The RF Ministry of Industry and Trade proposed to limit or prohibit the exports of particleboards, OSB, and chips

The Ministry of Industry and Trade of Russia proposes to include particleboards, OSB, and softwood chips (both fuel and process ones) in the list of goods that are important for the Russian domestic market that may be subject to temporary restrictions or bans on the export. This is stated in the draft government decree prepared by the ministry. The document is published on the federal website of draft laws and regulations.

The legislative initiative stems from the significant increase in particleboard exports and the decrease in its share in the domestic market. According to data of the Ministry of Industry and Trade, the output of particleboards decreased by 1.5% YoY in 2020.  According to the current data of the Federal Customs Service of Russia, the exports of these products increased by 15.8% over the same year. This situation had a negative impact on furniture makers that use particleboards in their production.

Earlier, WhatWood Agency conducted a study by interviewing about 40 market participants (wood-based panel manufacturers, traders, furniture companies) to identify the causes of the situation. 70% of them noted that the shutdowns of the plants of Russian Laminate Group and the closure of facilities for a capacity of 480,000 m³ per year starting from Q1 2020 (i.e. with a pace of -40,000 m³ per month) had resulted in a shortage of particleboards/laminated particleboards amidst the increased demand for wood-based panels during the quarantine.