GTI: global timber market sends mixed signals in March as tariff upheaval looms

Factory of Ibrahim and Sons Company Limited, Ghana. Photo: Peter Zormelo

The global timber market sent mixed signals in March, just as the threat of upheaval in international trade clouded the economic outlook for both producer and consumer countries around the world, according to the latest Global Timber Index (GTI) report.

The GTI for March included readings for Ghana (64.2%), China (58.1%), and Mexico (50.3%) above the 50% threshold, indicating an upward trend in the timber sectors of those countries. However, the indexes for Thailand (46.7%), Gabon (44.7%), the Republic of the Congo (40.9%), Brazil (35.0%), and Malaysia (20.1%) were below the threshold, suggesting an overall decline.

Positive signs were also evident in some GTI sub-indices. For example, in Ghana and Mexico, enterprises saw increases in both harvesting and production; in China and Thailand, the domestic market improved compared to the previous month; and in Gabon and the Congo, the decline in export markets eased.

Still, the GTI-Producers Index, a specialized index for timber production, was at 40.3%, and the GTI-Woodbased Panel Index, a specialized index for wood-based panels, stood at 46.1%, indicating that both subsectors weakened in March.

Tariff-related issues were highlighted in several countries, the report said. For instance, businesses surveyed in Gabon said export taxes increased, and enterprises in Ghana reported high export tariffs and high taxes on imported spare parts for machinery. The GTI-Brazil Focal Point noted that increased US tariffs might lead to a downturn in exports of key products such as plywood and sawnwood. Enterprises in Mexico also reported that high tariffs had hindered international trade.

With key countries including the United States of America and China at odds over tariffs and trade, the report advised timber traders to “stay cautious and monitor the latest policies and market dynamics to mitigate risks.”

As well as taking the pulse of global timber markets, the latest GTI report also surveys progress toward sustainable forest management in its nine pilot countries.

To further cooperation and the exchange of information, starting in March, the GTI report also lists upcoming timber-related events, such as exhibitions, conferences and training courses in each of the countries.

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-Woodbased Panel Report