Ὧ䈊㖞Ხ⋈䴆偹ᶢⲛ挅Ḩ妵

'>K>'[E_kXX>,/E_/E/f/f/{GTI-PRODUCERSREPORT

About GGSC

The International Tropical Timber Organization, ITTO for short, is an

Global Green Supply Chains Initiative (GGSC) is part of the Legal andsustainable

Sustainable Supply Chains (LSSC) Programme, which was approved atmanagement and conservation of tropical forests and the expansion

the 53rd session of the International Tropical Timber Council for being

and diversification of international trade in tropical timber from

included into the Biennial Work Programme (BWP) of Internationalsustainably managed and legally harvested forests. It located in

Tropical Timber Organization (ITTO). Launched in 2018 by leading

Yokohama, Japan. At present, there are 76 ITTO members countries.

Chinese enterprises in forest products industry, GGSC became an

ITTO’s membership represents about 90% of the global tropical timberinternational initiative in 2019. Since then, GGSC has been acting as aThe pilot countries for the GTI-Producers include Indonesia, Malaysia,

trade and more than 80% of the world’s tropical forests.

global platform for serving the sustainable development of the forest

Thailand, Gabon, Republic of the Congo, Brazil, and Mexico. In 2022, theproducts industry.

total production quantity of logs and sawnwood in the seven countries

organization

promotingtheGGSC-No. 06/2024

Tracking and monitoring the timber market
trend of the ITTO Producers.

About ITTO
intergovernmental

MONTHLYὯ䈊㖞Ხ⋈䴆偹ᶢⲛ挅Ḩ妵

'>K>'[E_kXX>,/E_/E/f/f/{mentioned above was 289 million cubic meters, accounting for63.1% of the 37 ITTO producers’ total quantity.

Introduction to the GTI-Producers
GTI-Producers is a specialized prosperity index for ITTO producers,
reflecting the development trend of timber harvesting and primaryprocessing in producers represented by the pilot countries.

Declaration
GTI-Producers Report is compiled based on the data provided by the timber enterprises in timber producing countries. The data can not be used in investment
decision-making, but can help to understand the timber industry trend.

1. Calculation Method

2. Interpretation

The GTI-Producers was compiled using a weighted composite index method. That is,

The value of the GTI-Producers is between 0-100%, and 50% is the critical value oftaking all timber producing countries of GTI pilot countries as a whole, each country’s

the index.

The rights to interpret data and intellectual property in the reports are owned by ITTO and GGSC Secretariat jointly. ITTO and GGSC Secretariat hereby grant you a limited,revocable, nonsublicensable license to access and display on your individual device the GTI report (excluding any software code) solely for your personal, non-commercialuse. Without the permission from ITTO and GGSC Secretariat, you shall not copy, download, stream, capture, reproduce, duplicate, archive, upload, modify, translate,publish, broadcast, transmit, retransmit, distribute, perform, display, sell, or otherwise use any GTI-Producers Report.

weight is determined based on the proportion of logs and swan production quantity.
GTI-Producers is calculated based on the weight.

GTI-Producers reading above 50 percent indicates that the industry prosperity isgenerally expanding; below 50 percent indicates that it is generally declining.

Data basis: The data is from ITTO database, and the logs and sawnwood production
quantity is the data over the 5 years (2018-2022). GGSC evaluates the weights
annually to determine whether to adjust them.

Contact Us

Formula:
GTI-Producers = 53%×GTI-Brazil + 28%×GTI-Indonesia + 7%×GTI-Thailand + 6%×Ms. Sydney (Xuting) Gao

Ms. Zuo Ping

Director for Public Relations, GGSC Secretariat

Technical Assistant of Publicity Department, GGSC Secretariat

gaoxuting@itto-ggsc.org

zuoping@itto-ggsc.org

GTI-Malaysia + 4%×GTI-Mexico + 1%×GTI-Gabon + 1%×GTI-ROC

3. Index RepresentativenessThe pilot countries of the GTI-Producers include Indonesia, Malaysia, Thailand, Gabon,
Republic of the Congo, Brazil, Mexico. In 2022, the total production of logs andPlease refer to the GTI Monthly Report so as to find the calculation method of GTI

sawnwood in the seven countries mentioned above was 289 million cubic meters,

index for each producing country.

accounting for 63.1% of the 37 ITTO producers’ total quantity.

