GTI Report: Global timber industry shows uneven performance amid cost and raw material pressures

Timber yard in Wang Noi District, Ayutthaya Province, Thailand. © Forest Industry Organization (FIO)

The timber sector in both Indonesia and Thailand returned to growth in January 2026, while activity declined in other countries across the tropics as well as in China, according to the latest Global Timber Index (GTI) Report. The ITTO-supported GTI tracks the performance of the timber sector in pilot countries in Africa, Asia, and Latin America.

The GTIs for Indonesia (55.1%) and Thailand (54.2%) rose above the 50% threshold, indicating an upward trend in their timber sectors. However, the readings for Gabon (48.3%), Brazil (47.2%), the Republic of the Congo (46.0%), China (45.0%), Ghana (41.0%), Mexico (39.8%), Malaysia (37.5%), and Ecuador (36.3%) were in contraction territory, suggesting January saw an overall slowdown in those countries. 

The sub-indices pointed to several encouraging regional developments. In Southeast Asia, domestic markets improved in both Indonesia and Thailand, where the production volume also increased. In Africa, the supply side showed signs of stability, as harvesting and production activities in Gabon and the Republic of the Congo held steady. In Latin America, the bright spot was export performance, evidenced by month-on-month increases in the export volume of both Brazil and Mexico, while Ecuador’s export market stabilized after earlier declines. 

Specialized sub-indices still indicated overall contractions in January. The GTI-Producers Index was at 48.9%, while the GTI-Woodbased Panel Index stood at 43.6%.

Feedback from GTI sample enterprises indicated that raw material shortages and persistently high production costs remained common challenges confronting the timber sector in some countries. Enterprises in Indonesia, Thailand, Brazil, and Ecuador reported insufficient or unstable raw material supplies, while sample enterprises in Malaysia, Ghana, and China pointed to rising or persistently high purchase prices for raw materials. In addition, businesses were facing cost pressures in areas such as labour, electricity, fuel, and taxation. In response, some enterprises suggested stronger cost controls and called for government support through subsidies, tax incentives, and other policies.

Looking back over the past year, some countries managed to achieve export growth despite challenging external conditions. For example, Thailand’s exports of furniture and parts reached around USD 1.80 billion in 2025, up nearly 24% year-on-year. Brazil’s exports of lumber rebounded after three consecutive years of decline, climbing 5% to 2.96 million cubic meters in 2025. While Brazil’s shipments to the United States fell 12% to 842,000 cubic meters, exports to China, Spain, the United Arab Emirates, Saudi Arabia, and some other markets registered increases.

This year, GTI pilot countries have made new progress in addressing industry challenges and stimulating demand. On the supply side, the Union of Foresters and Wood Industries of Gabon (UFIGA) and the railway operating company SETRAG reached an agreement on 7 January to remove the requirement for cash payment prior to transportation, a move that would ease cash flow pressures on forestry operators. On the demand side, countries like Brazil, Mexico, and Ecuador have introduced new housing policies and targets that are expected to provide a tailwind for timber and furniture demand.

The monthly GTI Report, GTI-Producers Report and GTI-WBP Report are available at www.itto.int/gti/.