Although the Russian president amassed troops at the Ukrainian border weeks before the invasion, few people could imagine that war was actually going to happen. This war damages the post-pandemic recovery effort of countries worldwide and significantly affects lumber prices across the entire globe. That’s because Russia is a large exporter of lumber and forestry products.
If you’re wondering why and how exactly the price of lumber is affected by the war then you should read this article. You’ll discover the big picture of this war and how lumber prices might be impacted in the upcoming months and years.
Russia Is the Largest Exporter of Lumber
Russia stretches over vast distances and it has impressive lumber resources that are exported worldwide. In fact, Russia is one of the largest exporters of lumber and forest-related products. It delivers massive amounts of paper products, timber, logs and similar goods that can be used in construction projects by countries in Europe and Asia.
The Invasion Dramatically Increased Lumber Prices
Since the Russian armies are busy trying to occupy Ukrainian territories, the prices of lumber increased dramatically in the last couple of months. War itself consumes a lot of resources and it takes a lot of effort, time and manpower to sustain. As a result, everything else becomes more expensive to produce and ship, particularly lumber and forestry products.
Western Sanctions Could Cause a Higher Increase in Price
In response to the Russian invasion of Ukraine, a plethora of European and Western countries have imposed drastic sanctions on Russia and its leaders. This is meant to discourage the Russian government from continuing the war and reducing the amount of money sent to Russia that can be used to sustain military efforts against Ukraine.
These sanctions are not seen with good eyes by Russian leaders and as a result, they could ask for even higher prices on important goods such as natural gas, oil and lumber products. It is expected for lumber and forestry products’ prices to increase even more in the upcoming months as the war doesn’t show signs of stopping any time soon.
Home Improvement Efforts Could Be Delayed in the US
The United States is also importing lumber products from Russia and construction projects are definitely affected by the surging lumber prices. Last year, the Russian lumber and forestry products industry was valued at nearly $12 billion. As a consequence of the war, this number can go up but fewer goods might be imported as the price of each lumber product will increase. As a result, the construction industry in the US and worldwide might slow down significantly until the situation becomes more stable in Eastern Europe.
As you can see, Russia’s invasion of Ukraine did a lot of harm to the global economy and put a significant dent into the development of construction industries. US Framing is aware of the negative consequences of the Eastern European war and does everything it can to continue its operations in the United States. Contact one of our specialists today to find out more about current lumber prices and how we can help you with your construction project.
