{"id":82046,"date":"2022-03-22T06:56:25","date_gmt":"2022-03-22T06:56:25","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/war-ukraine-immediate-effects-global-timber-market\/"},"modified":"2025-09-19T08:57:12","modified_gmt":"2025-09-19T08:57:12","slug":"war-ukraine-immediate-effects-global-timber-market","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/war-ukraine-immediate-effects-global-timber-market\/","title":{"rendered":"War in Ukraine and its immediate effects for the global timber market"},"content":{"rendered":"<p>Trade with Ukraine has considerably reduced following the martial law in Ukraine and the mobilization of men.\u00a0For sites that still produce in western Ukraine, the problem is to transport to Europe, as Ukrainian truckers are not allowed to leave Ukraine.\u00a0We cannot expect a change by the end of the war.<\/p>\n<p>Russian exporters are nonetheless subject to payment and transport difficulties.Banks sanctioned and excluded from SWIFT (Sberbank, VTB, Otkritie, Sovkombank, Promsvyazbank, Novikombank) represent half of the Russian banking system.\u00a0Exporters are turning to other banks to solve this problem.<\/p>\n<p>The main difficulty is logistics.\u00a0Land and rail transport is very disrupted from Russia to Europe.\u00a0The alternative route via the Baltic Sea lacks ships.\u00a0Capacity has fallen by half following the decisions of various companies to interrupt their activities in Russia.<\/p>\n<p>Exports of machinery and supplies to Russia have become difficult:<\/p>\n<ul>\n<li>Importers have changed banks and are creating sub-accounts in other countries such as Kazakhstan;<\/li>\n<li>Transport faces the same problems as described above;<\/li>\n<li>Credit institutions have stopped covering Russia and export finance agencies no longer work with Russia<\/li>\n<\/ul>\n<p><strong>Trade between China and Russia ongoing<\/strong><\/p>\n<p>Chinese importers working with Russia are switching to RMB payments. Chinese banks are expanding their operations in Russia. Shipping is very difficult in western Russia but rail and road connections work between the two countries. Rail capacity is fully utilized by Russian rail, which requires reservations a month in advance.<\/p>\n<p>Many companies from the\u00a0<strong>Middle East<\/strong>\u00a0and\u00a0<strong>South Korea<\/strong>\u00a0are questioning their trade with Ukraine and Russia. They are aware that their long-standing suppliers are having difficulty delivering and they are looking for new suppliers.<\/p>\n<p><strong>Fran\u021ba<\/strong>\u00a0is not a major importer of wood from Ukraine or Russia. The import of sawn softwood accounts for around 10% of sawn softwood imports in France. The situation impacts packaging and pallets. For construction wood, an increase is expected. Importers leave a delay before communicating to their customers the bullish consequences, especially against those who import from Russia and Ukraine but also from Scandinavian countries. The increase in the price of oil is rapid and significant, which will make transport more difficult and also increase the cost of forestry work.<\/p>\n<p><strong>India<\/strong>\u00a0imports softwoods (pine, spruce) from Europe and also from Ukraine and Russia. Because of the war, prices have soared like never before. All companies that export need this wood for packaging and as prices rise export prices will rise. However, the import has already increased by the cost of freight and will increase further due to the shortage of material and the unfavorable exchange rate between INR and USD. Raw materials for the plywood industry, such as phenol, are on the rise, so plywood prices have jumped 20-25% in the past ten days, and will rise further. Steel prices have increased enormously and this will slow down construction and therefore demand for wood in the days to come.<\/p>\n<p><strong>Italian<\/strong>\u00a0importers source more or less 30% of their softwood imports from Russia and Ukraine and Belarus, out of a total of 4 million m3. The war created a real problem and many turned to other suppliers, for example the elliotis pine from Brazil. Payments and delivery times are not a real problem if the goods have not been prepaid, but many have cargoes stuck in the ports of St Petersburg or Novorosyrsk, almost abandoned by charterers. Birch plywood is mainly Russian and will be missed by the flooring industry and the furniture industry. In Ukraine, for now, transporters are allowed to leave loaded and some flooring companies import from their partners, but with two problems, border time and documents, as EUTR regulations still apply. So Italian importers believe it is too early to say anything about the situation.<\/p>\n<p>In\u00a0<strong>Pakistan<\/strong>\u00a0many timber importers are waiting for spruce and pine deliveries from the Ukraine - without any forecast as to when they will arrive. Many companies are now planning to expand imports of yellow pine and white pine from North Carolina. Contracts with German and Austrian suppliers are also concluded quickly, so that logs and sawn timber can reach Pakistan comparatively quickly and cheaply. Imports from countries bordering Ukraine are sometimes specifically advised against. In addition, there is unusually high traffic in the ports of Slovenia and Romania, which also leads to logistics delays of up to about one month.<\/p>\n<p><strong>North American<\/strong>\u00a0importers are noticing a shortage of birch plywood in particular.<\/p>\n<p>The<strong>\u00a0Baltic States<\/strong>\u00a0and in particular the furniture manufacturers there are currently looking for alternative suppliers of wood and wood products - in particular birch, plywood parts and MDF. Siberian larch is also becoming scarce. All of this affects the UK market as well.<\/p>\n<p><strong>Poland<\/strong>'s timber industry also relies on numerous semi-finished products from Russia, Belarus and the Ukraine. Accordingly, some companies fear an interruption in the supply chain. Added to this are the production stops at the Ukrainian plants. However, some also see it as an opportunity to produce the previously imported goods in their own country in the future. However, it remains questionable whether the capacities will be sufficient for this at such short notice. Added to this is the increasing staff shortage, as Ukrainian employees defend their country. Polish middlemen who broker Russian goods to Europe are also looking for alternative suppliers.<\/p>","protected":false},"excerpt":{"rendered":"<p>Trade with Ukraine has considerably reduced following the martial law in Ukraine and the mobilization of men.\u00a0For sites that still produce in western Ukraine, the problem is to transport to Europe, as Ukrainian truckers are not allowed to leave Ukraine.\u00a0We &hellip; <a href=\"https:\/\/www.timberindustrynews.com\/ro\/war-ukraine-immediate-effects-global-timber-market\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":59318,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4713,4716,4715,4714],"tags":[3286,3311,3403,3323],"class_list":["post-82046","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-companies-in-the-timber-industry","category-latest-trends","category-market-analysis","category-wood-industry-prices","tag-prices","tag-russia","tag-ukraine","tag-wood","topic-forestry","topic-industry-prices","topic-wood-construction","topic-wood-based-panels","topic-woodworking-machinery","area-africa","area-asia-middle-east","area-australia-and-pacific-region","area-china","area-europe","area-north-america","area-russia","area-south-america"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - 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