Coniferous wood fuel market in Eastern Europe (including Northern Asia)

Earlier Report Observations

Production of coniferous wood fuel in Eastern Europe fell from 36 043 thousand m³ in 2018 to 29 764 thousand m³ in 2021, while the available market volume, recorded from 2020, dropped to 25 107 thousand m³ in 2021. This decline was linked to a reported reduction in timber harvesting volumes and the absence of significant new market players or launches of large production facilities, which maintained market stability before the onset of military conflict. The state-owned enterprise DP 'Lisy Ukrayiny' (Forests of Ukraine) remained the primary supplier of wood resources, shaping market operations.

The Russian military aggression in 2022 substantially impacted the timber market, causing significant losses and reduced activity. However, the market volume rose to 28 614 thousand m³ that year as exports plummeted from 5 166 thousand m³ in 2021 to 1 893 thousand m³, increasing wood availability domestically. The same year saw the formation of DP 'Lisy Ukrayiny' from state forestry enterprises, cementing its dominant role, and parliamentary consideration began for a draft law 'On the Timber Market' to regulate the sector.

In 2023, market volume declined to 26 037 thousand m³ and production fell to 26 052 thousand m³. Assortment plans of DP 'Lisy Ukrayiny' envisaged a 3.4% cut in timber harvesting, contributing to lower supply, while no major new entrants or capacity expansions occurred. For 2024, although full market volume data is unavailable, the state company's role continued with a planned harvesting reduction, and a 10-15% price drop for wood pellets on the domestic market pointed to growing competition. Prices for wood fuel also rose due to seasonal demand and logistical challenges, though diversified supply routes helped avert a fuel crisis.

Production coniferous wood fuel in Eastern Europe (including Northern Asia)

In kind, 2017-2020, K m³

Top producers of coniferous wood fuel, 2017-2020

World map of production of coniferous wood fuel, 2017-2020

Eastern Europe (including Northern Asia) saw its coniferous wood fuel production decline for the second year in a row. In 2020, the region produced 32 166 K m³, marking a 2.4% decrease from the previous year. Looking at the period from 2017 to 2020, production overall increased by 5.4%, with an average annual growth rate of 1.8%. The highest production level was recorded in 2018 at 36 043 K m³, which also saw the largest annual increase of 18.2%. In contrast, 2019 experienced the most significant decline, with production dropping by 8.5%.

Annual dynamics of production in Eastern Europe (including Northern Asia) in kind, 2017-2020, K m³

Exports coniferous wood fuel from Eastern Europe (including Northern Asia)

Exports in kind, K m³

Eastern Europe (including Northern Asia) experienced a third consecutive year of growth in coniferous wood fuel exports. In 2020, the region exported 6 750 K m³, showing a strong year-over-year increase of 10.4%. From 2017 to 2020, exports surged by 63.7%, translating to an average annual growth rate of 17.8%.

Annual dynamics of product's exports from Eastern Europe (including Northern Asia) in kind, 2017-2020, K m³

Between 2017 and 2020, Finland, Lithuania, and Latvia were the top destinations for coniferous wood fuel exports from Eastern Europe (including Northern Asia). Finland accounted for 39.2% of exports in kind, Lithuania for 10.9%, and Latvia for 8.8%. Together, these three countries made up 58.8% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Eastern Europe (including Northern Asia) in kind, 2017-2020

Exports in value, M $ US

In 2020, Eastern Europe (including Northern Asia) exported coniferous wood fuel worth 236.3 M $ US, reflecting a modest increase of 2.1% compared to the previous year. Over the 2017-2020 period, export value grew by 49.6%, with an average annual growth rate of 14.4%. The largest decline occurred in 2019, with a drop of 1.2%, while the most significant increase was in 2018, with a rise of 48.2%.

Annual dynamics of product's exports from Eastern Europe (including Northern Asia) in value, 2017-2020, M $ US

From 2017 to 2020, Finland, Lithuania, and Austria led the structure of coniferous wood fuel exports in value terms. Finland contributed 49.1% of export value, Lithuania 7.5%, and Austria 7.0%. Combined, these three countries represented 63.7% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Eastern Europe (including Northern Asia) in value, 2017-2020

Imports coniferous wood fuel to Eastern Europe (including Northern Asia)

Imports in kind, K m³

The import market for coniferous wood fuel in Eastern Europe (including Northern Asia) showed an unstable trend over the period. Imports reached their lowest point in 2019 and peaked in 2020, with a 2.8-fold difference between these years. In 2020, imports totaled 686 K m³, a sharp increase of 170.2% from the previous year. The largest decline was recorded in 2019, with a drop of 25.6%.

Annual dynamics of product's imports to Eastern Europe (including Northern Asia) in kind, 2017-2020, K m³

During 2017-2020, Germany, Lithuania, and Austria were the three principal sources for coniferous wood fuel imports into Eastern Europe (including Northern Asia). Together, they accounted for 7.7% of total imports in kind.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Eastern Europe (including Northern Asia) in kind, 2017-2020

Imports in value, M $ US

Eastern Europe (including Northern Asia) saw its coniferous wood fuel import value decline for the second consecutive year. In 2020, imports amounted to 59.9 M $ US, a decrease of 30.6% from the previous year. The highest import value was recorded in 2018 at 93.1 M $ US, which also saw the largest annual increase of 54.3%.

Annual dynamics of product's imports to Eastern Europe (including Northern Asia) in value, 2017-2020, M $ US

From 2017 to 2020, Germany, Lithuania, and Austria were the main destinations for coniferous wood fuel imports in value terms to Eastern Europe (including Northern Asia). Germany accounted for 6.5% of import value, Lithuania for 3.2%, and Austria for 2.3%. Together, these three countries made up 12.0% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Eastern Europe (including Northern Asia) in value, 2017-2020