Ruble devaluation hurting North America
Jan. 14, 2015 – The devaluation of the Russian Ruble is having a negative impact on lumber exports bound for the Chinese market.
According to the latest report from Wood Markets International, the Russian ruble has devalued from approximately 30 rubles per US dollar at the start of 2014, to over 55 in mid-December, and additionally to over 60 in early January this year.
This huge devaluing of the ruble has had an enormous impact on log and lumber prices in China wholesale markets; especially for the softwood species, making it a tough year in 2014 with 2015 starting even more off balanced.
A weakening ruble during the second half of 2014 has created a better competitive advantage for Russian logs and lumber in the Chinese market, especially in Northern China markets, such as Dalian, Tianjin, and even Qingdao ports. Russian timber is taking back some market share from SPF lumber and especially logs from New Zealand, North America and European countries.