Northern Comments

PALLET LUMBER, CANTS, TIES, & BOARD ROAD

Demand for wood pallets typically parallels trends in the broader economy. As noted in the opening comments, the US economy gained momentum from the second quarter of 2025 onward. However, since hardwoods are losing market share to softwoods in the wood pallet sector, the hardwood industry has derived almost no benefit from economic expansion. Prices for Northern pallet cants and pallet lumber have firmed of late, but that is a function of historically low hardwood production. Increases made in the last two weeks have all the published figures in order.

In preparation for potential mergers, some Class I railroads are curbing capital expenditures, including black crosstie purchases. In turn, many treating facilities are scaling back green tie purchases. Volumes and prices have been affected. The Northern crosstie range was lowered last week and is reflective of current transactional data.

This week brought no substantive changes in markets for Northern board road, with activity limited and prices flat.