WHAT WILL RUSSIAN LOG TAX MEAN TO THE CANADIAN INDUSTRY?
Many BC forest companies are hoping for increased interest in their products from Asian countries that could soon be priced out of the Russian market thanks to a pending increase it its log export tax. The hope is that the Russian tax, which will increase to 80% from 25% on January 1, could help tighten supply and stop the downward spiral of lumber prices. A report released last week by the International Wood Markets Group said Russia’s increased log export tax has already led to mill closures in Finland and the Baltics and will create a huge supply gap for China, a major importer of Russian logs. The report suggests BC companies will benefit from “dramatic shortages and soaring raw material prices” as countries such as China search for a new supply of logs, lumber, pulp and other wood products. Log exporters, such as coastal company TimberWest are already seeing the benefits, but others, including the USW, are concerned that the result will be a further expansion of raw log exports, w
