GTI Report: Brazil the only bright spot in May as industry battles headwinds

Workers in a plant nursery in Calakmul, Campeche state, Mexico. © Ejido Nuevo Becal

The timber sector in Brazil returned to growth in May 2026, standing out against broadly subdued sentiment across many other markets, 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 ten GTI pilot countries, only Brazil (51.7%) recorded a GTI reading above the 50% threshold, indicating a slight expansion in its timber sector compared to the previous month. Among the other nine countries, Indonesia (49.8%), Mexico (49.6%), the Republic of the Congo (48.6%), and Ecuador (48.1%) posted readings indicating slight contraction; China (47.8%), Thailand (44.6%), and Ghana (43.7%) showed moderate contraction; and Gabon (39.0%) and Malaysia (25.8%) recorded a significant downturn. 

Sub-indices revealed that Mexico’s harvesting volume increased in May, Ecuador’s production volume maintained its growth for a third consecutive month, and the volume of new orders rose in Indonesia, Thailand, and Brazil. Data also indicated that export performance of the African and Latin American countries was relatively strong in the month: Gabon, Brazil, and Ecuador saw growth in export orders compared to April; the Congo’s export market remained stable for seven consecutive months; Mexico’s export market stabilized after a downturn; and the contraction in Ghana’s export market eased.

Specialized sub-indices indicated overall contractions in May. The GTI-Producers Index was at 48.8%, while the GTI-Woodbased Panel Index stood at 41.9%.

The primary challenges in May were weak demand and rising costs, with conflicts in the Middle East further driving up fuel and logistics costs for businesses. To address demand‑side challenges, timber sectors in GTI-participating countries actively diversified export markets and intensified international promotion and cooperation. Thailand, for instance, partially offset the contraction in Middle East markets by expanding exports to China, the United States and Malaysia, while Chinese furniture enterprises maintained order volumes through price adjustments. At the same time, countries continued to strengthen their legal and sustainability frameworks to enhance access to international markets. 

To ease cost pressures, many enterprises strengthened cost control and inventory management, and called on governments to stabilize fuel prices and provide tax incentives and subsidies.

Seasonal rainfall and extreme weather also posed challenges. Thailand’s Meteorological Department announced that the rainy season of this year officially began on May 15 and may last until mid‑October, which would affect timber harvesting and raw material supply. In addition, in areas such as Durango, Mexico, the spread of pests like the bark beetle caused significant difficulties for harvesting, mainly due to the rise in extreme temperatures, which increased the pest’s breeding cycle from one per year to as many as three.

The latest GTI Report also highlights developments in sustainable forest management and legality certification, including sustainable management and legality verification in the Congo, FLEGT licensing in Ghana, concession-based governance in Gabon, expanded forest concessions in Brazil, and new national forestry program in Mexico.

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