Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical...

34
Forest products developments in the Russian Federation Forest Products Trends & Developments. Market Discussions. Tuesday, 5 November 2019. Geneva. Igor Novoselov Consultant WhatWood, Timber Industry Research & Analytics Agency (Russia)

Transcript of Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical...

Page 1: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

Forest products developments in the Russian Federation

Forest Products Trends & Developments. Market Discussions. Tuesday, 5 November 2019. Geneva.

Igor NovoselovConsultantWhatWood, Timber Industry Research & Analytics Agency (Russia)

Page 2: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

Contents

About WhatWood Agency 3

Russian forest sector at a Glance 4

Wood raw materials 10

Sawn softwood and sawn hardwood 13

Wood-based panels 17

Plywood 19

Fiberboard, MDF / HDF 23

OSB 25

Particleboard 27

Pulp and paper 29

Wood pellets 31

Forest Products Trends & Developments. Market Discussions. 2

Page 3: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

Production structure of forest sector in Russia

3

Basic semi-

finished products

Biofuel

Timber harvesting

Pulp & paper products

Mechanical woodworking

Forest resourcesSemi-

finished products Further processing

Sawlogs

Veneer logs

Pulplogs

Forest residue

Veneer

Plywood

Chopped wood, wood

chips, sawdust

▪ Pulp wood

▪ Wood pulp (CTMP,

DMM, CTM)▪ Viscose fibers

Particleboard, OSB, MDF

/ HDF, flooring,

fiberboard

▪ Sawn timber

▪ Railway sleepers

▪ Hunch

▪ Pit-prop

▪ Paper

▪ Paperboard

low-grade wood

▪ Wood coal

▪ Firewood

▪ Pellets, briquettes

Constructional timber

Primary processing

▪ Packaging

▪ Tissue

▪ Others from paper and

paperboard

Wood chemistry

▪ Tall oil and others

▪ Ethanol, bioethanol, Lignin

Procurement of

resins

Non-wood forest

resources

Edible forest

resources

Hunting and agriculture

Recreational services

(ecotourism)

Wood p

roducts

Fore

str

yFurniture components:

▪ Tabletop

▪ Others

Construction

elements:

▪ molding, trim

▪ Glulam

▪ Exterior finish materials

Woodenconstruction

Furniture

Forest products market research conducted by WhatWood on a regular basis

Others

Forest Products Trends & Developments. Market Discussions.

Page 4: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

Russian forest sector at a Glance

Page 5: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

Ru

ssian

fore

st secto

r at a

Gla

nce

Forests cover

5Forest Products Trends & Developments.

Market Discussions.

• 45% of Russia is covered by forests• Forest area is 1.2 billion hectares • Growing stock is 83 billion m3

• AAC is 700 million m3 per year• Timber harvesting is 238 million m3 (2018)

Page 6: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

Sources: WhatWood, Rosstat

Ru

ssian

fore

st secto

r at a

Gla

nce

Financial indicators of forest industry

6

Growth of GDP and forest industry sales (2006 = 1,0) Contribution of forest products to GDP Share of forest industry in the country’s GDP

Capital investments in the forest industry, billion rubles Sales profitability in 2017-2018, % Number of employees

0

200

400

600

800

1000

1200

1400

1600

1800

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Bil

lio

n r

ub

Pulp and paper

Woodworking

Timber harvesting and forestry

Furniture

Undocumented transactions

Others

1,00%

1,10%

1,20%

1,30%

1,40%

1,50%

1,60%

1,70%

1,80%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

%

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Revenue growth ofForest sector

GDP growth rate

59 60

77

84

55

48

107

141

84

75

99

118

152 150

0

20

40

60

80

100

120

140

160

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Pulp and paper

Woodworking

Forestry & Forest Harvesting

27,1

20,8

18,1

12,4

8,8

9,0

9,1

5,8

-1,7

41,3

26,2

23,0

16,3

14,5

12,6

10,9

10,5

4,2

-10,0 0 10,0 20,0 30,0 40,0 50,0

Wood pulp

Cardboard

Paper

Plywood

Sawn timber

Fiberboard, MDF / HDF

All sectors of the economy

Round wood

Particleboard / OSB

2017

2018

728

670

605

539

461427

409 392369

347 332 325 314 315

0

100

200

300

400

500

600

700

800

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Forestry

Forest harvesting

Pulp and paper industry

Woodworking

Forest Products Trends & Developments. Market Discussions.

