Timber markets in Asia steady in August
30 September 2024
Jakarta’s port. Timber markets in some Asian countries are stabilizing. Photo: Herman Prayudi
30 September 2024: Timber markets in some Asian countries are showing signs they are stabilizing, 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 nine pilot countries.
The GTI indices for Indonesia (50.4%, up from 46.4% in July) and Thailand (50.0%, up from 48.4%) reached the threshold of 50% in August, suggesting stabilization in their timber sectors (a value below 50% indicates an overall decline in the sector and a value above 50% indicates growth).
The GTI indices for the Congo (48.5%), Brazil (44.5%), China (43.1%), Gabon (40.8%), Ghana (39.4%), Malaysia (31.5%) and Mexico (40.9%) were all still below the 50% threshold in August, but some positive changes were evident. For example, harvesting volume increased in Gabon compared with July, and Brazilian enterprises saw increases in existing orders, leading to an uptick in the purchase volume of raw materials.
Global timber market demand is still relatively low, with GTI-participating enterprises in Brazil, China, the Congo, Gabon, Ghana, Malaysia and Mexico receiving lower orders in August compared with the previous month. Given this, many enterprises are looking at new ways to expand their markets, such as by developing innovative products, increasing sales channels and providing new services. Significant fluctuations in the United States dollar against the Mexican peso and Brazilian real raised concerns about costs and profits in those two countries.
In other news, the GTI-Producers Index, a specialized index for timber production, was at 45.6% in August, and the GTI-WBP Index, a specialized index for wood-based panels, stood at 40.7%, indicating that both subsectors declined in August.
There were developments and new regulations affecting the sector in some African countries in August. For example, the Gabonese transitional government approved a draft decree re-authorizing the harvesting of the precious wood species kevazingo. As part of measures to help conserve the species, a geographic reference system will be introduced to enhance traceability, and logging activities will be restricted to concessions that are certified for sustainable management. In Ghana, the Forestry Commission announced a review of its long-unadjusted timber stumpage fees, with fees increasing by 40% from 15 September 2024. In the Congo, the Minister of Forest Economy signed an agreement with the Xian He Congo Company to harvest timber on 21 268 hectares of state-owned plantations. The project will focus on pine and eucalypt plantations, and more than 15 billion CFA francs will be invested.
The monthly GTI Report, GTI-Producers Report and GTI-WBP Report are available free at www.itto.int/gti
Download the latest GTI Report, GTI-Producers Report, and GTI-WBP Report