Pallet lumber is rarely the reason a tree gets cut down. Hardwood cants — the low-grade, structurally sound material pallets are made from — are a by-product of sawing logs for flooring, furniture, cabinetry and veneer. That dependency explains most of what happens to pallet prices over a year.
The by-product mechanism
When demand for high-grade hardwood is strong, mills run hard, cant supply is plentiful and new pallet stock is relatively cheap. When furniture and flooring slow down, mills cut less, cants get scarce, and new pallet prices rise even though nobody is building more pallets.
Recycled prices then follow with a lag of roughly four to eight weeks in our market, because buyers substitute toward used stock and core prices firm up in response.
What we watch
- Regional mill run rates and log availability.
- Residential construction and furniture demand, as the upstream driver.
- Core return rates at our own gate — the cleanest leading indicator we have.
- Diesel, because freight is a large share of delivered pallet cost.
- Weather, which removes outdoor-stored stock from the market for weeks at a time.
What that means practically
If you buy new pallets, your price is exposed to an industry you do not participate in. If you buy recycled, your exposure is damped and lagged, which is one of several good reasons to standardise on reclaimed stock where the application allows it.
Either way, a fixed-price quarter is worth asking for. We hold prices firm for fourteen days on spot quotes and for the quarter on standing orders, specifically because planning is worth more to most customers than chasing the bottom of a cycle.
The structural trend underneath
Over sixteen years the direction has been consistent: cores get more valuable, grading gets more important, and the yards that store under cover and grade honestly keep their customers through the tight quarters. None of that is a forecast. It is just what has happened every time the market has tightened since 2009.
Written at the Meeks Blvd yard, St. Louis, and published on February 10, 2026. Markets and specifications move; if a figure here no longer matches what you are seeing, tell us and we will update it. Our model constants live on the Carbon Ledger.
How this was written
Drafted at the grading line from our own weighbridge records, line notes and customer correspondence. Figures quoted as ours are measured; figures quoted from the wider industry are labelled as estimates. Nothing here was written to rank for a search term, and we correct articles rather than quietly deleting them.
- Author
- Yard desk
- Published
- February 10, 2026
- Category
- Industry
- Reviewed
- Annually, with the model constants
- Corrections to
- sales@repalletshop.com
What to do with this
- Check the figures against your own invoices before acting on them.
- Ask us for the underlying scale tickets if you need audit evidence.
- Send the article to whoever owns your pallet spec — most of this is their decision.
- Disagree in writing. Several of these pieces exist because a customer corrected us.
How to cite
Yard desk, “Hardwood supply, sawmills and what the next year looks like”, Repallet Shop, February 10, 2026. repalletshop.com/blog/hardwood-supply-outlook