Already in May 2022, Russian sawmilling companies were able to largely feel the impact of sanctions and restrictions on their activities.
Thus, market participants note that shipments to Europe, if they occur, are in limited volumes, either under the obligations of previously concluded contracts or exclusive specifications.
At the same time, Europe also notes the impact of the lack of Russian products and talks about a growing shortage.
Alternative sales markets for Russia, namely Egypt and China, are also experiencing a number of problems. So, the Egyptian market for Russia is now determined not by the price, but by the possibility of paying for deliveries, because. there are difficulties in obtaining a letter of credit in the country.
In China, at the moment there is a high level of inventory and a low level of demand, which, among other things, is constrained by quarantine in the country.
At the same time, the price in the Chinese market continues to fall, because. for Russian suppliers, this market is the most obvious in terms of sales redistribution.
The post Russian sawmills hit by sanctions appeared first on Global Wood Markets Info.