In May 2024, the GTI-Producers registered 39.2% (below the critical value of 50%), indicating that the overall prosperity of the harvesting and primary processing industries in the pilot producers shrank this month. The main reason is the indexes for the major timber producers were all in the contraction range, when demand in the global timber market was weak. Extreme weather had a great impact on Malaysia, Brazil, and Republic of the Congo (ROC), pulling down the GTI-Producers for these countries.

In Asia, the GTI-Producers for Thailand, Indonesia, and Malaysia registered 43.1%, 42.1%, and 30.1%, respectively, all below the critical value (50%). In Thailand and Malaysia, the volumes of harvesting and production decreased due to the rainy season, however in Indonesia, there was an increase in log production from natural forest concessions and plantation forest concessions (state forests) when compared to the previous month. On the demand side, both Thailand and Indonesia saw a notable increase in the volume of export orders, while Malaysia still experienced a decline in the volume of export orders.

In Africa, the GTI indexes for Gabon and ROC registered 37.2% and 40.7% respectively, also below the critical value. In Gabon, the index for harvesting was stable compared to the previous month, while the primary processing of wood decreased, and GTI-Gabon enterprises reported that demand from Asian and European timber markets decreased, leading to a reduction in orders. In ROC, due to the rainy season, logistics and transportation was hindered and harvesting and production activities had not yet been fully carried out.

In Latin America, the GTI indexes for Brazil and Mexico registered 37.9% and 42.5%, respectively, both in the contraction range below the critical value. In Brazil, rains had affected harvesting, and feedback from GTI-Brazil focal point showed that issues such as port bottlenecks, high waiting and storage costs, strikes by employees, extreme weather events, among other factors, continued to harm producers, limiting the quantity of wood products destined for export. Encouragingly, the market for Pine and Eucalypt logs for energy remained stable, and an increase in prices could be expected. In Mexico, the decline in harvesting and production had been contained, although challenges persisted due to unstable power supply, lack of transportation infrastructure, and weak market demand.

GTI-Producers Report - May 2024.pdf