In percentage terms, Russia and Ukraine did not play such a major role in European timber imports, but they supplied very specific components and goods like bed lamellas and pallets, writes Le Figaro. Therefore, the current situation, with Ukraine’s economy and logistics disrupted and sanctions imposed on Russia, is also affecting European furniture production.
It may be hard for the French to sleep in the near future, writes Le Figaro. But it’s not so much about economic or political problems, but about the fact that French furniture makers are short of wood for bed lamellas. As they explain, they mainly used lamellas made in Ukraine. Although there is no embargo on Ukraine, the Ukrainian economy is completely disorganised and all logistics are disrupted. As a result, France has felt the shortage of these components for the production of beds.
But the problems do not stop there, the author of the article notes. Russia is an important exporter of not only gas, oil and aluminium, but also timber. It has more than 800 million hectares of forest, 20% of the world’s reserves. But exports have been halted because of sanctions. While the sanctions are not yet in full force, contracts signed before April 9 may be executed until July 10. But after that all imports from Russia will be stopped.
Meanwhile, huge volumes were coming from Russia: last year Moscow exported 30.6 million cubic meters of sawn timber. However, Europe is not the main market for Russia: only 5 million cubic meters of this volume went to Europe, of which 300 thousand cubic meters – to France. This is only 3% of France’s demand for sawn timber.
So there will be no wood shortage in Europe, says the author of the article, but there is a risk that there will be a deficit of some specific products. For example, coniferous timber which is supplied to the French market by Russia at 20-25%. Problems can occur with the birch timber but this is a very small market although it is very much concentrated in Russia.
But all the experts interviewed by the publication say that the problems will be with the production of pallets – they are made in Ukraine. However, some European producers are reorienting their production to pallets, especially as prices are rising and making this area commercially attractive.
From January to April, the price of chipboard rose by more than 20%. As a result, compared to 2019 prices, current wood prices are 200-250%. So far, furniture manufacturers have managed to pass the burden of higher prices on to their customers, but it is unclear how long this will last. They are already seeing a slowdown in the economy, which suggests that they will no longer be able to raise the price of the final product, writes Le Figaro.
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