Sanctions

October 4, 2022

Substitutes for Russian birch plywood in the European market

Global plywood production was around 105 million m3 in 2021. The Asia-Pacific region is the biggest plywood producer, followed by North America. Also, consumption is concentrated in these areas. Birch plywood accounts for only 5% of the global plywood production volume but its consumption has grown in the last decade reaching almost 5 million m3 in 2020, driven by increased demand in the high-end-use segments. Europe remains the largest consumer of birch plywood, with an estimated 45% of total global consumption. Russia, with their production of about 3,6 million m3 of birch plywood (2020), has been the biggest single provider of high-quality certified birch plywood products to demanding industrial end-use segments. With the sanctions on Russia, about 1.5 million m3 of birch plywood is missing from the European market, leading traders and end-users to look for quality... Continue reading →

October 3, 2022

Russian timber evades US sanctions via Vietnam and China, says environmental group

Russian birch wood continues to flow to US consumers disguised as Asian products, despite US economic sanctions against Russia over its invasion of Ukraine, a new report says. The Environmental Investigation Agency (EIA), a non-profit watchdog group based in Britain, has found that most of the birch products currently exported from Vietnam to the United States come from Russia. According to Vietnam customs data, about 40,000 cubic meters of birch wood is shipped monthly from Russia and China to Vietnam where it is assembled into furniture and plywood. These chairs and bed frames will hit the shelves of major U.S. retailers, the EIA said in a report. The group’s researchers spoke to five Chinese companies that account for 60 percent of China’s birch veneer exports to Vietnam and concluded that more than 90 percent of their birch comes from Russia. A Chinese lumber mill owner told... Continue reading →

July 7, 2022

Russian timber exporters seek new markets in Middle East and Asia

The Russian Ministry of Industry and Trade recently told local media that the Middle East, Asia and Latin American countries are expected to become promising export markets for Russian timber. The Russian Ministry of Industry and Trade said that Russian wood processing enterprises are actively adjusting the import and export logistics process, and the Ministry of Industry and Trade and the Russian Commercial Representative Offices abroad will provide assistance to Russian enterprises in developing markets. According to statistics from the Russian Federal Forestry Service, from January to May 2022, Russian timber exports reached 11.2 million cubic meters, an increase of 10%. Among them, nearly 70% were exported to China, Uzbekistan and other Asian countries friendly to Russia, with a total export volume of 7.8 million cubic meters, an increase of 13% year-on-year; the remaining 30%... Continue reading →

October 3, 2022

Russian timber evades US sanctions via Vietnam and China, says environmental group

Russian birch wood continues to flow to US consumers disguised as Asian products, despite US economic sanctions against Russia over its invasion of Ukraine, a new report says. The Environmental Investigation Agency (EIA), a non-profit watchdog group based in Britain, has found that most of the birch products currently exported from Vietnam to the United States come from Russia. According to Vietnam customs data, about 40,000 cubic meters of birch wood is shipped monthly from Russia and China to Vietnam where it is assembled into furniture and plywood. These chairs and bed frames will hit the shelves of major U.S. retailers, the EIA said in a report. The group’s researchers spoke to five Chinese companies that account for 60 percent of China’s birch veneer exports to Vietnam and concluded that more than 90 percent of their birch comes from Russia. A Chinese lumber mill owner told... Continue reading →

June 21, 2022

Russian sawmills hit by sanctions

Already in May 2022, Russian sawmilling companies were able to largely feel the impact of sanctions and restrictions on their activities. Thus, market participants note that shipments to Europe, if they occur, are in limited volumes, either under the obligations of previously concluded contracts or exclusive specifications. At the same time, Europe also notes the impact of the lack of Russian products and talks about a growing shortage. Alternative sales markets for Russia, namely Egypt and China, are also experiencing a number of problems. So, the Egyptian market for Russia is now determined not by the price, but by the possibility of paying for deliveries, because. there are difficulties in obtaining a letter of credit in the country. In China, at the moment there is a high level of inventory and a low level of demand, which, among other things, is constrained by quarantine... Continue reading →

June 23, 2022

Sanctions on Russia negatively impact Australia’s construction industry

With supplies of key laminated veneered lumber (LVL) and engineered wood products (EWPs) imported from Russia and Belarus, which accounted for 40-50% of these construction products, no longer available due to sanctions imposed on both countries for Russia’s invasion of Ukraine, Australia’s tight timber markets are now facing a severe shortfall of products. The shortage is already starting to impact concrete constructions for multi residential, high-rise, commercial buildings, and some civil works, as well as i-joist beams and timber flooring systems. Previously, Australia imported LVL and EWP from EU countries. However, the EU has also placed sanctions, restrictions, and tariffs on Russian and Belarusian timbers, and therefore are now using their timber supplies and production capabilities to meet EU members’ internal needs. This has prompted Australian timber industry... Continue reading →

October 4, 2022

Substitutes for Russian birch plywood in the European market

Global plywood production was around 105 million m3 in 2021. The Asia-Pacific region is the biggest plywood producer, followed by North America. Also, consumption is concentrated in these areas. Birch plywood accounts for only 5% of the global plywood production volume but its consumption has grown in the last decade reaching almost 5 million m3 in 2020, driven by increased demand in the high-end-use segments. Europe remains the largest consumer of birch plywood, with an estimated 45% of total global consumption. Russia, with their production of about 3,6 million m3 of birch plywood (2020), has been the biggest single provider of high-quality certified birch plywood products to demanding industrial end-use segments. With the sanctions on Russia, about 1.5 million m3 of birch plywood is missing from the European market, leading traders and end-users to look for quality... Continue reading →