Monday, December 21, 2009

Log Costs Fell in Russia in The 3Q/08 as The Forest Industry Cut Back Production, Reports WRI

The Russian balk bazaar has gone through a roller coaster ride the accomplished year, with log costs extensive almanac highs in the 4Q of endure year and again falling to two-year lows in the 3Q/08. Topping off the affecting contest was the advertisement by PM Putin endure anniversary that the long-awaited log consign tax, which would about cease log exports in January, will be adjourned for 9-12 months.

The Russian abridgement started to apathetic in the 3Q with a abatement in apartment constructions and bargain appeal for barge both domestically and in the consign market. So far this year, barge assembly is down about 7% and logging has beneath by about 9% compared to endure year. Spruce sawlog prices fell by about 7% in the 3Q, while ache log prices added hardly because the ache barge consign bazaar was still analytic breath aboriginal in the quarter. A connected slowing in the assembly amount in the sawmilling area in the advancing months is acceptable to aftereffect in added declines in sawlog prices this winter, even with the adjournment in accomplishing of the log consign tax access (previously appointed to access to Euro50/m3).

Softwood pulplog prices in northwest Russia fell by 13% in the 3Q to their everyman akin back aboriginal 2007. With slowing appeal for calm copse cilia and bargain burning of copse cilia in Finland, the better consign bazaar for Russian logs, it is apparent that pulplog costs will abide to abatement hardly next year.

It is not to be accepted that backwoods companies which accept relied on softwood logs from Russia will abruptly change their long–term accretion action of abbreviation their assurance on Russian copse based on the afresh appear concise adjournment in the backpack of the Russian log tax. Softwood log shipments from Western Russia to Finland will apparently abide to abatement as Finnish companies are accepted to absorb beneath in 2009, calm copse and imports from added countries about the Baltic Sea will be commissioned for Russian logs. The above account for companies application Russian logs is that the alteration aeon for acceptable absolute of this antecedent has been abiding by a few months.

Global pulpwood and sawlog bazaar updates are included in the 50-page advertisement Wood Resource Quarterly. The report, accustomed in 1988 and with readers in over 20 countries, advance copse prices in a lot of regions about the apple and aswell includes approved updates of all-embracing timber, pulp, barge and biomass markets.

Contact:
Hakan Ekstrom
Wood Resources International
P. O. Box 1891
Bothell, WA 98011
142-540-28809
info@wri-ltd.com http://www.woodprices.com

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