Business asks to impose restrictions on the export of wood raw materials in order to keep prices for building materials down. The Association of Furniture and Woodworking Enterprises of Russia (AMDPR) will soon contact the government with such an initiative. The organization believes that it is worth introducing duties on the export of veneer and prohibiting the export of logs from which plywood is made. Over the past year, sales of this material abroad increased by almost 200%, which led to a deficit in the domestic market and a rise in price by 2.5 times, the AMDPR noted. The proposed measures are likely to mitigate the situation, but may lead to an increase in gray timber exports.

Stop for removal

The difference in exchange rates resulting from the coronavirus crisis created a high demand for building materials from Russia, Alexey Mostovshchikov, a member of the General Council of Delovaya Rossiya, told Izvestia. Including the export of wood raw materials – birch veneer and logs, from which plywood is made – has grown significantly – by 200% over the year, told in AMDPR. This led to a shortage of plywood semi-finished products and an increase in their prices by 2.5 times., plywood itself has risen in price this year by more than 150%, the organization noted.

Plywood is used for cladding and finishing works in construction, creating formwork for pouring foundations, walls, ceilings, scaffoldings on which high-rise work and operations are carried out in the construction of private houses, added to the association. Wood prices are now 25-30% higher than in January 2021, and private houses have risen in price by 1.5 times over the same period, said Tatyana Gigel, a member of the Federation Council Committee on Agrarian and Food Policy and Environmental Management. According to her, first of all, this affected private construction; plywood is used to a lesser extent in the construction of apartment buildings.

Photo: Izvestia / Alexey Maishev

In order to keep prices down, AMDPR considers it necessary to introduce restrictions on the export of wood raw materials, in particular, duties on the export of veneer sheets and a ban on the export of plywood logs.… The organization will soon contact the government with such an initiative, the association told Izvestia.

This measure will help to curb the rise in prices on the domestic market, since the deficit always stimulates the rise in prices.… If we reduce the deficit of logs and veneers in the domestic market, then prices for plywood will also be kept in check, ”Timur Irtuganov, Director General of AMDPR, told Izvestia.

Plywood, along with MDF and chipboard, is also used for furniture production, said Alexander Shestakov, General Director of the First Furniture Factory. Its rise in price reduces the profitability of production, he added.

According to Aleksey Kanaev, a member of the State Duma Committee on Industry and Trade, it is necessary to ensure the deepest possible processing of wood within the country, since this gives taxes to the budget, jobs… Therefore, it is advisable to consider the possibility of limiting the export of veneer and veneer logs – through the introduction of duties or export quotas, the parliamentarian said.

Help “Izvestia”

According to the Strategy for the Development of the Forestry Complex of the Russian Federation, by 2030 it is necessary to increase the contribution of the forest industry to the country’s economy and the share of Russia in the world market of forest products. From January 1, 2022, a ban is introduced on the export of roughly processed and unprocessed valuable deciduous and coniferous wood from Russia. Together with the restriction on the export of unprocessed timber from January 1, the authorities will introduce a protective duty on sawn softwood and deciduous species with a moisture content of more than 22% – oak, beech, ash. The Ministry of Finance proposed setting rates for pine sawn timber at € 200 / sq. m, oak – € 370 / sq. m, from beech – € 250 / sq. m, ash-tree – € 300 / sq. m. As Izvestia wrote, the subcommittee on customs regulation supported the proposal of the department.

– Since there is now no ban on the export of soft wood species – birch, aspen, it is advisable to consider introducing a ban on the export of such raw materials from regions where there are processing facilities and logistics are established. And thus to provide the domestic manufacturer with raw materials for the production of plywood, – said Tatiana Gigel.

Izvestia sent inquiries to the government, the Ministry of Industry and Trade and the Ministry of Finance.

Inevitable growth

A sharp increase in the cost of building materials led to an inevitable rise in the price of wooden house kits – if earlier prices for them grew by 10-15% per year, now this jump took place in just six months, Vladimir Koshelev, First Deputy Chairman of the State Duma Committee on Construction and Housing and Communal Services, told Izvestia. The cost of wood may increase by another 10-15% in the foreseeable futurehe noted.


Photo: RIA Novosti / Pavel Lisitsyn

According to Alexey Mostovshchikov, the measures proposed by AMDPR will reduce the plywood shortage, but may provoke the development of “gray” schemes for the export of products… The problem of deficit should be solved by increasing production and introducing monitoring systems for the sale of construction products, the expert is sure. Digital technologies can not only prevent the “gray” export of materials, but also fight counterfeiting and falsification, he thinks.

To develop the construction industry and increase the affordability of housing, it is necessary to develop the resource base and increase competition in the segment of basic building materials, to build effective supply chains within the country to reduce transport costs in the cost of production and create a shortage of one category or another, the head of the suburban real estate center of the federal company Etazhi »Anton Saukov.

Over time, the growth of the woodworking industry, associated with a ban on the export of rough and unprocessed wood of valuable deciduous and coniferous species, will help eliminate the shortage of building materials, which heats up prices., and to stabilize the situation on the market, said the head of the supply department of the development company “Marmax” Alexander Bogdanov.

Nevertheless in the next two to three years, both finished houses and land may continue to rise in price, believes the managing partner of “VectorStroyFinance” Andrey Kolochinsky. The fact is that the interest of Russians in private houses will be fueled by measures of state support in the form of preferential mortgage programs for them, he explained.

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