Sanctions have left Russian lumber exporters without access to European and U.S. markets since 2023. While domestic demand and niche export markets initially supported Russian sawmills, conditions worsened in the second half of 2024 as the Russian government cut mortgage programs, leading to a decline in construction. Housing construction volumes in Russia fell by 2.7% in 2024, marking the first decline in five years. Despite this, domestic lumber consumption increased by 0.9%, though this growth is unlikely to continue in 2025 due to the end of preferential mortgages. These insights are detailed in the Russian Lumber Industry Insights – January 2025 report.

Russian lumber exporters had expected increased shipments to China, but softwood lumber imports into China weakened in the second half of 2024. Despite government measures to support the real estate sector, completed construction in China declined by 23%, while real estate sales dropped 13% to 2009 levels. This downturn pressured both consumption and imports of softwood lumber, leading to a 7.3% decline in overall Chinese softwood lumber imports, with Russian shipments decreasing by 5%. Economic challenges in China are expected to persist in 2025, compounded by tightening U.S. trade policies.

The Russian Lumber Industry Insights – January 2025 provides over 60 pages of analysis on Russia’s lumber sector, highlighting key weaknesses and strengths. The report details how sanctions, declining construction, and slowing Chinese demand are weakening Russia’s position in global lumber markets. At the same time, it explores strengths such as Russia’s ability to shift exports to niche markets, domestic price adjustments, and infrastructure developments. The report covers Russian production, domestic demand, export flows to Japan, Egypt, Kazakhstan, Uzbekistan, India, Europe, and North America, as well as Russian price indices, export trends, and railroad freight rates.

Find out more about the latest developments in Russia’s lumber industry, key export markets, and price movements in the Russian Lumber Industry Insights – January 2025 report. Get your copy today for a detailed look at how sanctions, shifting trade routes, and economic challenges are reshaping the market.