Global Lumber Markets Badly Impacted by Trade Disruption Due to Ukraine War

SEATTLE (Scrap Monster): The new Focus Report, Ukrainian War Fallout - Disruptions in Global Trade of Forest Products (2022) provides detailed investigation on the short-term and potential long-term implications of the war and its impact on worldwide shipments of lumber, panels, wood pellets, logs, wood chips, pulp, and paper products. 

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According to the report, the disruption in trade in Russia, Belarus and Russia, consequent to the Russian invasion on Ukraine, has badly impacted global lumber markets. This is mainly because, these three countries together had accounted for approximately one-fourth of the global lumber shipments in 2021. Since the commencement of the war and the subsequent sanctions by Western countries, there has been a dramatic decline in exports of forest products from these countries.

The halt in lumber shipments to Europe and some other Asian countries has had a major impact. The Russian sawmills are seen unable to quickly shift to other potential markets in the short term. An analysis of current market situation suggests that log supply in several key European markets are becoming tighter. This may force many European exporters to limit their overseas exposure to fewer markets that fit their product mix and risk tolerance, the report noted.