WhatWood Agency has completed an update to its annual survey MDF / HDF Market in Russia in 2019-2020

The volume of MDF/HDF, fiberboard (all types of panels) production reached 3.7 million m³ (+ 6% vs 2018). Excluding from the calculations the mature segment of the wet fiberboard, the volume of MDF / HDF production, dry fiberboard at the end of 2019 amounted to 3.3 million m³, + 7% by 2018. The increase was provided by Egger Gagarin, Kronospan, Swiss Krono, “Asinovskiy MDF plant”, “Lesplitinvest”, “Vyakaplitprom”.

The fiberboard segment can hardly be attributed to the export-oriented segments of the forest industry. In 2019, the volume of domestic consumption reached 2.5 million m³, exceeding the indicators of 2017 and 2018 by 100 thousand m³ (due to the commissioning of Pavlovsky DOK and Vyatkaplitprom). The share of panels use in the domestic market in 2019 was 77%, which has been constant over the past three years. For the period 2020-2025 demand growth is projected to slow down at 0-1% per annum. This slowdown is primarily due to a decrease in the population’s ability to pay.

The needs of the Russian market are almost completely met by domestic products. Products with high added value are imported: flooring, wall panels, moldings. The volume of imported products in 2019 decreased by 3% to 498 thousand m3. MDF / HDF import to Russia are formed by four countries: Belarus, Poland, China, Germany. Their share in total Russian import in 2018-2019 was 92%.

The Russian market is highly competitive. Manufacturers of MDF/HDF, fiberboard are “fighting” in the field of product innovation, new designs, prices and service solutions. HHI was 1403 in 2019. In 2019 the product segments for flooring and thin panels existed in a moderately competitive environment, while the thick panels segment was highly concentrated. The focus of Kastamonu on the production of thick MDF panels (over 8 mm) in 2019 led to the establishment of a high monopoly concentration in the market (HHI 2110). High market concentration in this segment is not constant. Changes in the market environment may change the level of competition in the future.

Read detailed information in the annual review MDF / HDF Market in Russia in 2019-2020.