Russia and Ukraine conflict has been started on 24th Feb 2022 and it has already happened for 1 month and there's no sign of the war will be ended in a short time. When Russia is one of the largest suppliers of wood products and plywood in the world, the global supply chain must be changed.
Making up more than 10% of the global supply of wood materials, the ongoing Russia-Ukraine conflict along with the sanctions on embargoes imposed on Russia by the United States and the EU will have a strong impact on the global wood processing and export industry. In short term, it will definitely affect the wood supply on a global scale, especially with species like Polar, Birch,… The FSC International Board of Directors has agreed to suspend all trading certificates in Russia and Belarus and to block all controlled wood sourcing from the two countries. This means that wood and forest products from Russia and Belarus cannot be used in FSC products or be sold as FSC certified anywhere in the world as long as the armed violence continues.
The oil price is skyrocketing as the Russia-Ukraine conflict escalates. Oil supply from Russia accounts for 7% of world supply. As a result, the goods price from all over the world is increasing and plywood is not an exception.
The invasion of Ukraine by Russia and sanctions imposed on it for doing so and new pandemic-related shutdowns in China are the latest events to rock global supply chains. Combined with the China-U.S. trade war and other pandemics- and climate-related disruptions, it is certain to accelerate the movement by Western companies to reduce their dependency on China for components and finished goods and on Russia for transportation and raw materials and to lead to more localized, or regional, sourcing strategies. If China decides to back Russia in the Ukraine conflict, it would only fuel that movement. In the Plywood industry, we can see an obvious trend that many Europian Plywood Importers are now finding new supply sources such as Vietnam, Malaysia, Indonesia,... FOMEX GROUP.