WhatWood: Import substitution has changed the OSB market in Russia in 2015

The situation on the Russian OSB market has changed dramatically in the second half of 2014 – 2015, as stated in the third edition of the analytical review “OSB market in Russia” published by WhatWood agency in March 2016. DOK Kalevala and Kronospan-Egoryevsk mills increased their capacities, deliveries from Belarus started from Kronospan-Mogilev mill, and the sharp falling of the rouble exchange rate almost closed the possibility of importing from far-abroad countries. Therefore, this forest industry sector has seen the import substitution in 2015 that changed the whole market structure.

Imports of OSB to Russia in 2015 (excluding deliveries from Belarus) decreased almost fivefold to 107,000 m3. Import prices declined markedly – in particular, the average price of deliveries from Romania fell to $226 by December 2015 after a peak of $350 in October 2013. Supplies from Canada and China almost stopped; shipments from the Romanian mills of Egger and Kronospan have become irregular.

Simultaneously, consistent deliveries started from the Belarusian factory of Kronospan holding: out of the total 405,000 m3 produced, share of the Russian market in the sales amounted to 66%. The contracts were concluded in Russian roubles, which allowed the Mogilev mill to win the competition with suppliers from Europe and North America.

Volume of the Russian OSB market is estimated at 1.2 million m3. About 20 projects are announced with a total capacity of 6 million m3, but most likely in the next two years only one major production and one low-capacity mill will be launched; under favourable market conditions it is possible that one of the existing Russian factories will start the second line.

A detailed list of investment projects of OSB capacities in Russia, split on the current project status; the statistics of imports of OSB to Russia; overview of the Russian forestry, OSB market and competing panel segments; the outlook on consumption, exports, imports and production are presented in the study of WhatWood agency “OSB market in Russia 2015-2016”.

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