Page 7: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

Sources: WhatWood, Rosstat

Ru

ssian

fore

st secto

r at a

Gla

nce

Financial indicators of Russian forest industry

7

Sales of forest industry sectors in 2009-2018, billion rubles

714

847

1 0461 106

1 157

1 252

1 478

1 633 1 640

2 002

0

500

1000

1500

2000

2500

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Other products

Tissue

Fibreboard

Particleboard

Pulp andmechanical pulp

Сardboard

Roundwood

Plywood

Sawn timber

Paper

Chemical and mechanical wood pulp

• The contribution of the forest sector to the Russian economy is about 1.6%.

• The main contribution (about 30%) was provided by the products of the pulp and paper industry.

• In 2018, there was a strong growth in forest products. The main reasons are high prices in the world market, which persisted up to 3Q 2018. In 4Q 2018 and 2019, prices continue to decline on world markets, which is likely to lead to slightly lower results for the year.

Forest Products Trends & Developments. Market Discussions.

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Ru

ssian

fore

st secto

r at a

Gla

nce

Exports and imports structure of forest products

8

Russia: Exports of forest products in 1998-2018 (billion USD)

Russia: Imports of forest products in 1998-2018 (billion USD)

2,94 3,273,93 3,92

4,395,02

6,40

7,708,36

11,4910,63

7,83

8,95

10,92

9,9110,52

11,15

9,31 9,52

11,33

13,36

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

16,0

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Paper and cardboard

Wood pulp, waste paper

Other forest products based onmechanical processing

Plywood

MDF/HDF/Fibreboard, flooring, panels

Particleboard and OSB

Sawn timber

Roundwood

1,030,76 0,87

1,191,41

1,71

2,09

2,46

2,93

4,03

4,86

3,98

4,79

5,82

5,345,66

5,01

3,162,99

3,203,50

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Paper and cardboard

Wood pulp, waste paper

Other forest products based onmechanical processing

MDF/HDF/Fibreboard, flooring, panels

Particleboard and OSB

Source: customs statistics, WhatWood

Forest Products Trends & Developments. Market Discussions.

Page 9: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

Ru

ssian

fore

st secto

r at a

Gla

nce

Exports and imports structure of forest products

9

Russia: Exports of forest products by countries in 1998-2018 (billion USD)

Russia: Imports of forest products by countries in 1998-2018 (billion USD)

Sources: customs statistics, WhatWood

2,94 3,273,93 3,92

4,395,02

6,40

7,708,36

11,4910,63

7,83

8,95

10,92

9,9110,52

11,15

9,31 9,52

11,33

13,36

0

2

4

6

8

10

12

14

16

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Others

Egypt

CIS

China

Europe

1,030,76 0,87

1,19 1,411,71

2,092,46

2,93

4,03

4,86

3,98

4,79

5,825,34

5,66

5,01

3,16 2,99 3,203,50

0

1

2

3

4

5

6

7

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Europe

China

CIS

Others

Forest Products Trends & Developments. Market Discussions.

Page 10: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

Wood raw materials

Page 11: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

Sources: WhatWood, Rosleskhoz, FAOstat

Wo

od

raw m

ate

rials

Timber harvesting

11

Russia: Timber harvesting in 1992-2018 (million m3)

• Industrial roundwood removals increased byalmost 12% in the CIS subregion in 2018, to arecord 245 million m3, driven by increases in bothconiferous and non-coniferous logs in the RussianFederation.

• It is expected that most future investments in theRussian forest industry will be in Siberia and theFar East to meet rising demand for lumber,plywood and pulp in China. There are also plans,however, to increase investment in panels, cross-laminated timber and pulp in the westernprovinces.

• The Russian Federation is the only country in theCIS subregion exporting substantial volumes ofroundwood. Belarus and Ukraine have bothbanned log exports.

228

149

94 93

78

118125

144

158165165

174178

185191

207

181

159

174

197192193,8

203205213,8212,4

238,5

0

50

100

150

200

250

300

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

Forest Products Trends & Developments. Market Discussions.

