Timber industry research & analytics Is the main obstacle in the absence of raw materials for plywood manufacturers?
Export of birch logs is not the only cause of shortage of raw materials for plywood mills.
If we analyze the statistics, then in 2017 China became the leading export destination, where about 1.5 million m3 of veneer logs were exported from Russia, to Finland – up to 200 thousand m3. However, the main regions from which the ridge is exported are those where there is no production of birch veneer logs (Primorsky region– 500 thousand m3 for 2017, Khabarovsk region – almost 250 thousand m3 and Krasnoyarsk region, Irkutsk region). While the regions that are the traditional place of plywood enterprises are Kirov region, Leningrad region, Vologda region, Smolensk region, Nizhny Novgorod region and the Republic of Udmurtia.
So far, there is concern about the extent to which birch logs will be harvested for domestic consumption in 2019. Recall that in July 2018, Russian Prime Minister Dmitry Medvedev signed resolution No. 836 on the temporary introduction of quotas for the export of veneer logs. The law will come into force on January 01, 2019 and will be valid until June 30, 2019. The restriction is imposed on the export of logs from birch wood (Betula spp.) the diameter of the smallest cross-section is not less than 15 cm, length is not less than 1 m (HS code EAEU 4403 95 000 1). For the first half of next year, the quota will be 567 thousand m3. It will be distributed by issuing licenses. They will receive a company that was engaged in the export range in 2014-2016 the Authority to allocate quotas of the Ministry of industry and trade of the Russian Federation. The resolution applies to all countries that are not members of the Eurasian economic union. The member States of the Union include Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia.
A disputable situation with raw materials could arise for international companies that have production facilities in Russia and supply timber to their plants. Director of corporate communications “UPM-Kymmene” Natalia Malashenko noted that their company exports supplies balance and range of firm. It is not clear how customs officers will distinguish plywood from other raw materials. The range of firm can be confused with carrying wood, because it is not yet defined qualitative characteristics, as explained, only the dimensional characteristics of raw materials in diameter.
There is a possibility that with the introduction of restrictions on the import of round timber with a diameter of more than 15 cm, there will be a restriction on other raw materials. When, with the restriction of exports to assortments, for which there is no high demand in the domestic market, the volumes of harvesting of roundwood, including birch wood, can be reduced.
The Director General of the Association of the enterprises of the furniture and woodworking industry of Russia Timur Irtuganov believes that the situation on the raw materials market, which occurred ten years ago, after increase of export duties on roundwood should not be compared with the one that will come when will come into force the decree No. 836 , and will be distributed the quotas for export of veneer logs. Therefore, there is still a debatable question that in six months the indicators for the procurement of raw materials may fall: during this period, the results of the introduced restrictive measures will only be summed up and perhaps they will be revised in the future. Nevertheless, since 2007 the entire policy of the state is aimed at the development of Russia’s own wood processing, perhaps sometimes with the use of strict measures.
