The Global Timber Index (GTI) Report in July 2023 showed that the GTI-China Index registered 53.0%, up 4.8 percentage points from the previous month, indicating it rose above the critical value (50%) again after 2 months. Stimulated by policies aimed at boosting home furnishing consumption, the furniture and the timber consumption markets in China showed signs of expansion.

The GTI index also showed that the GTI-Gabon index increased by 7.0 percentage points to 51.3%, driven by several factors such as growing harvesting volume, increased number of production and management employees, and more active delivery. The GTI-Indonesia index decreased by 5.3 percentage points to the critical value (50%), indicating the overall level of timber processing and manufacturing remained unchanged from the previous month. The timber harvesting in Brazil had gradually stabilized, and although the GTI-Brazil index (35.3%) remained in the contraction range, the decline had narrowed. The GTI indexes of Malaysia, ROC, and Mexico registered 34.7%, 34.8%, and 43.4% respectively, continuing their decline in the contraction range below 50%, which indicated continued sluggishness in the operation of the timber market.

Since the beginning of this year, timber-producing countries had been suffering setbacks in exports due to the continuous contraction of international market demand, and some Brazilian enterprises said they had put workers on furlough in response to the impact of reduced exports. The demand for sawn timber in Mexico was approaching saturation, leading to a decline in market prices, and meanwhile, enterprises in the country wanted to engage in more marketing activities to find potential customers and expected new policies to raise green purchasing awareness. In ROC, the production volume of logs fell due to the ban on log exports. Recently, there was a noticeable slowdown in demand for certain species such as Okoume and Ayous in the Asian markets (Chinese market in particular), and enterprises hoped the forestry authorities may provide more support and offer some tax exemptions to alleviate their pressure.

GTI Report - July 2023.pdf