Page 12: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

Sources: WhatWood, customs statistics

Wo

od

raw m

ate

rials

Trade of industrial roundwood

12

Russia: Timber harvesting in 1992-2018

• The Russian Federation is the only country inthe CIS subregion exporting substantialvolumes of roundwood. Belarus and Ukraine –the two other countries in the subregion withlarge forest resources – have both banned logexports.

• The volume of coniferous industrial roundwoodexports from the Russian Federation has fallenfor two straight years and was only 11.0 millionm3 in 2018, the lowest export volume in morethan 20 years.

• Export shipments have fallen by more than 55%since the country imposed high log export taxesin 2009, increasing the availability of logs forthe domestic industry, and softwood lumberexports have doubled over the same period (awin for the Russian Federation in terms ofmoney and jobs staying in the country).

21,220,8

17,3

18,8

20,5

19,420,1

19,4 19,0

0

5

10

15

20

25

2010 2011 2012 2013 2014 2015 2016 2017 2018

Other

Sweden

Finland

China

Forest Products Trends & Developments. Market Discussions.

Page 13: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

Sawn softwood and sawn hardwood

Page 14: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

Sources: WhatWoodNote: the share is calculated from the total sawnwood production in the country

Saw

n so

ftwo

od

an

d sa

wn

ha

rdw

oo

dThree macro-region for the production of sawn timber

14

I. North-Westshare: 28%

II. Siberiashare 42%

III. Far Eastshare: 7%

Forest Products Trends & Developments. Market Discussions.

Page 15: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

Sources: WhatWood, UNECE

Saw

n so

ftwo

od

an

d sa

wn

ha

rdw

oo

dTrade of industrial roundwood

15

Russia: sawn timber production in 1992-2018 (million m3)• The CIS subregion produced almost 48 million m3

of sawn softwood in 2018, up by 7.1% over 2017.

• Sawn softwood production increased by 4.4% inthe Russian Federation in 2018, to 39.4 million m3,which was more than 82% of the CIS subregion’soutput (47.0 million m3).

• Exports of Russian sawn softwood set a newvolume record in 2018 of 29.8 million m3, up by6.2% over 2017. Export growth was due largely toChina, which was the largest consumer of Russiansawn softwood (58% market share of exports) in2018, at 17.3 million m3.

53,4

40,9

30,7

26,5

21,920,6

19,619,120,0

20,9

19,220,2

21,4

23,9

26,2

29,4

27,227,3

28,9

31,232,2

33,534,634,5

36,8

40,6

42,3

0

10

20

30

40

50

60

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

Sawn softwood

Sawn hardwood

Forest Products Trends & Developments. Market Discussions.

Page 16: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

Sources: WhatWood, Rosstat

Saw

n so

ftwo

od

an

d sa

wn

ha

rdw

oo

dTrade of sawn timber

16

Russia: sawn timber exports by country (million m3)

17,8

19,6 19,1

21,022,3

23,8

26,3

29,6

31,7

0

5

10

15

20

25

30

35

2010 2011 2012 2013 2014 2015 2016 2017 2018

Others

Kazakhstan

Estonia

Iran

Japan

Azerbaijan

Egypt

Uzbekistan

China

17,8

19,6 19,1

21,022,3

23,8

26,3

29,6

31,7

0

5

10

15

20

25

30

35

2010 2011 2012 2013 2014 2015 2016 2017 2018

Others

Vologda region

Komi

Khabarovskregion

Buryatia

Arkhangelskregion

Krasnoyarskregion

Irkutsk region

Russia: sawn timber exports by region (million m3)

Forest Products Trends & Developments. Market Discussions.

Page 17: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

Wood-based panels

Page 18: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

• The consumption of wood-based panels in Russia in 2018 was 12.8 million m3 (+ 12% year to year ).

• The growth of wood-based panels consumption was mainly due to an increase in the share of particleboard, plywood and OSB.

Wo

od

-ba

sed

pa

ne

ls: all p

rod

ucts

Wood-based panels market in Russia

Russia: wood-based panels consumption in 2000-2018, million m3 Russia: wood-based panels consumption in 2018, million m3

Source: WhatWood

18

MDF/HDF, fibreboard (dry-

process)2,43

Fibreboard (wet-process)

0,42

Plywood1,42

OSB1,50

Particleboard6,99

Others0,12

12,8 M m3

Forest Products Trends & Developments. Market Discussions.

