GTI Report: Three pilot countries show expansion in April despite high costs and trade shifts

Material selection at a wood processing factory in Mexico. © ZEPEMIN

Currently, the global timber industry is grappling with persistently high costs as well as dislocating shifts in the trade landscape. Against this backdrop, the timber sector in China, Ecuador, and Mexico still managed to achieve growth in April 2026, according to the latest Global Timber Index (GTI) Report. The ITTO-supported GTI tracks the performance of the timber sector in ten pilot countries in Africa, Asia, and Latin America.

Among the pilot countries, China (53.5%), Ecuador (53.0%), and Mexico (52.0%) recorded GTI readings above the 50% threshold, indicating an overall upward trend in their timber sectors. Other countries were in contraction territory: the Republic of the Congo (49.8%) posted a reading indicating slight contraction; Indonesia (47.8%), Brazil (46.1%), Thailand (45.8%), and Ghana (45.6%) showed moderate contraction; and Gabon (36.0%) and Malaysia (27.5%) recorded a significant downturn.

The sub‑indices revealed that harvesting volume in Mexico rose compared to the previous month, while Brazil maintained stable harvesting for the third consecutive month. On the production side, Gabon, Ecuador, and China all showed gains. On the demand side, new orders increased in Mexico, Ecuador, and China, and the Congo saw new orders remain stable for the third consecutive month.

Specialized sub-indices indicated overall contractions in April. The GTI-Producers Index was at 45.7%, while the GTI-Woodbased Panel Index stood at 46.6%.

High costs stood out as a major challenge for GTI sample enterprises. Although fuel prices in several countries declined this month, they remained at historically high levels, placing considerable cost pressures on timber transport, harvesting, and other activities. At the same time, cost pressures from raw materials, labour, electricity, and taxes further squeezed profit margins. In response, some governments have proactively introduced supportive measures. For example, Malaysia’s Sarawak government approved a 50% reduction in royalty rates and selected statutory charges for natural forest timber, in an effort to ease cost burdens on the industry.

GTI pilot countries continued to see dynamic shifts in timber trade. Affected by tensions surrounding the Strait of Hormuz, timber trade between pilot countries and Middle Eastern nations dropped sharply. Taking Brazil as an example, its timber exports to the Middle East reportedly plummeted by two-thirds between January and March 2026. In the Americas, Brazil’s timber sector also saw a decline in exports to the United States and an increase in exports to Mexico, reflecting its efforts to find alternative markets.

The latest GTI Report also highlights developments in forest governance, including livestock-related deforestation prevention in Mexico, technological empowerment in Malaysia, and community‑based participatory governance in Thailand.

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