In March 2025, the GTI-Woodbased Panel (GTI-WBP) Index registered 46.1%, an increase of 7.0 percentage points from the previous month, was below the critical value (50%) for twelve 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, however, the contraction had eased. Also, from the perspective of production and business, some positive developments were observed.

On the demand side, the overall demand for wood-based panels in GTI pilot countries continued to decline, reflecting significant pressure on the market caused by the complex and ever-changing global economic environment, frequent international trade frictions, and the slowdown in the construction and furniture sectors in some countries. This month, the new orders index rose 14.2 percentage points to 41.7%, indicating that although the volume of orders was still declining, the contraction had eased. Looking at data in detail, the decrease in new orders was mainly from international markets.

On the supply side, this month, the supply of wood-based panels in the GTI pilot countries increased after 11 months of decline. The production index reached 58.6%, an increase of 15.0 percentage points from last month, with noticeable recovery in production in both China and Ghana. However, the inventory index of main raw materials was still in the contraction territory at 47.7%. In the context of production expansion and insufficient raw material supply in many countries, manufacturers of wood-based panels need to strengthen their raw material inventory management.

In terms of prices, the purchase price index for raw materials recorded 66.2%, remaining above the critical value for nine consecutive months, indicating persistently rising raw material costs and great operational pressure. This month, enterprises in Gabon, Ghana, Brazil, Mexico, and China saw different degrees of increases in the purchase prices of raw materials. The increase was most significant in Ghana, where high costs of electricity, water, and taxes had added to the burden, and sample enterprises in the country reported a need to reduce production costs and called for financial support from the government or banks. 

Main updates related to the wood-based panel market include: in Brazil, some entities expressed concern over the export outlook of plywood and other products in the face of the rise in US tariffs and anti-dumping investigations in Europe, according to the GTI-Brazil Focal Point and sample enterprises. In January, Mexico's imports of plywood from the US increased by 11%, reaching 10,600 cubic meters. In February, China's exports of plywood and similar laminated wood decreased by 41.9% year-on-year, totaling 0.62 million cubic meters, and from January to February, the total exports amounted to 1.82 million cubic meters, representing a year-on-year decrease of 12.6%.

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