Crossties

JUL-AUG 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 • JULY/AUGUST 2015 25 Regional Pricing Trends Graphs are available online at www.rta.org. • Tie production is shown with "green" 4/4 2A Red Oak in a 12-month moving average f ormat. This results in mini- mizing monthly deviations, more clearly illustrating l ong-term trends. • "Green" 4/4 2A Red Oak is s ometimes considered a benchmark to compare historical tie price move- m ents. 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 o nly a "trend" line. The graph shows 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, p rices fluctuate often, some- times significantly. I nformation 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 Jan-15 4/4 2A Red Oak Tie Trend Price Line H ardwood 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.) 1,609,113 8,237,439 7,502,500 16,101,000 Total (Avg.) 1,527,716 8,986,262 7,980,667 16,906,667 Total (Avg.) 1,541,921 8,798,554 8,970,000 17,466,666 Total (Avg.) 1,313,239 8,805,596 8,571,666 17,160,000 Eastern Division 340,664 3,463,701 3,080,000 6,060,000 Western Division 789,000 4,400,000 3,850,000 7,700,000 Canadian Division 247,628 874,193 1,700,000 3,550,000 Total 1,377,292 8,737,894 8,630,000 17,310,000 Eastern Division 257,253 3,342,435 2,985,000 5,890,000 Western Division 765,000 4,400,000 3,850,000 7,700,000 Canadian Division 192,752 999,895 1,500,000 3,350,000 Total 1,215,005 8,742,330 8,335,000 16,940,000 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 May 2015 June 2015 ties - RR INVENTORY/DEMAND 4th Quarter 2014 1st Quarter 2015 2nd Quarter 2015 3rd Quarter 2014 Real US Fed Funds GDP Rate Rate 5.0% 0.09% 2.2% 0.10% 0.6% 0.11% 2.3% 0.12% 0.12% 0.13% ties - LONG TERM TRENDS 2 0,000,000 1 8,000,000 1 6,000,000 1 4,000,000 1 2,000,000 1 0,000,000 8 ,000,000 6 ,000,000 I nventory Production "Green" 4/4 2A Red Oak Tie Trend 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

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