In 2023, the plywood export of Russia took a turn, with the single export soaring by 1119%
Since this year, the production and export growth of plywood in Russia have both slowed down. According to the data, from January to October, the output of plywood in Russia reached 2.785 million cubic meters, down 26.7% year on year; Among them, only in October, its plywood production decreased by 37% year-on-year.
In a single month, Russia’s plywood supply to the international market increased by 13% in September; In October, the export volume increased by 2.5% to 117000 cubic meters. It is mainly exported to China, the United States and Türkiye.
Exports to China
Let’s first look at the plywood export of Russia to China this year. Since 2014, the plywood exported from Russia to China has maintained an upward trend. However, in 2020-2021, it showed a downward trend, falling by 6% and 7% respectively.
The export of plywood in Russia turned around, with a single export soaring by 1119%
This situation is different this year. According to the data, compared with the same period last year, Russia’s plywood exports to China increased by 45% to 83000 cubic meters in the first three quarters of this year. On the whole, Russia’s plywood exports to China have moved from slowing down to recovery, but as for when to recover to the pre-epidemic level, it may depend on the recovery of China’s plywood market demand. According to the current trend, Russia’s plywood exports to China will continue to grow next year.
Exports to the United States
According to the export situation in previous years, the United States and China are also the main importing countries of Russian plywood. However, since April this year, the United States has cancelled the most-favoured-nation treatment (MFN) in trade with Russia and Belarus, resulting in an increase in the average tariff of products exported from these two countries to the United States from 3.3% to 32.3%. Among them, the average tariff of plywood reached 40-50%.
High tariffs limit the export of Russian plywood to the United States. Data show that in the first ten months of this year, Russian plywood exports to the United States fell by 21%. Among them, in October alone, Russia’s plywood exports to the United States fell by 29% year-on-year to 52100 cubic meters. It can be seen that Russia’s plywood to the United States will not recover until the United States reclassifies Russia as the most-favoured-nation treatment.
The export of plywood in Russia turned around, with a single export soaring by 1119%
(Plywood exported from Russia to the United States from 2021-2022)
Export to Türkiye
After the closure of the European and American markets, in addition to increasing exports to China, the Middle East countries, mainly Türkiye, have also become the markets that Russia plans to further develop. In October, Russia’s plywood export to Türkiye reached 76900 cubic meters, up 1119% year on year. However, the average price decreased by 27% year-on-year to US $617 per cubic meter; 8% month-on-month.
This increase in exports has obviously brought a turnaround for the export of plywood from Russia. At the same time, it also shows the potential of the Middle East market and lays the foundation for Russia to expand the market share of plywood in the Middle East in the future.
In summary, the reduction of international market share once caused the overcapacity problem in the Russian plywood market, which also affected the entire industrial chain. Now the turnaround in the Middle East market will greatly boost the confidence of the Russian plywood market, and is expected to become another major import region of timber and wood products in Russia.
