Russian plywood prices rose 22% in 2011

Russian business consulting website reported that according to research data on the status quo and outlook of Russia's wood-based panel and plywood market launched by the research team of Ntesco Research Group, the scale of plywood in the Russian construction market increased by 28.4% in 2011. The positive development of the market is first of all related to the actual income of residents. The increase is related to the construction of new buildings. Builders use only domestic plywood, chipboard and fiberboard.

The conditions of the housing construction market and the furniture production market have a direct impact on the wood-based panel and plywood markets, because most of the wood processed products are used in these construction areas. Considering that residential buildings account for more than 60% of new construction, the growth rate of this market will determine the overall growth rate of corporate customers' demand for building materials.

The average ex-factory price of Russian plywood in 2011 was determined at 16,412 rubles per cubic meter. The price of plywood production rose by 22% compared to the previous year. Prices began to fall back in 2012. In March 2012, the average ex-works price of plywood fell to 303 roubles per cubic metre, which was related to the seasonality of wooden house construction and the decrease in demand for furniture during the first few months of the year. Experts predict that plywood prices will increase.