211 1,517,213 1,369,008 3,516,667 Total 1,527,716 8,986,262 7,980,667 16,906,667 Source: BNSF, CN, CP, CSX, NS, UP CLASS 1 RR CONSOLIDATED MONTHLY TIE REPORT Class I Inventory Commitments Class I Black Tie Demand Estimate Black Tie Green Tie 6 Month 12 Month US ECONOMIC DATA December 2014 Fourth Quarter 2014 ties - RR INVENTORY/DEMAND 4th Quarter 2013 1st Quarter 2014 2nd Quarter 2014 3rd Quarter 2014 Real US Fed Funds GDP Rate Rate 2.6% 0.08% -2.1% 0.07% 4.6% 0.09% 3.5% 0.09% 0.12% 2.6% 0.10% ties - LONG TERM TRENDS 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 20,000,000 1 8,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8 ,000,000 6,000,000 I nventory Production "Green" 4/4 2A Red Oak Tie Trend

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