GGSC-No. 06/2024

GGSC-No. 06/2024

GTI-Producers Report

GTI-Producers Report

GTI-Producers Report for June 2024

Overview of GTI Indexes for Pilot Countries (%)
2024.52024.6

MoM

Performance

GTI-Producers

39.2

48.08.8 ↑Contract

GTI-Indonesia Index

42.1

51.5

9.4 ↑

ExpandGTI-Malaysia Index

30.1

33.3

3.2 ↑

Contract

GTI-Thailand Index

43.1

59.5

16.4 ↑

ExpandGTI-Gabon Index

37.2

41.2

4.0 ↑

Contract

GTI-ROC Index

40.7

43.2

2.5 ↑

Contract

GTI-Brazil Index

37.9

46.5

8.6 ↑

Contract

GTI-Mexico Index

42.5

47.2

4.7 ↑

Contract

GTI-Producers in June 2024 (%)
59.5
48.0

51.5
41.2

40

43.2

46.5

47.2

33.3

In June 2024, the GTI-Producers registered 48.0% and had stayed below thecritical value (50%) for two consecutive months, indicating a continued downturn
for the overall prosperity of the timber harvesting and primary processing
industries in the pilot producing countries. Encouragingly, the index rose 8.8
percentage points over the previous month, indicating the overall contraction had
eased, primarily due to market recovery in Thailand and Indonesia, and lesscontraction in other producing countries.

GTI-Mexico Index

GTI-Brazil Index

GTI-ROC Index

GTI-Gabon Index

GTI-Thailand Index

GTI-Malaysia Index

GTI-Indonesia Index

GTI-Producers20

41.2% and 43.2%, respectively, both in the contraction range below the criticalvalue, and the harvesting volume in both countries remained largely unchanged
from the previous month. In the Republic of the Congo, the volume of orders
decreased in the domestic market while the volume was relatively stable in theinternational market, and the volume of production was basically the same as thelevel in the previous month. In Gabon, the timber sector was facing challenges
from infrastructure that restricted timber production and transportation, inresponse to which the government was intensifying its efforts to enhance theconstruction and maintenance of roads and other infrastructure, and on thedemand side, the domestic and foreign demand for the country's timber sector
was insufficient, and some enterprises reported a slowdown in the markets ofAsia and Europe, as a result, connecting with the demand side had become themost urgent issue.

In Asia, the GTI indexes for Thailand and Indonesia stood above the critical value(indicating expansion) and registered 59.5% and 51.5%, respectively, while theGTI index for Malaysia was at 33.3% in the contraction range. Specifically, bothThailand and Indonesia saw a significant increase in the respective volume ofharvesting, production and orders, signaling month-over-month improvements on
both supply and demand sides. Harvesting in Malaysia contracted for threeconsecutive months, partly due to the government's control of timber harvestingfor sustainable forest management, for example, the Sarawak state government
had reduced the state's logging rate by about two million cubic meters annually.
In terms of raw material prices, the GTI-Indonesia enterprises reported log prices
in the country were still relatively low, while GTI-Thailand and GTI-Malaysia
enterprises reported rising prices or high costs of raw materials, and in the faceof material problems, they hoped to expand external channels for sourcing raw
materials or find more reliable material distributors.

In Latin America, the GTI indexes for Brazil and Mexico registered 46.5% and47.2%, respectively, both in the contraction range below the critical value. The
volume of timber harvesting was still contracting in both countries, partly due toextreme weather conditions which had delayed the recovery of logging activities.
On the production side, timber production in Brazil resumed growth, and in
Mexico, the decline in the production slowed down. On the demand side in Brazil,
the performance of exports was relatively stable when compare to the previousmonth, but there was a decline in domestic timber trading, while in Mexico, theenterprise had enhanced their ability to secure domestic orders, however, thevolume of orders from the international market continued to decline.

In Africa, the GTI indexes for Gabon and the Republic of the Congo (ROC) were at01

ITTO Producers
Africa (14)Asia & Pacific (10)Latin America (13)• Angola• Gabon• Cambodia• Myanmar• Brazil• Mexico• Benin• Ghana• Fiji• Papua New Guinea• Colombia• Panama• Cameroon• Liberia• India• Philippines• Costa Rica

• Peru• Central African Republic• Madagascar• Indonesia• Thailand• Ecuador• Suriname• Congo• Mali• Malaysia• Viet Nam• Guatemala• Trinidad and Tobago• Côte d'Ivoire• Mozambique• Guyana• Democratic Republicof the Congo• Togo• Honduras• Venezuela(Bolivarian Republic of)02

