In May 2023, the Global Timber Index (GTI) report shows that the GTI indexes of the seven pilot countries (Indonesia, Malaysia, Gabon, ROC, Brazil, Mexico, and China) were all below the critical value (50%). The contraction in international market demand continued to impact timber enterprises in the timber producing and processing countries.

The report shows that the GTI-Indonesia index recorded 44.9% in May , falling below the critical value again in one month. The production volume and order quantity of GTI-Indonesia enterprises decreased compared to that of the previous month, while the inventory of finished products increased, indicating insufficient recovery momentum on both the supply and demand sides. The GTI-ROC index and the GTI-Mexico index recorded 35.7% and 44.5% respectively, below the critical value but showing an increase of 9.4 and 0.4 percentage point compared to that of the previous month, indicating that the downward trend of the countries' timber markets had eased. Gabon, Brazil, and Malaysia recorded 33.8%, 32.9%, and 28.0% respectively, with a continuous contraction trend for 7 consecutive months, meaning significant pressure on the survival and development of timber enterprises. The GTI-China index recorded 35.3%, a decrease of 20.5 percentage points compared to that of the previous month. After three consecutive months of increase, the number of new orders of GTI-China enterprises decreased this month, especially the significant decline in domestic orders, indicating a decrease in purchasing enthusiasm among enterprises.

This month, the challenges reported by GTI enterprises focused on three main aspects: a decrease in market orders, rising costs such as fuel costs, and a decline in the selling price of logs. Gabon and ROC also faced challenges related to poor road and rail transportation conditions. GTI-Gabon enterprises suggested strengthening communication with foreign clients and enhancing cooperation with local governments. GTI-Brazil enterprises hoped to gain more market recognition of precious tree species such as Toona Ciliata and Khaya Grandifoliola. GTI-Indonesia enterprises wished for more support from the government in financing, export tariffs, international cooperation, and other aspects.

Recently, GTI pilot countries were paying attention to the progress of European Union Deforestation Regulation (EUDR). For example, the furniture industry in Brazil was concerned about the potential risks posed by EUDR. In Malaysia, the Sarawak Forestry Industry Association was calling for maximizing the use of timber from planted forests to produce high-value-added products such as wood based panel and furniture. And the Sarawak state government was taking proactive measures to ensure a sustainable and renewable supply of raw materials to meet the needs of the timber industry.

GTI Monthly Report-May 2023.pdf