OREANDA-NEWS. October 12, 2011. The Lithuania Western Timber Enterprises Association has forecast that Lithuanian log exports will reach 2.5 million cubic metres in 2011. Of this total, 1.5 million cubic metres will be exported to Asia with most going to China, ITTO reported.

In the past China imported large quantities of logs from Russia but this has changed due to the imposition of high export tariffs on log exports from Russia.

Timber traders in China have been importing logs from Lithuania as they are cheaper than those from Russia because there is no export duty applied. However the increasing demand from China has pushed up log prices to such an extent that domestic mills in Lithuania cannot compete.

Imedeksa, one of Lithuania timber processing companies, is of the opinion that some Lithuanian timber processing companies will face the risk of bankruptcy if the Lithuanian government does not act to impose an export tariff on logs.

Many Lithuanian timber processing companies signed a letter to the government asking that the risks to domestic manufacturers be addressed. However, the imposition of an export duty by Lithuania may first have to be approved by the EU says an analyst.