Export of boards and timber from Russia grew by 10%

Despite Western sanctions , the EXPORT of sawn timber from RUSSIA in January-May 2022 increased by 10%, to 11.2 million cubic meters. m. CHINA remains the leader among buyers of Russian boards,which accounted for half of the deliveries

The volume of exports of sawn timber from Russia in January-May 2022 increased by 10%, to 11.2 million cubic meters. m, RBC was told in the press service of Roslesinforga (a division of Rosleskhoz). Russian companies mainly ship abroad boards, beams, sawlogs (raw materials for the production of boards), pulpwood and fankryazh (it is used to make veneer, which is necessary for the manufacture of plywood and other timber).

Almost 70% of the volume of supplies went to "friendly" Asian countries (primarily China and Uzbekistan), supplies to which increased by almost 13% to 7.8 million cubic meters. m. The remaining 30% - on the "unfriendly" states that imposed sanctions against Russia after the start of its military special operation in Ukraine: the EU, Singapore, Japan, SOUTH KOREA and the United States . Exports to these countries increased by only 3.7%, to 3.27 million cubic meters. m.

“There is no sanctions pressure in Siberia and the Far East. Most of the timber cargo continues to go to China, ”Roslesinforg DIRECTOR Pavel Chashchin told RBC through a representative. The only change is that if earlier foreign partners preferred roundwood, then from the beginning of 2022 they switched to sawn timber and finished products in the form of plywood, chipboard, and so on, he added.

The main suppliers of forest products to China are Segezha Group, the largest timber harvester in Russia, controlled by AFK Sistema, Vladimir Butorin’s Ustyansky timber processing complex (operating in the Arkhangelsk region) and Timbertrans (a large processor in the Irkutsk region, in 2021 came under the control of Segezha group). The press service of Segezha declined to comment, RBC sent a request to the ULC.

Who buys lumber from Russia

Over the past 15 years, China has been the key buyer of Russian lumber, Roslesinforg notes. This country accounted for almost half of all exports in January-May of this year - 5.24 million cubic meters. m (plus 18.8% compared to the same period in 2021).

But such a sharp jump came after the fall of last year due to pandemic restrictions: in the first five months of 2021, 4.4 million cubic meters were sold. m against 5.49 million cubic meters. m for the same period in 2020.

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According to Chashchin, a serious increase in supplies from Russia to China, which was quarantined until spring due to the ongoing CORONAVIRUS pandemic, began in March 2022 (plus 19.6%), and in April they increased to 22.6%. In May, the increase was 18%.

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But, according to Chinese customs , imports of lumber from Russia in January-April 2022 increased by only 1.2%, in April there was a decrease of 10.5% (data for May will be available after June 20), indicates Lesprom Network CEO Alexei Bogatyrev. In China, housing construction is in decline, so total lumber imports to that country are down 4%, he says. The discrepancy in the data of Roslesinforg and Chinese customs may be due to the fact that Russian companies indicate China as their destination, but they transport lumber to other directions, the expert suggests. The representative of "Roslesinforga" does not comment on this. RBC sent inquiries to the press service of the FCS and Chinese customs.

Uzbekistan traditionally remains in the second place of buyers, which in January-May 2022 purchased 793.2 thousand cubic meters. m (plus 16.5%). The top five also includes "unfriendly" countries - Singapore (625.9 thousand cubic meters), Estonia (438.5 thousand cubic meters) and Finland (330.4 thousand cubic meters). In Singapore, which has joined Western sanctions against Russia, companies have increased their purchases of lumber by 17 times. According to the division of Rosleskhoz, this happened due to the redistribution of part of the flows of enterprises in Siberia, the North-West and the Volga region, which had not previously worked in this direction or were limited to minimal supplies. The main player in this market was the Syktyvkar sawmill and woodworking plant, which exported 469.1 thousand cubic meters. m. RBC sent a request to the press service of this company.

According to Lesprom Network, the growth in deliveries of products to Singapore may be associated with the use of this country as a transshipment base for deliveries to other countries.

The sale of lumber to the EU countries in January-February 2022 was at the level of the same period last year, Chashchin notes. In March, they increased by 12.3%, and in April - by 2.3 times. But in May, exports to Europe fell by 20.7%. According to Bogatyrev, the growth in deliveries to "unfriendly" countries is associated with the permission of their governments to import products within three months from the date of the introduction of restrictions on previously concluded contracts, but this relief expires on July 9. “Today, the problem with sales is observed in the timber industry regions of the North-Western Federal District,” concludes the HEAD of Roslesinforg.

What are the difficulties with exporting

The ban on the import of forest products from Russia to the European Union came into force on April 8 as part of the fifth package of sanctions, including that it affected wood and wood products. The companies were also forced to stop deliveries due to the fact that European countries stopped letting trucks from Russian transport companies.

The Russian authorities, in turn, decided to impose a ban on the export of timber, raw materials for the production of paper and plywood to "unfriendly" countries, including the United States and Europe. These goods are critically important for the European Union, the Ministry of Industry and Trade noted.

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On April 19, Japan also imposed a ban on the supply of timber from Russia. But, according to the Japanese Ministry of Finance, imports of Russian lumber in January-April 2022 increased by 41%. This country, like Europe, gave time for the supply of products within the framework of already concluded contracts.

Before sanctions were imposed, delivering lumber from the Northwest to Finland could take half an hour by car, and that was a minimal cost, says Bogatyrev. The redirection of exports from Europe to Asia ties it to rail and sea transportation, which were also not designed for additional cargo volumes, the expert explains. According to him, ships are now waiting near overloaded ports for several weeks longer than usual.

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