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Ukraine war to hit supply of construction wood products
Neil Gerrard Associate editor
OSB board (Image: Dreamstime)
The war in Ukraine and sanctions on Russia and Belarus will hit the supply of wood products used in construction, including OSB (oriented strand board) and plywood.
That’s according to the latest update on construction product availability from the Construction Leadership Council (CLC).
John Newcomb, CEO of the Builders Merchants Federation and Peter Caplehorn, CEO of the Construction Products Association, co-chairs of the CLC’s Product Availability working group, said: “These countries are major suppliers of pallet wood and manufactured pallets, as well as large producers of the components of the resins used in wood-based panel manufacture including OSB. Russia is also one of the main sources of birch plywood, used in a variety of applications from transport and shop fitting to furniture and die cutting.
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They added that other product areas that could be affected by the Russian invasion include ceramic tiles and sanitaryware, as Ukraine is a main source of supply for kaolin used in their manufacture. They said: “As reported previously, this group is also actively monitoring the indirect impact of sanctions on Russian steel, including heavy plates, coil and slab intended as upstream products for the EU market. Any shortages on the continent could have a knock-on effect on the UK market.”
Newcomb and Caplehorn also warned that some contractors are pausing before entering fixed-price or long-term contracts because of spiralling prices.
Some suppliers are reportedly only willing to hold quotes for tender prices for 24 hours, with the uncertainty affecting contractors’ willingness to enter into certain contracts.
The CLC said there were the first signs of a “slight softening” in demand for construction products, although higher volumes of trade sales were compensating for a decline in retail sales for DIY and home improvement projects.
Meanwhile, there are good stocks of most products, although challenges continue to affect the supply of bricks, aircrete blocks, roof tiles, gas boilers, plastic drainage and other plastic products, as well as some electrical products, particularly those using semi-conductors.
Some manufacturers of energy-intensive products are now warning of surcharges linked to energy costs. UK manufacturers are reported to be managing stocks and the supply chain to enable continued supply.
The January/February 2026 issue of Construction Management magazine is now available to read in digital format.
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