GGSC-No. 06/2024

GGSC-No. 06/2024

GTI-Producers Report

GTI-Producers Report

GTI-Producers Report for June 2024

Overview of GTI Indexes for Pilot Countries (%)
2024.52024.6

MoM

Performance

GTI-Producers

39.2

48.0

8.8 ↑

Contract

GTI-Indonesia Index

42.1

51.5

9.4 ↑

ExpandGTI-Malaysia Index

30.1

33.3

3.2 ↑

Contract

GTI-Thailand Index

43.1

59.5

16.4 ↑

ExpandGTI-Gabon Index

37.2

41.2

4.0 ↑

Contract

GTI-ROC Index

40.7

43.2

2.5 ↑

Contract

GTI-Brazil Index

37.9

46.5

8.6 ↑

Contract

GTI-Mexico Index

42.5

47.2

4.7 ↑Contract

GTI-Producers in June 2024 (%)
59.5
48.0

51.5
41.2

40

43.2

46.5

47.2

33.3

In June 2024, the GTI-Producers registered 48.0% and had stayed below thecritical value (50%) for two consecutive months, indicating a continued downturn
for the overall prosperity of the timber harvesting and primary processing
industries in the pilot producing countries. Encouragingly, the index rose 8.8
percentage points over the previous month, indicating the overall contraction hadeased, primarily due to market recovery in Thailand and Indonesia, and lesscontraction in other producing countries.

GTI-Mexico Index

GTI-Brazil Index

GTI-ROC Index

GTI-Gabon Index

GTI-Thailand Index

GTI-Malaysia Index

GTI-Indonesia Index

GTI-Producers

20

41.2% and 43.2%, respectively, both in the contraction range below the criticalvalue, and the harvesting volume in both countries remained largely unchanged
from the previous month. In the Republic of the Congo, the volume of orders
decreased in the domestic market while the volume was relatively stable in theinternational market, and the volume of production was basically the same as thelevel in the previous month. In Gabon, the timber sector was facing challenges
from infrastructure that restricted timber production and transportation, inresponse to which the government was intensifying its efforts to enhance theconstruction and maintenance of roads and other infrastructure, and on thedemand side, the domestic and foreign demand for the country's timber sector
was insufficient, and some enterprises reported a slowdown in the markets ofAsia and Europe, as a result, connecting with the demand side had become themost urgent issue.

In Asia, the GTI indexes for Thailand and Indonesia stood above the critical value(indicating expansion) and registered 59.5% and 51.5%, respectively, while theGTI index for Malaysia was at 33.3% in the contraction range. Specifically, bothThailand and Indonesia saw a significant increase in the respective volume of
harvesting, production and orders, signaling month-over-month improvements on
both supply and demand sides. Harvesting in Malaysia contracted for threeconsecutive months, partly due to the government's control of timber harvestingfor sustainable forest management, for example, the Sarawak state government
had reduced the state's logging rate by about two million cubic meters annually.
In terms of raw material prices, the GTI-Indonesia enterprises reported log prices
in the country were still relatively low, while GTI-Thailand and GTI-Malaysia
enterprises reported rising prices or high costs of raw materials, and in the faceof material problems, they hoped to expand external channels for sourcing rawmaterials or find more reliable material distributors.

In Latin America, the GTI indexes for Brazil and Mexico registered 46.5% and47.2%, respectively, both in the contraction range below the critical value. The
volume of timber harvesting was still contracting in both countries, partly due toextreme weather conditions which had delayed the recovery of logging activities.
On the production side, timber production in Brazil resumed growth, and in
Mexico, the decline in the production slowed down. On the demand side in Brazil,
the performance of exports was relatively stable when compare to the previousmonth, but there was a decline in domestic timber trading, while in Mexico, theenterprise had enhanced their ability to secure domestic orders, however, thevolume of orders from the international market continued to decline.

