In recent years, Russian birch plywood producers have faced a significant price increase in birch logs. This was partly driven by an increase in plywood production volumes by domestic producers, as well as rapidly increasing exports primarily sent to China. In addition, there are significant investments planned for birch plywood production in the coming years. If all announced investments are realized in the future, they will result in a nearly 1 million m3 annual increase in birch log consumption. In order to protect plywood producers and their competitive advantage in the global market, the Russian government may possibly introduce a temporary export ban for birch logs over 15 cm in diameter.
In October 2016, the Ministry of Industry and Trade of the Russian Federation initiated a temporary ban of birch log exports. A major step towards making this a reality was the approval of a recent government decree effective January 17, 2017, which stated that birch logs with the diameter larger than 15 cm are included in a list of high priority commodities for the Russian local market. The decree specifies that exports of these commodities may be temporarily limited or banned in extraordinary situations.
Russian Birch logs being loaded for transport
This post was originally published on Forest2Market’s blog: Link.