After the imposition of tariffs in October, some paper products in Russia have increased by 15%

After Russia began imposing export tariffs on pulp, paper, and cardboard on October 1, 2023, it triggered an increase in product prices in its domestic market. As of November 1st, for certain types of cardboard products, the price increase has reached 15%. Meanwhile, for wood chips and pulp products that produce paper products, prices remain stable.

It is reported that the Russian government issued a decree on September 21, 2023, which stipulates flexible export tariffs on various commodities and pegs their ruble exchange rate. The export customs products on this list include pulp, paper, and cardboard [according to the Russian national currency exchange rate, tariffs are 4% to 7%: 4% of the price, with an average exchange rate of 80-85 rubles; 4.5% is 85-90 rubles; 5.5% is 90-95 rubles; 7% is over 95 rubles].

According to expectations, this measure will protect the domestic market and will continue until the end of 2024. But at the same time, changes may occur in early 2024. Due to export restrictions, most of the produced cardboard will remain in the domestic market of Russia. For Russia, overproduction and oversupply should lead to a significant drop in prices. But for exports, prices may still maintain an upward trend. But for the raw wood materials used for producing wood pulp, the current price trend remains stable.

According to some manufacturers, the new export tariffs deprive suppliers of approximately 30-40% of additional income. The export of pulp and paper products requires national support, and restrictions should only be imposed on products in Russia's internal market that are in short supply, such as cardboard, and should not be generalized.