Russia is gaining a foothold in the MENA region

Article by Gerd Ebner (translated by Eva Guzely) | 24.10.2024 - 12:12

In the first half of 2024, the MENA region imported 5.1 million m³ of softwood lumber, which corresponds to a year-on-year decrease of 7%.

The two main suppliers, Sweden and Finland, recorded the biggest decrease of 11% and 19%, respectively. Together, they shipped 2.4 million m³ of softwood lumber to the region this year, accounting for 46% of total MENA imports. Last year, their share was 51%.

Less from Scandinavia, more from Russia

While Scandinavian shipments decreased, other countries were able to increase their deliveries. The Holzkurier’s editorial team estimates that Russia exported 920,000 m³ (+3%) to the region so far this year. Exports from Austria to the MENA region saw a particularly sharp increase of 20%, which brings the total to 470,000 m³.

Softwood lumber exports to the MENA region | H1 2024
Vertical: Exporter / Horizontal: Importer
Shipments of the biggest global softwood lumber exporters to North Africa and the Middle East (in 1,000 m³)
Countries	Egypt	Saudi Arabia	Morocco	Algeria	UAE	Israel	Iraq	Tunisia	Other MENA countries	Jan–Jun 2023	Jan–Jun 2024	Diff. in %
Sweden	643	142	196	150	1	24	0	29	76	1,422	1,261	–11
Finland	468	185	106	112	0.1	164	0.2	47	37	1,383	1,120	–19
Russia	290	n/s	n/s	n/s	n/s	n/s	103	n/s	527	890	920	3
Austria	3	101	45	100	76	8	1	7	128	390	468	20
Romania	4	68	7	1	94	8	15	0	74	230	270	17
Germany	23	47	17	50	58	8	3	0.1	40	305	245	–20
Brazil	1	57	8	0	56	3	0	0	17	172	142	–17
Chile	0	66	0	0	46	0	0	0	28	137	141	3
Canada	6	18	0.2	0	19	0	3	0	9	54	55	2
USA	9	1	0.4	5	1	1	0	2	4	18	23	28
EU (excl. Top 5)	114	78	100	33	45	45	0	9	57	519	481	–7
Total	1,562	762	479	449	398	260	124	95	997	5,520	5,125	–7

Sources: AT: Statistik Austria; other EU countries: Eurostat; BR: Comex Stat – MDIC; CA: Statistics Canada; CL: Ministry of Agriculture (Minagri – Chile); US: United States Department of Agriculture; RU: Holzkurier estimate. Product groups (HS codes): 440711, 440712, 440713, 440714 and 440719. Austria does not have ports of its own and therefore ships its softwood lumber to the MENA region via ports in Slovenia and Croatia. The applied model also takes Austrian exports to these two countries into account. These exports were deducted from Slovenian and Croatian exports and added to Austria. The distribution to the countries of North Africa and the Middle East was done in percent. The MENA region as defined by the Holzkurier: Algeria, Bahrain, Egypt, Ethiopia, Iraq, Islamic Republic of Iran, Israel, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Sudan, Syrian Arab Republic, Tunisia, United Arab Emirates, Yemen. | © holzkurier.com

Delivery volumes from South America decreased slightly to 280,000 m³ (2023: 310,000 m³). North American exports remained at the rather insignificant level of 70,000 m³ in the first half of the year.

Sweden remains the largest supplier to the MENA region. The development in Egypt is particularly striking. Since 2021, Sweden has increased its exports to the country by 55%, to 643,000 m³ in the first half of this year. However, the value of these exports only rose by 18% to US-$126 million.

Over a period of several years, the situation looks somewhat different: Swedish shipments to Egypt grew at the expense of Russian (-36% since 2021) and Finnish suppliers (-4% since 2021).