The cessation of imports of lumber and plywood from Russia and Belarus reduced their supply in Europe, which has weakened availability and raised prices.

Until this spring, a significant part of the EU’s lumber and plywood needs were imported from Russia and Belarus.

The market situation for lumber and plywood is expected to be hot this summer, when efforts are being made to replace the lumber imported from the East with imports from elsewhere and with Europe’s own production, which is not enough to fully replace it.

Towards the autumn, however, the market situation will deteriorate as higher prices for construction materials reduce construction. As a result, demand and price of lumber are expected to decline.

Following the cessation of European imports from Russia and Belarus, the sawmills in these countries have turned their attention to the markets of Asia, North Africa and the Middle East. Delivering products from sawmills in the western part of the Urals to Asia would require large-scale logistics investments.

Deliveries from Russia to the Middle East and North Africa would require safe shipping through Black Sea ports, which is not possible due to Russian hostilities. Competition in the markets of these areas will intensify if Russian sawmills pull their supplies.

In any case, the general market situation in North Africa is deteriorating as a result of the food crisis threatening the countries of the region.

The post The market situation for lumber and plywood in Europe is hot this summer appeared first on Global Wood Markets Info.

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