Lumber prices rose in November as demand in the U.S. market increased and then spread to Europe. Rising prices aren't just affecting home renovations, but have bigger consequences, and in recent years, the construction industry has begun to change its strategy, looking to experiment with wood for a smarter climate.
Russia is the world's largest exporter of timber, with about 30 million cubic meters, more than half of which is exported to China. There are also large imports from the Western world and Europe. The Russia/Ukraine/Belarus region exported a total of 8 million cubic meters to Europe. There is currently a clear shortage of wood products and there is no way to replace them in the short term.
The shortage of timber certainly has the potential to cause a downturn in the construction industry, which in turn has a huge impact on an economic slowdown.
