In January 2025, the GTI-Woodbased Panel (GTI-WBP) Index registered 45.0%, an increase of 2.1 percentage points from the previous month, was below the critical value (50%) for ten 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 of pilot countries continued to decline. This month, the new orders index and the export orders index registered 37.0% and 32.5%, respectively, both below the critical value of 50% and more than 10 percentage points lower than the previous month. During New Year holidays, some enterprises proactively suspended operations, leading to seasonal fluctuations and a decline in market demand. It is expected that with the end of holidays and the resumption of business operations, the demand for wood-based panels will gradually return to normal levels.

On the supply side, the downward trend in wood-based panel production had lasted for ten months, however, the decline had significantly eased and the production was approaching stability. This month, the production index registered 49.4%, an increase of 9.8 percentage points from the previous month. The main reason for the improvement is the levels of product inventory had been reduced in many countries over the past year. This reduction had, in turn, spurred the production enthusiasm of enterprises.

In terms of prices, the purchase price index for raw materials registered 71.7%, above the critical value for seven consecutive months, indicating a significant increase in the prices. This month, all GTI-WBP pilot countries reported problems related to raw materials. Higher transportation costs, continuous rise in log prices, and inadequate raw material supply had intensified the raw material procurement pressures faced by wood-based panel manufacturers. For example, Chinese enterprises reported difficulties in raw material procurement, Brazilian enterprises said the supply of raw materials for production was unstable, Ghanaian enterprises mentioned that poor road conditions led to a shortage of raw materials, and enterprises in Republic of the Congo said heavy rains restricted logging efficiency. In addition, enterprises in Malaysia, Thailand, Gabon, and Mexico also reported insufficient raw material supply.

Main updates related to the wood-based panel market include: In 2024, China exported 17.8599 million cubic meters of wood-based panels, up 24.79% year-on-year. During the same period, it imported 2.1291 million cubic meters of wood-based panels, up 36.02% year-on-year. Despite the growth in both imports and exports of wood-based panels, the average unit prices of both imports and exports declined. In December 2024, Brazilian exports of tropical plywood amounted to 3,300 m3 in volume and US$1.9 million in value, representing a significant year-on-year increase of 83% and 73%, respectively.

GTI-Woodbased Panel (GTI-WBP) Report - January 2025.pdf