Lumber prices in Russia have increased by 11% to 14% year-over-year, depending on the specification, according to the new issue of the Russian Lumber Industry Insights report. This growth is driven by high raw material costs due to an unusually warm winter, labor shortages, and disruptions in the state monitoring system for timber and lumber sales (FGIS LK). Persistent logistics issues have also contributed to price increases.
Housing construction in Russia has been declining for four consecutive months. In January, completions fell by 10% compared to January 2024 and dropped 19% from the previous month.
Transportation costs for lumber exports have also risen. Over the past year, the average cost of delivering one ton of lumber by rail increased by 16% to China, 18% to Uzbekistan, and 7% to the port for Japan. In March, further price hikes are expected due to new regulations requiring freight carriers to install ERA-GLONASS navigation systems, the Russian analogue of GPS, and restrictions on self-employed individuals providing transport services. However, in February, some logistics companies began lowering prices, fearing that Western firms could soon re-enter the market.
The February 2025 issue of the Russian Lumber Industry Insights report highlights these challenges, noting that ongoing supply chain disruptions and regulatory changes will continue to impact prices and the construction sector in the coming months.