Page 19: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

• In 2018, plywood production in Russia exceeded 4 million m3 for the first time in history, + 7.6% (y/y). The increase in volumes wasinfluenced by the stable wood supply of plywood plants (in comparison with the failed season of wood removal in Q3 2017) and thegrowth in production at enterprises engaged in investment projects.

• Аbout 90 plywood mills are engaged in the production in Russia. The average annual growth rate of plywood production in Russia overthe past 5 years was 4%, the industry average capacity utilization rate is 76%.

• Plywood consumption in the domestic market has remained at a minimum since 2010. In 2018, domestic consumption amounted to 1.42million m3, a slight increase of 2.8%.

Source: Federal Service of State Statistics, Custom declaration, WhatWood

Plywood sales for export and domestic market 1992-2018 (mln m3)Export Vs domestic consumption of plywood in Russia (mln m3)

Wo

od

-ba

sed

pa

ne

ls: ply

wo

od

Production and competitive environment: production in Russia

19

1,31,0

0,90,91,00,91,1

1,31,51,6

1,82,0

2,2

2,62,62,8

2,6

2,1

2,7

3,03,13,3

3,53,63,83,7

4,0

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

domestic

export

1,6 1,51,3 1,3

1,51,6 1,6

1,81,9

2,1

2,5 2,5

2,7

1,1

1,4 1,4

0,8

1,2

1,51,7 1,7

1,9

1,61,5

1,4 1,4

0,0

0,5

1,0

1,5

2,0

2,5

3,0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

export domestic

Forest Products Trends & Developments. Market Discussions.

Page 20: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

Wo

od

-ba

sed

pa

ne

ls: ply

wo

od

Plywood plants location

20

Source: WhatWood

Forest Products Trends & Developments. Market Discussions.

Page 21: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

In modern Russia plywood is more an export-oriented product. The share of sales in foreign markets in the last three years does not fall below 65%. In 2018, the share of exports is 67.

In 2018, due to the introduction of import duties, deliveries to Turkey fell sharply (-56% to 40 thousand m3). The USA increased purchases: + 22% to 412 thousand m3, Egypt: + 13% to 310 thousand m3.

Plywood export from Russia 1998-2018 (million m3) Plywood export from Russia in 2018 (,000,m3)

Wo

od

-ba

sed

pa

ne

ls: ply

wo

od

Plywood export

21

Source: Customs declarations, WhatWood

USA; 412

Egypt; 310

Germany; 236

Latvia; 110

Poland; 101Italy; 99

Great Britain; 100

Finland; 91Turkey; 40

Azerbaijan; 90

Netherlands; 87

Other; 1007

2,68 mln m 3

0,74

0,910,96

1,031,151,18

1,411,491,491,49

1,281,31

1,501,571,62

1,76

1,98

2,19

2,482,47

2,68

0,0

0,5

1,0

1,5

2,0

2,5

3,0

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

Other

Netherlands

Azerbaijan

Turkey

Finland

Great Britain

Italy

Poland

Latvia

Germany

Egypt

USA

Forest Products Trends & Developments. Market Discussions.

Page 22: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

Russia

China

Egypt + Turkey +MENA

Azerbajdzhan-+

Uzbekistan South Korea

225

120

393

3545

466

N. America

Baltic states

1294

Europe

Wo

od

-ba

sed

pa

ne

ls: ply

wo

od

Russia: the main plywood export flows in 2018

22

000.m3

+37% +4%

+3%

-5,3%

+10% +32%+64%

Source: Customs declarations, WhatWood

Forest Products Trends & Developments. Market Discussions.

Page 23: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

Russia: MDF / HDF export (mln m3)Russia: MDF / HDF import (mln m3)

Russia: MDF / HDF production (mln m3)▪ In 2018, MDF/HDF production increased by 6% to 3.1 million m3.

The main increase was provided by Kastamanu, Kronospan,Swiss Krono.

▪ The export of MDF/HDF, fiberboard from Russia has beengrowing for seven years in a row, in 2018: + 16% y / y to 1.2million m3. The basis of exports from Russia is base panels andlaminate flooring.

▪ MDF/HDF import in 2018 did not increase relative to 2017: 501thousand m3, + 1% y/y. Since 2014 the leading positions has theRepublic of Belarus: the share in total imports in 2018 is 39%.

