On April 19, to support Russian timber enterprises, the Russian Ministry of Industry and Trade proposed: that until the end of this year, the export of sawn timber with a moisture content of more than 22% will be exempted from export tax. It is worth noting, however, that the measure does not apply to rough-finished wood with a thickness of more than 10 cm, as well as oak, beech, and ash planks.
Russian timber accounts for about 20% of global industrial log exports, and its timber is mainly exported to countries such as China, Japan, South Korea, and Finland. Since last year, the Russian government will impose a 10% export duty on some rough-processed wood, such as wood with a humidity exceeding 22% and a thickness and width of more than 10 centimeters.
Changes in tariffs are an important factor in determining the price of timber, which has led to a sharp rise in the export price of Russian timber, and many timber importing countries have begun to choose alternative sources of timber from other countries.
If the export tariff is zero, it will greatly reduce the trade cost of my country's import of Russian timber. One of the most obvious is the stimulation of timber exports. Without tariff barriers, domestic timber exporters can benefit from increased export volumes, and consumers can spend less on importing Russian timber.
But it remains to be seen whether the export tax exemption will trigger a new round of slump in lumber prices. Although the Russian Ministry of Industry and Trade made a recommendation to the Ministry of Economic Development, the ministry did not respond to the request. It is understood that the initiative may face resistance from customs.
As far as the current situation is concerned, Xiaolan predicts that after the export tariff is passed to zero, it is unlikely that the timber will be significantly reduced, but the export volume of some timber species will increase.
This is because there are many uncertain factors such as the current international situation and shipping conditions, and the market price is still supported to a certain extent, and the overall rate of decline will slow down.