A sudden increased global demand and higher prices for Canadian logs, lumber, pulp and wood pellets could result from a dramatic disruption in wood markets, due to Russia’s invasion of Ukraine.
The Western world has moved with swift and dramatic sanctions against Russia for its invasion of Ukraine.
Russia is a commodities giant. In addition to being a major oil, natural gas and potash producer, it is also a major exporter of logs, lumber, pulp and pellets.
But economic sanctions being taken by both governments and the private sector (i.e. buyers) could suddenly throttle Russian forestry product exports, forcing buyers to seek new suppliers.
“Increased sanctions against trading with Russia and difficulty with financial transactions will probably interrupt and re-direct shipments of forest products throughout the world,” WRI Market Insights notes in brief…read more.