Source: WhatWood

Wo

od

-ba

sed

pa

ne

ls: fibre

bo

ard

, MD

F/

HD

FProduction, export, import

23

0,2 0,2 0,3 0,3 0,3 0,40,6

1,2 1,21,0 1,1 1,2 1,3

1,1

1,9

2,2

2,6

3,03,1

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

0,060,040,070,100,14

0,26

0,350,420,39

0,52

0,78

0,41

0,60

0,87

0,980,950,97

0,590,54

0,500,50

0,0

0,2

0,4

0,6

0,8

1,0

1,2

1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Other

Switzerland

Belgium

Poland

Germany

China

Belarus

0,20

0,290,33

0,230,27 0,28 0,29

0,400,44

0,49

0,340,38

0,300,36 0,37

0,420,46

0,55

0,85

1,07

1,24

0,0

0,2

0,4

0,6

0,8

1,0

1,2

1,4

1 9

98

1 9

99

2 0

00

2 0

01

2 0

02

2 0

03

2 0

04

2 0

05

2 0

06

2 0

07

2 0

08

2 0

09

2 0

10

2 0

11

2 0

12

2 0

13

2 0

14

2 0

15

2 0

16

2 0

17

2 0

18

Other

Estonia

Poland

Germany

Tajikistan

Ukraine

Azerbaijan

Kyrgyzstan

Iran

Belarus

Romania

Kazakhstan

Uzbekistan

Forest Products Trends & Developments. Market Discussions.

Page 24: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

Source: open source,companies press-releaseNote: the size of the circle is proportional to the design capacity. Capacities are indicated, including for the production of MDF (fiberboard) of the dry production method

Announced projects

Current plants

Wo

od

-ba

sed

pa

ne

ls: fibe

rbo

ard

, MD

F/

HD

FFiberboard capacity map of Russia, Republic of Belarus, Ukraine

24Forest Products Trends & Developments.

Market Discussions.

Page 25: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

Source: WhatWood

Wo

od

-ba

sed

pa

ne

ls: OS

BRussia: Production, Consumption, Export, Import of OSB

25

0,0 0,1 0,2 0,2 0,8 9,1 17,2 27,5 37,0

123,0182,0

296,4214,2

281,8335,7

557,6

781,1819,5

907,8

1 045,7

1 313,21 506,3

-500

0

500

1 000

1 500

2 000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

00

0, m

3

Producrion

Export

Import

Consumption

First plant Hillman

Real Production

Forest Products Trends & Developments. Market Discussions.

Page 26: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

Announced

Plant in action

Source: WhatWoodNote: the area of the circle is proportional to the design capacity

Wo

od

-ba

sed

pa

ne

ls: OS

BOSB Implemented and planned investment projects

26Forest Products Trends & Developments.

Market Discussions.

Page 27: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

Russia: particleboard consumption in 1998-2018 (mln m3)

Russia: particleboard production in 1998-2018 (mln m3) Particleboard export and import in 1998-2018 (mln m3)

▪ 2018 was marked by the consumption increase ofparticleboard on the domestic market + 1 million m3 or +17%y/y. The growth occurred against the background ofproduction volume increase (+ 15% to 8.4 million m3).

▪ Since 2013, there has been a steady export increase. Exportfrom Russia have been growing for five years in a row, CAGR17% (in 2018: 1.75 million m3, +4.2%). Import in 2018increased compared to 2017 by 5.4% and amounted to 276thousand m3.

Source: Custom statistic,, Federal Service of State Statistics , WhatWood

Wo

od

-ba

sed

pa

ne

ls: pa

rticleb

oa

rdProduction and Consumption

27

1,62,0

2,3 2,5 2,73,2

3,63,9

4,7

5,55,8

4,6

5,4

6,6 6,8 6,7 6,5 6,56,9

7,3

8,4

0

1

2

3

4

5

6

7

8

9

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

1,62,0

2,32,7

2,9

3,43,8

4,1

4,9

5,55,7

4,1

5,0

6,16,3 6,3

5,95,5 5,5

5,9

6,9

0

1

2

3

4

5

6

7

8

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

0,11 0,10 0,14 0,13 0,16 0,19 0,24 0,26

0,31

0,48

0,37

0,55 0,55

0,80 0,79 0,78

1,01

1,27

1,55

1,681,75

0,18 0,110,15

0,24 0,290,38 0,41 0,45

0,52

0,43

0,300,12 0,16

0,270,33

0,39 0,390,29

0,23 0,26 0,28

0,0

0,2

0,4

0,6

0,8

1,0

1,2

1,4

1,6

1,8

2,0

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

export import

Forest Products Trends & Developments. Market Discussions.

