In December, the GTI-Woodbased Panel (GTI-WBP) Index registered 42.9%, a decrease of 3.0 percentage points from the previous month, was below the critical value (50%) for nine consecutive months, indicating that in the GTI pilot countries, the overall business prosperity of wood-based panel industry represented by the index shrank from last month.

On the demand side, the overall demand for wood-based panels had slightly decreased in the pilot countries. This month, both the new orders index (47.8%) and the export orders index (43.9%) registered below the critical value of 50%, indicating that the international market for wood-based panels was still relatively sluggish. The main reasons include the downturn in the Asian and European markets, the slowdown in renovations due to holidays, etc.

On the supply side, the downward trend in wood-based panel production had lasted for nine months. This month, the production index registered 39.6%, an increase of 2.1 percentage points from the previous month, still below the critical value of 50%. Due to persistent overcapacity in the global wood-based panel industry, intensified market competition, and cost pressures on production and operations, a large number of wood-based panel enterprises had slowed down production recently.

In terms of prices, the purchase price index for raw materials registered 53.7%, above the critical value for six consecutive months, indicating a continued rise in raw material prices. However, the increase had slowed slightly. This month, the supply of logs from many timber-producing countries decreased, leading to a rise in the average price of logs. At the same time, transport costs of raw materials rose, further increasing cost pressure on wood-based panel manufacturers.

Main updates related to the wood-based panel market include: On 17 December, the European Commission published a notice in the Official Journal of the European Union for implementing Regulation (EU) 2024/3140, which makes imports of hardwood plywood originating in China subject to registration. In 2024, Brazil's plywood exports grew by 15% following two years of decline, reaching 2,553 thousand cubic meters. In Ghana, plywood had ranked fourth among the top five timber exports.

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