Timber markets in GTI pilot countries improved in June

19 July 2024: Timber markets in GTI pilot countries showed encouraging signs in June 2024 after persistent challenges, according to the latest edition of the Global Timber Index (GTI) Report, released today. The ITTO-supported GTI tracks the performance of the timber sector in eight pilot countries.

The GTI indices for all pilot countries increased in June, with the biggest turnarounds in Thailand (with a GTI of 59.5%, up from 43.1% in May) and Indonesia (51.5%, up from 42.1%). A GTI above 50% indicates overall growth in the timber sector. In both Thailand and Indonesia, harvesting, production and orders were all in positive territory in June.

The GTI indices for Mexico (47.2%), Brazil (46.5%), the Congo (43.2%), Gabon (41.2%) and Malaysia (33.3%) were all below the 50% threshold in June, indicating that the timber markets in these countries remained relatively sluggish. Nevertheless, all GTIs increased in June compared with May, indicating an easing in the downward trends in those timber sectors. In Mexico, the volume of new orders for GTI-participating enterprises increased; in Brazil, the production volume of GTI enterprises rose; and, in the other three countries, the contractions eased, despite both timber production and orders showing decreases.

The GTI index for China was still below the threshold, albeit increasing from 42.2% to 46.7%. A slowdown in effective demand, and a sharp rise in shipping costs, had a significant impact on timber enterprises in the country.

In other news, the GTI-Producers Index, a specialized index on timber production, rose to 48.0% in June (from 39.2%), and the GTI-WBP Index, a specialized index on wood-based panels, increased to 46.3% (from 42.6%), indicating that the contractions in those subsectors had eased.

In June, GTI pilot countries made encouraging progress in sustainable forest management. To align with the European Union Deforestation Regulation (EUDR), Indonesia was considering adjustments to its land inventory measurement methods, and Malaysia’s Sabah Forestry Department officially launched a partnership with the European Union to update the Sabah Timber Legality Assurance System (TLAS). In Gabon, the Ministry of Water and Forests bolstered the vehicle fleet to assist forest rangers in carrying out their fieldwork. This enhancement will help fight illegal logging and protect flora and fauna, while also enabling the Ministry to better support companies towards certification.

In some countries, new development opportunities for the timber sector emerged in June. Claudia Sheinbaum, the newly elected President of Mexico, announced that the government would develop ten additional “Well-Being Development Hubs” across the country, which would be integrated with ten new industrial corridors, among which the Gulf Corridor (covering Veracruz, Tabasco, Chiapas and Campeche) would prioritize industries such as timber. The Brazilian Congress approved a new law whereby environmental impact studies (EIAs) and environmental impact reports (RIMAs) are no longer required for the issuance of environmental permits for silviculture projects; the EIA/RIMA process has been a costly and time-consuming part of the environmental licensing process.

The monthly GTI Report, GTI-Producers Report and GTI-Wood-based Panel Report are available free at www.itto.int/gti

Download the latest GTI Report, GTI-Producers Report, and GTI-WBP Report.