The situation on the forest products market in 2019 – 1Q 2020 in Russia and the world

In 2019 slowdown in the global economy, geopolitical tensions have pulled a decline in demand for forest products. Prices for most forest products remained at low bases. Only to 1Q 2020, prices on world markets for pulp, plywood, lumber entered an uptrend. Global growth in demand for chemical pulp continued in 2019, although uncertainties in the global economy and higher than average producer stocks affected pulp deliveries to the world market throughout the year. Pulp prices declined throughout the year from record levels in 2018 to marginal cost levels for producers. Extremely low timber prices allowed maintaining operating profitability. In Europe, windblow wood and wood resulting from the outbreak of bark beetle led to a collapse in raw material prices. In Russia, abnormally warm weather actually failed plans for winter harvesting, but this did not lead to an increase in market prices.

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