Page 28: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

Source: WhatWoodNote: blue– indicated current pants, yeloow– announced projects, 2) the area of the circle is proportional to the design capacity (000, m3)

Wo

od

-ba

sed

pa

ne

ls: pa

rticleb

oa

rdParticleborad projects of new particleboard plants

28Forest Products Trends & Developments.

Market Discussions.

Page 29: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

Pulp and paper

Page 30: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

Pu

lp a

nd

pa

pe

rWood pulp

30

Sources: WhatWood

Russia: Wood pulp production (1000 tons)• The pulp and paper industry is growing in the CIS with increased investment, and the production and consumption of all major pulp and paper products rose in 2018. Paper and paperboard production grew by 3.8% in the subregion, to almost 10.7 million tones. The Russian Federation accounted for a large part.

• Wood pulp production in Russia increased by 0.9% in 2018 to 8.5 million tons.

• Ilim Group provides 78% of the market wood pulp.

7,6 7,67,1

7,57,9

8,2 8,4 8,5

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

9,0

2011 2012 2013 2014 2015 2016 2017 2018

Forest Products Trends & Developments. Market Discussions.

Pulp and Waste Paper Export Structure (mln ton) Paper and Board Export Structure (mln ton)

2,4 2,4 2,5 2,5 2,6 2,6

2,5 2,5 2,5 2,7

2,5 2,7 2,7 2,7

2,9 3,0 3,1 3,3

3,5

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

other

uncoated paperand board

uncoated kraftpaper andboard

newsprint

2,4 2,5 2,5 2,6 2,6

0,0

0,5

1,0

1,5

2,0

2,5

3,0

20

14

20

15

20

16

20

17

20

18

other

waste paper

sulphateunbleachedsoftwood pulp

sulphate bleachedhardwood pulp

sulphate bleachedsoftwood pulp

Page 31: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

Wood pellets

Page 32: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

Wo

od

pe

llets

Wood pellet mills location

13

Источник: WhatWood

Forest Products Trends & Developments. Market Discussions.

Page 33: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

Wo

od

pe

llets

Production and exports

32

Russia: Wood pellets production (million tons)

0,7 0,7

0,9

0,9

1,1

1,4

1,5

0,0

0,2

0,4

0,6

0,8

1,0

1,2

1,4

1,6

2012 2013 2014 2015 2016 2017 2018

Other

Lithuania

Germany

Finland

Netherlands

United Kingdom

Latvia

Italy

Sweden

Belgium

South Korea

Denmark

0,35

0,42

0,85

0,72

0,91

0,97

1,07

1,42 1,41

0,0

0,2

0,4

0,6

0,8

1,0

1,2

1,4

1,6

2010 2011 2012 2013 2014 2015 2016 2017 2018

Others

Leningradregion

Krasnoyarskregion

Irkutskregion

Arkhangelskregion

Russia: Wood pellets exports (million tons)

Forest Products Trends & Developments. Market Discussions.

Source: Custom statistic,, Federal Service of State Statistics , WhatWood

Page 34: Forest products developments in the Russian Federation · 2019. 11. 11. · Pulp and mechanical pulp Сardboard Roundwood Plywood Sawn timber Paper Chemical and mechanical wood pulp

Disclaimer and contact information

WhatWood – Timber Industry Analytics

Russia, Moscow

Phone: +7 985 939 85 52

E-mail: [email protected]

Website: WhatWood.ru/english

This information-analytical review is for information purposes only. The information and conclusions contained in this review were obtained and based on our own analysis and

on sources, which researchers consider reliable. However, WhatWood makes no warranties and makes no representations that such information is complete and reliable, and,

accordingly, it should not be regarded as complete and reliable. The conclusions and statements made in this review are only assumptions, which may differ materially from actual

events and results.

Unless expressly stated otherwise, this review is intended only for persons who are eligible recipients of this review in the jurisdiction in which the recipient of the review is

located and who can receive this report without its dissemination to such persons violating or being not conformed to the legislative and regulatory requirements of the said

jurisdiction. Accordingly, each recipient of this review is entitled to use the review only if he is an acceptable recipient.