A serious shortage of resin for the production of plywood arose in Russia

Kommersant, a daily newspaper, reports that some Russian plywood producers may cease operations or significantly raise prices for their products. The newspaper explains that the situation was caused by the shortage of a key component for the production of plywood: phenol formaldehyde resin.

According to Kommersant, the Association of Furniture and Woodworking Enterprises asked the Ministry of Industry and Trade and the Chamber of Commerce and Industry of the Russian Federation to address the problems in the supplies of phenol (the main component for the production of phenol formaldehyde resin) to the domestic market by limiting its export. “If the situation does not change, most enterprises in the sector may cease operations by mid-May”, the association emphasizes.

Sveza, the largest producer of Russian plywood, also confirmed the shortage of phenolic resins on the market that became especially noticeable in April 2023. Timur Irtuganov, General Director of the Association, believes that the government should act as a regulator in the current circumstances and ensure the availability of the necessary products, first of all, for the domestic market. The Ministry of Industry and Trade reports that producers of phenol and acetone operated stably in January-March, products were supplied at the request of clients under signed contracts. In early April, it was decided to ramp up the output of phenol, the decision was extended for May as well.