Russian Ministry of Economic Development Published Report on Timber Industry in January-July period, 2009

The production index of the wood processing and manufacturing of wood products in January-July 2009 amounted to 74,7 percent in pulp and paper industry, 83,8 percent in publishing and printing activities, including publishing and printing and reproduction of recorded media of 75,2 percent, pulp, wood pulp, paper, paperboard and articles – 91.7 percent compared to the previous period in 2008.

Timber industry is characterized by high export orientation (more than 45 percent of exported production), which puts the industry in a significant dependence on the external environment.

Due to the changing situation on foreign markets (including market saturation, declining demand and prices for wood products), a number of factories stopped production and shipment of products that resulted in a significant decrease in production volumes.

As a result of growth of quality wood products from Canada supplies to Western European markets, there is an evident decline of Russian manufactured products demand.

In January-July 2009 compared to the corresponding period in 2008 there was a decrease in output of solid fiberboard (- 37,7%), chipboard (- 29,7%), plywood (- 29,2%), timber (- 17,3%), doors and windows blocks (- 32,6% and - 48,1%) and some types of wood packaging.

Reducing the volumes of pulp, wood pulp, paper, paperboard and articles producing (- 8.3%) in January-July 2009 due primarily to the reducing of pulp products production (-19.9%). It was caused by falling demand from main consumers of the market pulp, as well as by decreasing of the cardboard (-12.2%) and paper (– 7.4 %) production.

On foreign markets the reduced demand for pulp and paper products from the major consumers (China, USA, EU) was caused by the reorientation of the major producers on the supply of South American eucalyptus pulp.

The decrease in publishing, printing and reproduction of recorded media production in January-July 2009 was 24.8 percent compared to the corresponding period of 2008 due to reducing of magazines (– 32.2%), books and brochures (–28, 0%) and newspapers (– 23.5 per cent) production.

Major products producing volumes in 2009

Informational resources: Russian Forestry Review