Timber Industry

Financial indicators of timber companies in Russia reached their peaks in 2021, which was due to the recovery of consumer demand after the covid 2021, extraordinary prices for lumber and the growth of housing construction.

Despite the decline in the volume of real estate sold, the China Timber and Wood Products Distribution Association cannot say that the market of finishing materials and furniture was bad, because over the past 6 years, more than 1.6 billion square meters were commissioned annually.

The statistics of production and trade of wood products reflect goods that have historically been the main products obtained from forests, and for which there are established markets. For many forest owners and forest managers, wood products are by far the most important source of income and employment

Starting from the second quarter of 2022, the financial indicators of timber companies have been steadily falling by 13-16% quarterly and falling back to the level of three years ago.

The inclusion of IKEA products in the list of goods for which parallel imports are allowed runs counter to the need to restrict the Russian market from supplying furniture from "unfriendly" countries.

Russia is one of the world's three largest producers of softwood and hardwood lumber, behind China and the United States. The volume of sawn timber production in Russia in 2022 is expected to decrease.

According to the operational data of the Association of furniture and woodworking enterprises of Russia (AMDPR), in 2022 the volume of production of wood-based panels decreased by 12%, plywood — by 29%.

Currently, the Russian economy is facing unprecedented challenges.

The volume of furniture production in Russia in 2022 increased by 15% compared to 2021 to 356 billion rubles.

The plant «Plyterra» in Mordovia (Russia) has launched a new sawmill with a capacity of about 30 thousand cubic meters per year, according to the website of the government of the republic.