Forestry Investment – Prices for timber being traded at the Russian/China border of Suifenhe have increased significantly according to new reports.
The price hike has been attributed to several factors including seasonal variations, increases in Russian export tax and a clampdown on the illegal trafficking of timber.
Prices of oak timber passing through the Suifenhe border checkpoint have risen by 400-750 yuan (£35-£66) per cubic metre as of July. Prices of other timbers, including Manchurian ash, also increased, by around 200 to 400 yuan per cubic metre.
Less timber has been passing through the checkpoint, which may have affected the prices being charged. Figures show that a total of 2.33 million cubic metres passed through the checkpoint for inspection purposes during HY1, which was a 38.5 per cent reduction on the same period the year before. The value of this wood was $282.15 million, 46 per cent down on the value of the timber processed at the checkpoint during the same period last year.
Russia has become a principle supplier of timber to China, which is seeing shortages emerge as a result of the government’s attempts to protect the indigenous forests.