In January - November, Russia decreased plywood production by 28% y-o-y to 3.0 million m3. According to Rosstat, production of plywood in November fell 38%.
Russian companies continue to export plywood to the U.S. despite high duties and low prices. In October, Russian producers exported 52 thousand m3 of plywood to the U.S., which is 29% less than a year earlier.
Since July 10, exports of wood products from Russia and Belarus to the European Union have completely stopped due to sanctions. Earlier, the UK stopped importing wood from these countries, and the U.S. revoked Russia's "most favored nation" trade status. The sanctions led to a dramatic drop in production in Russian forest based industries that were heavily dependent on exports. The reduction in plywood exports to Europe and the U.S. led to a drop in the capacity utilization of Russian plywood mills to 20-40%.
Prior to Russia's invasion of Ukraine and subsequent sanctions, the U.S. was the second largest market for Russian plywood after Europe. In 2021, the volume of exports to the United States amounted to 569 thousand m3 with value $143 million.
