In September(testing period), GGSC-Gabon index registered 49.9%, a decrease of 5.0 percentage points from the previous month, and was below the critical value of 50% ,indicating that the overall operating situation of key timber companies operating in Gabon who participated in the survey is shrink-ed compared with the previous month.
Specifically, on the supply side, the timber harvesting volume of key enterprises decreased significantly and the manufacturing increased. On the demand side, the orders of enterprises have decreased, and the export orders of most enterprises have decreased. At the same time, the price of raw materials still increased significantly, and the inventory of raw materials and finished products of most enterprises was basically stable.
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. In September, the timber manufacturing industry is still not prosperous enough and there is no prosperity of "golden September and silver October".The GGSC-CN comprehensive index for September registered 48.2% (51.6% for last September and 55.3% for September 2019), an increase of 5.3 percentage points from the previous month, and was below the critical value of 50% for three months. It shows that the operation of the superior forest products enterprises represented by GGSC-CN index shrink from last month.
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.
The GGSC-Gabon sub-indices are as follows:
The production index registered 56.3%, an increase of 11.8 percentage points from the previous month, which is above the critical value of 50%. It shows that the production of key companies granted with forest concessions has increased than that of last month.
The new order index registered 43.8%, a decrease of 22.9 percentage points from the previous month. It reflects that the ability of key companies granted with forest concessions to obtain less orders than last month.
The main raw material inventory index registered 50.0%, a decrease of 7.1 percentage points from the previous month, which is the same as the critical value of 50%. It shows that the raw material inventory of key companies granted with forest concessions is almost same as last month.
The employment index registered 43.8%, a decrease of 6.3 percentage points from the previous month. It shows that the the employment of key companies granted with forest concessions is less than that of last month.
The supplier delivery time index registered 56.3%, an increase of 6.3percentage points from the previous month. It indicates that the supply time of raw material suppliers for key companies granted with forest concessions was significantly quicker 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.