Russian production of wood-based panels falls to level of twelve years ago due to sanctions

In 2022, the production of particleboard and OSB in Russia decreased by 10.5%, to 10.3 million m3, and this of fibreboard and MDF declined by 12.1%, to 649 million m3. Plywood output fell by 28.8% to 3.24 million m3. The reason for the decline in the production of wood-based panels was the closure of the main export destinations due to European sanctions, as well as a drop in demand in the domestic market.

Plywood manufacturers have been the hardest hit as exports and prices plummet. “In November 2022, Russian plywood mills reached a ten-year low in terms of output and returned to 2010 levels,” said Timur Irtuganov, director of the Russian association of furniture and woodworking industries.

If the current conditions persist, the decline in the production of wood-based panels will continue this year. In 2023, the production of chipboard in Russia will decrease by 8%, while the production of fiberboard and plywood will fall by another 14%. This will throw the industry back to the level of 2006, that is, 15 years ago.

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