Increase in wood product exports from Brazil in February sends positive signal on markets
20 March 2024
A sawnwood processing facility in Mato Grosso, Brazil. Photo: A. Benavides
20 March 2024: The global timber market showed positive signs in February 2024 despite continued overall lacklustre performance, according to the latest edition of the Global Timber Index (GTI) Report, released today. The ITTO-supported GTI tracks the timber sectors in eight pilot countries around the world, with Thailand joining this month and other countries likely to join soon.
GTI values were below the threshold of 50% in February 2024 for all participating countries, thus indicating an overall decline in their timber sectors. The three best-performing countries (although still declining) were Thailand (45.6%), Indonesia (44.0%) and Gabon (43.5%), followed by Brazil (39.6%), Republic of the Congo (35.5%), Mexico (35.2%), China (31.7%) and Malaysia (23.2%).
Despite the continued downturn, timber production and trade began returning to normal in some countries, with markets showing positive signs due to the diminishing influence of factors such as holidays. In Brazil, export orders for wood products increased in February; Gabon’s new orders held steady; Thailand’s export orders remained at the same level as January; and Republic of the Congo’s downward trend in export orders eased.
In celebration of the Spring Festival, factories in China halted operations for nearly half of February, resulting in a significant reduction in timber production and trade, but activity is expected to pick up in late March.
Some GTI pilot countries reported notable achievements towards the development of a legal and sustainable timber industry in February. For example, a new vocational training and education centre in Gabon’s Special Economic Zone, NKOK, commenced training for sawyers, peelers, joiners, sharpeners and others with the aim of creating a pool of skilled forest-sector workers for NKOK and across Gabon.
On 9 February, Mexico’s National Forestry Commission signed an agreement with the state of Mexico to strengthen forest conservation training, enhance community involvement, develop the forest industry, and improve quality of life for local communities.
The second meeting of the Ad Hoc Joint Task Force on the European Union Deforestation Regulation (EUDR) was held in Putrajaya, Malaysia, in early February. During the meeting, a representative of Indonesia’s Coordinating Ministry for Economic Affairs said the Indonesian government was hoping for a concrete solution—such as delayed EUDR implementation—from the Ad Hoc Joint Task Force. The European Commission said it would cooperate with Indonesia and Malaysia to ensure that smallholders in all relevant commodity sectors remained in deforestation-free supply chains. The European Commission welcomed the commitment of the two countries to developing rigorous tracking systems and strengthening their certification systems.
The monthly GTI Report is available free at www.itto.int/gti
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