The Global Timber Index (GTI) Report for August 2024 revealed that timber markets in Indonesia and Thailand were showing signs of stabilization, with the GTI indexes for the two countries registering 50.4% and 50.0%, respectively. The GTI indexes for Republic of the Congo (48.5%), Brazil (44.5%), China (43.1%), Mexico (40.9%), Gabon (40.8%), Ghana (39.4%), and Malaysia (31.5%) were still below the 50% critical value (thus indicating contraction in the timber sector), however, positive changes were evident in some countries. For example, Gabon's harvesting volume increased compared to the previous month, and Brazil's enterprises saw an increase in existing orders, which also led to an uptick in the purchase of raw materials.

It is worth noting that with global timber market demand still at a low level, the new orders received by GTI sample enterprises decreased in many countries (Malaysia, Republic of the Congo, Gabon, Ghana, Brazil, Mexico, and China) when compare to the previous month. Under this circumstance, enterprises had a strong demand for expanding markets and increasing the sales of timber and wood products, and they were calling for effective measures such as developing innovative products, expanding sales channels, and providing new services. In the meantime, the significant fluctuations of the US dollar against the Mexican peso and the Brazilian real had raised concerns about costs and profits.

In Africa this month, there were some developments and new regulations on industry regulation and timber resources exploitation. For example, the Gabonese transitional government approved a draft decree aimed at re-authorizing the exploitation of the precious wood species Kevazingo, for which a geographic reference system will be introduced to enhance the traceability of the wood's origin, and logging activities will be restricted to concessions that have been certified for sustainable management. The Forestry Commission of Ghana officially announced a review of the long-unadjusted timber stumpage fees and decided to increase the fees by 40% starting from September 15, 2024. And in Republic of the Congo (ROC), the Minister of Forest Economy signed an agreement with Xian He Congo Company, aimed at developing 21,268 hectares of timber from state-owned plantations. The project will mainly focus on pine and eucalyptus plantations and over 15 billion CFA francs will be invested.

GTI Report - August 2024.pdf