WhatWood:”The downward trend of the export of unprocessed round timber from Russia is saved”

According to the information and analytical agency WhatWood, the reasons for the decline in exports are the high demand for sawn raw materials within the country, especially in Siberia and the Far East after the introduction of new capacities, as well as tariff and non-tariff regulation measures carried out by the Russian government.

Birch veneer log is one of the few assortments, and each year the demand for which continues to grow. And the high demand for it remained both in China and Finland.

In general, China has already shifted to coniferous round wood from New Zealand, which increased supplies in 2017 by 17% (yoy), and in 2018 +21% (yoy) to 17.4 million m3. Also reducing the supply in China and Canada: – 26% to 2.5 million m3 in 2018 the Share of Russian raw wood among the total import volume in China market in 2018 amounted to 20% (2017 — 26%, in 2011 — 45% or a volume of about 14 million m3).

In 2018, total exports of softwood and hardwood round wood from Russia to China decreased by 5.1% (yoy) to 12 million m3. Overall, exports of all countries decreased by 2.1% (yoy) to 19 million m3. The decline in the export of unprocessed wood to China may continue in the short term. Resolution of 12 November 2017 No. 1520, No. 1521 introduced new tariff quotas in respect of Ayan spruce,  Whitebark fir, and Daurian larch primarily grows in the Far East. As part of the quota for these timbers, a reduced rate of export customs duty is set at 6.5%, but not less than 4 euros per 1 m3 in the amount of 4 million m3 annually.

In 2018, the quotas were distributed as follows: RFP Group (3.1 million m3), Terneyles (544 thousand m3), Asia forest (231 thousand m3), etc.