The impact of the Russia-Ukraine conflict may limit the foreign exposure of European sawmills to fewer markets

Posted on May 2, 2022   |  

• Due to sanctions, the Russian forest industry will struggle to source parts, equipment, and finance, which will cause even non-sanctioning countries, such as China, to adapt to changes in trade flows.
• Sending lumber by ship or rail from sawmills in northwestern Russia to China encounters logistical problems, while the MENA lower-grade wood market region is not viewed in a robust expansion mode.
• In the longer term, some lumber-producing companies may consider investing in new production capacity, although log supply in many regions of Europe is becoming tighter.