In Africa, the GTI indexes for Gabon and the Republic of the Congo (ROC) were at01

ITTO Producers
Africa (14)Asia & Pacific (10)Latin America (13)• Angola• Gabon• Cambodia• Myanmar• Brazil• Mexico• Benin• Ghana• Fiji• Papua New Guinea• Colombia• Panama• Cameroon• Liberia• India• Philippines• Costa Rica

• Peru• Central African Republic• Madagascar• Indonesia• Thailand• Ecuador• Suriname• Congo• Mali• Malaysia• Viet Nam• Guatemala• Trinidad and Tobago• Côte d'Ivoire• Mozambique• Guyana• Democratic Republicof the Congo• Togo• Honduras• Venezuela(Bolivarian Republic of)02Ὧ䈊㖞Ხ⋈䴆偹ᶢⲛ挅Ḩ妵

'>K>'[E_kXX>,/E_/E/f/f/{GTI-PRODUCERSREPORT

About GGSC

The International Tropical Timber Organization, ITTO for short, is an

Global Green Supply Chains Initiative (GGSC) is part of the Legal andsustainable

Sustainable Supply Chains (LSSC) Programme, which was approved atmanagement and conservation of tropical forests and the expansion

the 53rd session of the International Tropical Timber Council for being

and diversification of international trade in tropical timber fromincluded into the Biennial Work Programme (BWP) of Internationalsustainably managed and legally harvested forests. It located in

Tropical Timber Organization (ITTO). Launched in 2018 by leading

Yokohama, Japan. At present, there are 76 ITTO members countries.

Chinese enterprises in forest products industry, GGSC became an

ITTO’s membership represents about 90% of the global tropical timberinternational initiative in 2019. Since then, GGSC has been acting as aThe pilot countries for the GTI-Producers include Indonesia, Malaysia,

trade and more than 80% of the world’s tropical forests.

global platform for serving the sustainable development of the forest

Thailand, Gabon, Republic of the Congo, Brazil, and Mexico. In 2022, theproducts industry.

total production quantity of logs and sawnwood in the seven countries

organization

promoting

theGGSC-No. 06/2024

Tracking and monitoring the timber market
trend of the ITTO Producers.

About ITTO
intergovernmentalMONTHLYὯ䈊㖞Ხ⋈䴆偹ᶢⲛ挅Ḩ妵

'>K>'[E_kXX>,/E_/E/f/f/{mentioned above was 289 million cubic meters, accounting for63.1% of the 37 ITTO producers’ total quantity.

Introduction to the GTI-Producers
GTI-Producers is a specialized prosperity index for ITTO producers,
reflecting the development trend of timber harvesting and primaryprocessing in producers represented by the pilot countries.

Declaration
GTI-Producers Report is compiled based on the data provided by the timber enterprises in timber producing countries. The data can not be used in investment
decision-making, but can help to understand the timber industry trend.

1. Calculation Method

2. Interpretation

The GTI-Producers was compiled using a weighted composite index method. That is,

The value of the GTI-Producers is between 0-100%, and 50% is the critical value oftaking all timber producing countries of GTI pilot countries as a whole, each country’s

the index.

The rights to interpret data and intellectual property in the reports are owned by ITTO and GGSC Secretariat jointly. ITTO and GGSC Secretariat hereby grant you a limited,revocable, nonsublicensable license to access and display on your individual device the GTI report (excluding any software code) solely for your personal, non-commercial
use. Without the permission from ITTO and GGSC Secretariat, you shall not copy, download, stream, capture, reproduce, duplicate, archive, upload, modify, translate,publish, broadcast, transmit, retransmit, distribute, perform, display, sell, or otherwise use any GTI-Producers Report.

weight is determined based on the proportion of logs and swan production quantity.
GTI-Producers is calculated based on the weight.

GTI-Producers reading above 50 percent indicates that the industry prosperity isgenerally expanding; below 50 percent indicates that it is generally declining.

Data basis: The data is from ITTO database, and the logs and sawnwood production
quantity is the data over the 5 years (2018-2022). GGSC evaluates the weights
annually to determine whether to adjust them.

Contact Us

Formula:
GTI-Producers = 53%×GTI-Brazil + 28%×GTI-Indonesia + 7%×GTI-Thailand + 6%×

Ms. Sydney (Xuting) Gao

Ms. Zuo Ping

Director for Public Relations, GGSC Secretariat

Technical Assistant of Publicity Department, GGSC Secretariat

gaoxuting@itto-ggsc.org

zuoping@itto-ggsc.org

GTI-Malaysia + 4%×GTI-Mexico + 1%×GTI-Gabon + 1%×GTI-ROC

3. Index RepresentativenessThe pilot countries of the GTI-Producers include Indonesia, Malaysia, Thailand, Gabon,
Republic of the Congo, Brazil, Mexico. In 2022, the total production of logs andPlease refer to the GTI Monthly Report so as to find the calculation method of GTI

sawnwood in the seven countries mentioned above was 289 million cubic meters,

index for each producing country.

accounting for 63.1% of the 37 ITTO producers’ total quantity.