Lumber prices have increased 14% since Russia invaded Ukraine in late February, growing to $1,452 per thousand board feet, 15% below the all-time peak, Markets Insider reported.
The attack on Ukraine sparked numerous Western sanctions designed to pressure Russia into calling off its war effort.
Lumber prices have been volatile since the pandemic and peaked at $1,711 per thousand board feet in May 2021. Russia is the largest exporter of lumber in the world, according to Markets Insider, and forest-product exports in the country exceeded $12 billion in 2021.
Ukraine’s Ministry of Environmental Protection and Natural Resources recently called on the EU to ban imports of Russian forest and wood products to further hit Russia financially. The Forest Stewardship Council (FSC) announced last week that it will suspend all trading certificates in Russia and Belarus and will block all controlled wood sourcing from the two countries.
“This means that wood and forest products from Russia and Belarus cannot be used in FSC products or be sold as FSC certified anywhere in the world, as long as the armed violence continues,” the FSC stated. Välinge Innovation AB also announced it would no longer do business in Russian and Belarusian markets due to the invasion.
The ongoing war and potential additional sanctions will likely continue to impact global wood trade in the upcoming months, the Decorative Hardwoods Association reported.
