In September, the GTI-Woodbased Panel (GTI-WBP) Index registered 47.4%, an increase of 6.7 percentage points from the previous month, was below the critical value (50%) for six consecutive months, indicating that the business prosperity of wood-based panel industry represented by the index shrank from last month, however, the contraction had eased.

On the demand side, the demand for wood-based panels showed a recovery trend in pilot countries. This month, new orders index registered 50.6%, rose above the critical value for the first time, indicating an increase for new orders which was mainly driven by domestic demand in the pilot countries. The export orders index registered 40.9% (still below the critical value), an increase of 6.2% from the previous month, indicating a decrease in export orders of wood-based panels, however, the decline had narrowed.

On the supply side, the production index registered 49.4%, an increase of 6.2 percentage points from the previous month. Although the index had been below the critical value of 50% for six consecutive months, production recovery could be expected, as the inventory of wood-based panels had been reduced worldwide for several consecutive months.

From a price perspective, the purchase price index for raw materials registered 53.5%, above the critical value for three continuous months, indicating an overall upward trend in purchase prices. Affected by rising log prices and higher transportation costs, enterprises’ pressure on costs continued to increase in Malaysia, Mexico and some other countries.

In terms of market conditions and developments, starting from 25 June 2024, China implements management of industrial production permits for six items, including plywood and blockboard. Enterprises without the permits are not allowed to produce these products. As of September, some provinces with concentrated wood-based panel (WBP) industry clusters, such as Guangxi, Anhui, Shandong, Zhejiang, and Guizhou, announced the first batch of enterprises that had received WBP production permits. In August, Brazil's exports of tropical plywood were US$0.9 million in value and 1500 cubic meters in volume, showing a significant year-on-year decline of 40.0% and 37.5% respectively. In Gabon, benefiting from strong demand in the European Union, Asia, and local areas, the plywood production index increased by 21%.

GTI-Woodbased Panel (GTI-WBP) Report - September 2024.pdf