Thursday, May 23, 2024
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China serves as the world’s manufacturing powerhouse, but its growing dependence on Russian timber poses a significant risk to the global supply chain for plywood products, both directly and through secondary processors. Russia is ramping up plywood production, with exports to China surging more than 344%, according to new data provided by Roslesinforg – the Russian state-owned customs agency.
The latest figures follow China Customs’ report of a threefold increase in exports to China in March. This comes just months after the US Department of Agriculture reported an 86% drop in Russian imports in February. Additionally, Russian plywood exports to the US continued to decline in March and April.
According to China Customs, over 36,400 cubic meters of plywood—accounting for more than 90% of the country’s total plywood imports—originated from Russia in April 2024. This marks an increase from 32,000 cubic meters in March and 9,500 cubic meters (68% of the total plywood imports) in March 2023.
China is by far the world’s largest producer of plywood, with 9,800 manufacturers producing over 100 million cubic metres of plywood—more than 70% of the world’s total output—before selling it into international markets. However, in recent years, environmental groups have flagged concerns that China is operating as a broker for Russian and Belarussian timber, with plywood made from Russian birch entering European markets via China, Vietnam and a series of “friendly countries” across Eurasia.
It remains unclear how much of this plywood and lumber is entering global markets and violating sanctions imposed by the UK, European Union, and several Western countries following Russia’s invasion of Ukraine.
An investigation by the International Consortium of Investigative Journalists (ICIJ) last year revealed that over 100,000 tonnes of lumber linked to Russia and Belarus were being routed into the EU trading zone through ten allied nations, including China.
Source: Wood Central
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