What awaits the Russian export of timber

the Russian exports of forestry in 2019, according to the information portal “Made us” amounted to 12.3 billion dollars (calculated on the basis of FCS data and external trade statistics). The above result was only a year earlier (about 13.5 billion us$), but then the world market prices for pulp and paper products was abnormally high.

the main exports of timber products comprise lumber with a volume of 4.63 billion dollars, in second place – paper and cardboard – 2,04 billion dollars, as well as chipboard and plywood is 2.03 billion dollars. Many positions are steadily growing in physical terms. So, in 2019, the export of veneer increased by 7.5%, specific profiled lumber moldings, parquet Board and other specific lumber added of 9.2%, plywood – 2,5%. The export of sawnwood has been growing for seven years in a row Russia has ranked second in the world, trailing only Canada, the rupture with the past has decreased over the past five years from 45 to 15%.

Photo: iStock the Head of the Federal forestry Agency as the regions where the first forest fires

the Russian export center (REC) say that the timber industry is one of the key directions of industrial exports. Russia relies on products with high added value – this will allow you to develop production in the country, not just to earn on the export of natural raw materials. The range of supplies is quite wide – it’s plywood and various wood panels and finished products made of wood – boxes, barrels, wood flooring, and more.

Today, timber companies are available all support measures offered by the state. The most popular, apparently, is compensation up to 80% the cost of transporting products. So, in 2019, the volume supported by the grant of the export timber industry amounted to 112.7 billion rubles, according to REC.

However, it is only about the product, which is officially recognized in Russia as high-tech. So, last year, the opportunity to offset transportation costs lost manufacturers are very popular in Europe ecologically clean biofuel – pellets. Because pellets pellets are made from waste wood, they loosely can be called products with high added value.

Photo: iStock Putin called the acceptable current level of oil prices

2017 fuel pellets were included in the relevant list of high-tech products, and exporters of pellets could qualify for subsidies of transportation. And in 2019 from the list withdrew, but put plywood and various wood-based panels. It does not hurt to update the historical record – the export of pellets and briquettes in 2019 increased by 40%, to 293 million dollars, and Russia strengthened its position in the top five largest exporters of this product.

Despite the development of forestry exports, a high degree of processing, export of round timber remains high. Russia is the world leader in the export of round timber (15% of the world market). According to different sources, on average, the country produces nearly 22 million cubic meters of timber per year, while exports of unprocessed timber should be around 17-20 million cubic meters. That is a significant part of Russia produced timber goes abroad. In this regard, from time to time there are initiatives to ban or severely restrict the export of logs in order to concentrate on the development of industries in the country. However, a ban would violate obligations under the world trade organization (WTO).

Exporters of roundwood say that the market suffered from the introduction of protective duties. From the moment of Russia’s accession to the WTO the highest rate (25%) is preserved only for export to Asian markets, but as this is a key direction, then the market dipped.

the exports to China remain vitally important for the far Eastern business – about 80% of the forest is the right place, but the epidemic of the coronavirus may worsen the situation of this sector

According to the “Lesprom inform”, far East companies over the last 10 years have lost up to 50% of the supply in the Chinese direction, almost completely lost to the Japanese market. The vacant niche in these countries took the loggers from Canada, USA, Australia and other countries.

the exports to China remain vitally important for the far Eastern business – about 80% of the forest is the right place. The epidemic of the coronavirus may worsen the situation of this sector – in mid-February, the Chinese side has strengthened phytosanitary control of timber. Not allowed to import into the country of wood with bark, which could mean huge losses for the Russian timber industry. China customs is ready to miss the logs, disinfected by fumigation or heat treatment, but to fulfill the requirement is now impossible due to the lack of appropriate infrastructure.

All this is happening against the background of the complex situation in the far East over the past year the duty on exports of logs here rose to 60% and will rise to 80% by next year.

Infographics “RG”/ Anton Bookbinders/ Irina Alpatova