Comments on Chinese market in 2016

In 2016, the export of sawn softwood from Russia to China has shown an impressive growth: +37% (YoY) to 13.4 million m3.  In 2015, in relation to 2014, the growth rate amounted to 17%.

Many companies, especially players of pine sawn wood products, redirected part of the products of similar specifications from Egyptian and CIS markets to China. In November-December 2016, Lesosibirsky LDK No. 1 has reduced supplies to Egypt from 5.3 and 1.6 thousand m3 accordingly, whilst shipment to China has grown to 25 and 15 thousand m3.

Russian Timber Group has become the largest supplier of sawn softwood products to the Chinese market, which comprises of three wood sawing and woodworking enterprises: SEL-Tajriku, LDK Igirma and TSLK (Irkutsk Oblast). The company has increased supplies by 30% (YoY) to 507 thousand m3, and also significantly reduced supplies to Egypt in the second semester of 2016.

Detailed report on the Russian softwood lumber export markets is given in the latest issue of our WhatWood Monthly Lumber Report.