According to a Reuters report, Russia’s ban on the export of forestry products until the end of 2022 will rattle an already tight North American lumber market as exports from Europe are redirected to meet domestic demand.
Dogged by rising fuel costs, demand exceeding rail transport capacities and other shipment snags, U.S. home builders have been struggling to find lumber and other raw materials needed to deliver on a massive backlog of projects from last year.
Earlier in March, Russia banned exports of certain goods such as telecom, medical, auto, agricultural, electrical, and tech equipment, as well as some forestry products to retaliate against Western sanctions imposed over its invasion of Ukraine.
Russia’s forestry exports ban could make things worse by removing as much as 3% of U.S. lumber imports via Europe, leading to higher prices for lumber in the United States. Currently, the raw material was trading at about $651.9 per thousand board feet (MBF), more than 45% higher when compared with five years earlier. About 10% of the wood consumed in Europe comes from Russia.
With the ban, Europe is more likely to move most of its production to domestic markets, slashing exports to offshore markets such as the U.S. and Canada.
Source: Go Viet
