15 May 2024: This month, the GTI-Woodbased Panel (GTI-WBP) Index, as the first specialized sub-index of Global Timber Index (GTI), is officially released. The GTI-WBP tracks and monitors the overall prosperity trend of the wood-based panel industry (cover plywood, fiberboard, particleboard, etc.) in GTI pilot countries.

In April, the GTI-WBP Index registered 43.1% and was below the critical value (50%), indicating that in the pilot countries, the business prosperity of wood-based panel industry represented by the index shrank from last month. The contraction could be mainly attributed to the downturn in the global timber market and the impact of wood substitutes.

On the demand side, there had been a decline in the overall volume of orders for the wood-based panel industry in the pilot countries, when compared to the previous month. Specifically, domestic orders in the pilot countries experienced a significant decrease, surpassing the decline observed in export orders. In addition, the number of existing orders held by enterprises also fell sharply from the previous month. The new orders index and the export orders index were both below the critical value of 50%, standing at 38.6% and 43.0% respectively.

On the supply side, the production index registered 47.7% in the contraction range, indicating that the overall production volume of wood-based panel in the pilot countries decreased from the previous month. Due to poor sales, inventory of finished products increased slightly, with the index for the inventory recording 50.8%. Raw material shortages were observed in some countries, resulting in an overall decline in raw material purchase and a notable decrease in raw material inventory, when compared to the previous month.

From a price perspective, the purchase price index of raw materials registered 52.9%, in the expansion range of more than 50%, indicating a slight increase in the overall purchase price of raw materials compared to the previous month. The shortage of raw materials in some countries was one of the factors leading to the price increase.

From the perspective of policy and market, Brazilian plywood export volume increased by 7% and export price rose by 4% in April, as reported by Lesprom. On 3 May, China adjusted the Catalog of Production Licenses for Industrial Products. As per the new Catalog, plywood and joinery board producers should obtain production qualifications, upon approval by provincial-level production licenses authorities for industrial products. The chairman of Malaysian Panel-Products Manufacturers' Association (MPMA) said the scarcity of raw materials (especially timber from natural forest sources) had hindered factory production, affecting key products such as plywood, medium-density fiberboard and particleboard. He added the industry was also looking into alternative raw materials such as oil palm trunks, coconut trunks and rubberwood, so as to ensure sufficient supply for the industry.

GTI-Woodbased Panel Report - April 2024.pdf