STOCKHOLM, March 31, 2021 / PRNewswire / – China is the world’s largest importer of softwood and hardwood logs, and for many decades, Russia has been a major supplier of logs to them. This relationship could change in 2022 if Russia is implementing their proposal to ban exports of valuable softwood logs and hardwood logs, while also introducing export taxes on green timber. All of these policy changes are designed to encourage increased domestic production of higher value forest products.
The Russian parliament has yet to announce the final legislative proclamation, so it’s unclear whether there will be a full or phased ban, a significant export tax, or even the possibility of a monopoly. Export State. However, a signal has been sent to the market that Russia will no longer be a major supplier of softwood and hardwood logs. A consequence of this decision is that Chinese timber manufacturers will have to explore new areas of long-term log supply.
In 2020, China imported nearly 6.5 million m3 newspapers from Russia, mainly coniferous species. Trade has been significantly lower than any year over the past two decades. However, Russia was still the largest supplier of hardwood logs China in 2020 (larger than any other source of temperate or tropical logs) and the third largest supplier of softwood logs.
It is crucial to keep in mind that China went from supplying newspapers to Russia to European suppliers in recent years as insect infested wood in central Europe has been in temporary abundance. From 2018 to 2020, imports of softwood logs from Europe increased by 1.3 million m3 at 12.3 million m3, while the logs supplied by Russia increased from 7.8 million m3 at 4.2 million m3. However, shipments of Europe are not sustainable in the long term. According to the study just published by consulting firms Wood Resources International and O’Kelly Acumen (Russian log export ban in 2022 – Implications for the global forest industry), China should source saw logs from Oceania, Europe, and the United States in the short term. In the longer term, the study predicts that China is likely to shift more from importing logs to lumber, thus creating opportunities for lumber manufacturers, mainly in Europe and Russia, to increase shipments to this growing market.
The above excerpt is taken from the recently published Focus report “Export ban on logs to Russia in 2022 – Implications for the global forest industry“, published by Wood Resources International LLC and O’Kelly Acumen. For more information on the study or to inquire about purchasing the 60-page report in easy-to-read slide format, please contact either Hakan Ekstrom ([emailÂ protected]) Where Glen o’kelly ([emailÂ protected]). A table of contents for the report is available on our website. Click here!
Wood Resources International LLC
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SOURCE Wood Resources International LLC