Sveza Group: export share in Russian plywood sales grew in 2014

The decline in consumption in the Russian market along with the favourable situation on export markets has led to a redistribution of trade flows, according to a message from Sveza Group. In the first half-year, domestic sales declined by 0.3%. In addition, there is increasing competition from cheap Chinese plywood made of poplar, which is now selling harder on environmentally sensitive markets of Europe and USA.

The main driver of domestic demand for plywood still lies in the construction, primarily monolithic, where the demand is focused on laminated birch plywood. With that, the volume of residential construction in Russia in the first half-year of 2014 decreased by 2.6% year-on-year, which surely affects plywood sales. However, according to Sveza’s Marketing Director Yulia Ermakova, the decrease may also reflect the final phase of projects launched on a wave of post-crisis recovery and growth several years ago.

Recently, there has been a redistribution of demand in favour of economy-class apartment houses. As a consequence, the demand for shuttering plywood in the mass construction is decreasing, and the current economic situation and uncertainty of international relations do not give reasons to anticipate growth in demand for residential and commercial housing in the medium term.

In the first half of 2014, there has also been a growth trend for small players on the Russian market: they took over this niche after the major manufacturers shifted deliveries for exports.