In August(testing period), GGSC-Gabon index registered 54.3%, an increase of 2.5 percentage points from the previous month, and was above the critical value of 50% for two months,indicating that the overall operating situation of key timber companies operating in Gabon who participated in the survey is expanding compared with the previous month.
Specifically, on the supply side, the manufacturing of key enterprises decreased slightly; On the demand side, enterprise orders maintained a rising momentum. Export orders continued to rise slowly, and enterprise orders on hand increased compared with the previous month. At the same time, the price of raw materials still increased significantly. According to the feedback of enterprises, the inventory of raw materials and finished products of most enterprises increased this month, highlighting problems such as high export logistics and transportation costs and container shortage.
The comparison chart of GGSC-Gabon and GGSC-CN is shown in Figure 1. August is the traditional off-season of the forest product manufacturing industry in China. The GGSC-CN comprehensive index for August registered 43.0% (47.1% for last August and 42.1% for August 2019), a decrease of 4.7 percentage points from the previous month, and was below the critical value of 50% for two months. It shows that the operation of the superior forest products enterprises represented by GGSC-CN index shrink from last month. See Figure 1 for more details.
Figure 1 Trend of GGSC-CN Index and GGSC-Gabon Index from May-August 2021
Note: The GGSC-Gabon Index started testing in July 2021, thus only July and August data is available.
The GGSC-Gabon sub-indices are as follows:
The production index registered 44.4%,a decrease of 13.9 percentage points from the previous month, which is below the critical value of 50%. It shows that the production of key companies granted with forest concessions has decreased than that of last month.
The new order index registered 66.7%, an increase of 16.7 percentage points from the previous month. It reflects that the ability of key companies granted with forest concessions to obtain more orders than last month.
The main raw material inventory index registered 57.1%, a decrease of 2.9 percentage points from the previous month, which is above the critical value of 50% for two months. It shows that the raw material inventory of key companies granted with forest concessions is increased from last month.
The employment index registered 50.0%, same as the critical value. It shows that the the employment of key companies granted with forest concessions is basically the same as last month.
The supplier delivery time index registered 41.7%, an increase of 8.3percentage points from the previous month. It indicates that the supply time of raw material suppliers for key companies granted with forest concessions was significantly slower than last month.
Note：The GGSC-Gabon Index is the regional GGSC (Global Green Supply Chain) index of Gabon. It is developed from the FPI index system of original Chinese forest product index mechanism. The GGSC-Gabon Index was collected by the GGSC Secretariat, with the support of Forest Union of the Asian Industry in Gabon (UFIAG). Data from frontline enterprises operating in Gabon’s forestland was collected and analyzed. The index reflects the operating conditions of Gabon’s key companies granted with forest concessions. All sample companies are granted forest concessions in Gabon, with a total area of 1.88 million hectares of concession-based forestland, accounting for about 19% of the totalforestland with concessions in Gabon (10 million hectares). In addition to forestland management, it also produces logs, sawn timber, plywood, veneer and other products.
The analysis conclusion of the report is based on the data reported by the enterprise itself. At present, the GGSC-Gabon index is still in the testing period. The index model and sample collection need to be further improved based on the test results. It is not recommended to use this index for investment related decision-making.