Ὧ䈊㖞Ხ⋈䴆偹ᶢⲛ挅Ḩ妵

'>K>'[E_kXX>,/E_/E/f/f/{GTI-WOODBASED PANEL(GTI-WBP) REPORT
Tracking and monitoring the global
woodbased panel market trend.

About ITTO

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

global platform for serving the sustainable development of the forest

Mexico, and China. In 2021, the total production of woodbased

products industry.

panel in the eight countries mentioned above was 210 million

intergovernmentalorganization

promotingtheMONTHLYGGSC-No. 06/2024Ὧ䈊㖞Ხ⋈䴆偹ᶢⲛ挅Ḩ妵

'>K>'[E_kXX>,/E_/E/f/f/{The pilot countries for the GTI-WBP index include Indonesia,Malaysia, Thailand, Gabon, Republic of the Congo, Brazil,

cubic meters, accounting for53.0% of the total global

production volume of woodbased panel.

Introduction to the GTI-Woodbased Panel
GTI-Woodbased Panel (GTI-WBP), a specialized prosperity index for woodbased panel industry,reflecting the development trend of woodbased panel industry in all GTI pilot countries.

Declaration
GTI-WBP report is compiled based on the data provided by the woodbased panel enterprises in the pilot countries. The data can not be used in investment decision-making,Calculation Method

Interpretation

but can help to understand the timber industry trend.

The GTI-WBP index takes leading woodbased panel enterprises in GTI pilot countries as thesurvey objects. Each month, the enterprises need to fill the GTI index questionnaire,including the information of production, orders and export, employees, logistic, etc. Thenthe GTI-WBP index will be calculated and analyzed, and the report will be released at themiddle of the following month.

The value of the index is between 0-100%, and 50% is the critical value of the index.
GTI-WBP index reading above 50 percent indicates that the industry prosperity is generally
expanding; below 50 percent indicates that it is generally declining.

GTI-WBP index contains diffusion index and comprehensive index.

With the support of The International Tropical Timber Organization (ITTO), the GTI platform
has set up focal points in pilot countries, including timber producing and consuming countries.

The 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 report Content.

1. GTI-WBP diffusion index. There are 10 diffusion indices (or called sub-indices) based on
the data from 10 objective questions which covers production , new orders, new export
orders, existing orders, inventory of products, purchasing quantity, purchasing prices ofmain raw materials, inventory of raw material, employees, and delivery time. The diffusionindex is calculated by adding the percentage of enterprises with positive answers to half ofthe percentage with unchanged answers.

Contact UsMs. 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

2. GTI-WBP comprehensive index. GTI-WBP comprehensive index (GTI-WBP index for short)
is calculated based on five diffusion indexes with different weights: production, neworders, inventory of raw material, employees, delivery time. The five diffusion indexes andtheir weights are determined according to their influence on the industrial economy.

Survey Method

At the end of each month, major leading woodbased panel enterprises are organized by
focal points to fill out survey questionnaires. The questionnaire is usually filled out by theperson in charge of production and operation or personnel from the statistics department.
The Global Green Supply Chains Initiative (GGSC) organizes experts to analyze the collected
data and prepare the GTI-WBP index report.

Index RepresentativenessThe pilot countries for the GTI-WBP index include Indonesia, Malaysia, Thailand, Gabon,
Republic of the Congo, Brazil, Mexico and China. In 2021, the total production of woodbased
panel in the eight countries mentioned above was 210 million cubic meters, accounting for53.0% of the total global production volume of woodbased panel.

GGSC-No. 06/2024

GGSC-No. 06/2024
GTI-Woodbased Panel (GTI-WBP) Report

GTI-Woodbased Panel (GTI-WBP) Report

GTI-Woodbased Panel Index in June 2024

Table: Overview of GTI-WBP Sub-Indexes (%)
Apr. 2024

May. 2024

Jun. 2024MoM

Performance

Comprehensive Index

43.1

42.6

46.3

3.7 ↑

Contract

Production Index

47.7

40.8

43.3

2.5 ↑

Contract

New Orders Index

38.6

40.4

48.5

8.1 ↑

Contract

Export Orders Index

43.0

44.9

50.0

5.1 ↑

StableExisting Orders Index

37.1

44.1

44.0

-0.1 ↓

Contract

Inventory Index of Finished Products

50.8

48.5

52.9

4.4 ↑

ExpandPurchase Quantity Index

44.1

39.0

46.4

7.4 ↑

Contract

Purchase Price Index

52.9

51.2

46.2

-5.0 ↓

Contract

Inventory Index of Main Raw Materials

37.3

40.8

53.9

13.1 ↑ExpandEmployees Index

48.5

47.1

46.1

-1.0 ↓Contract

Delivery Time Index

41.0

44.8

42.1

-2.7 ↓Contract

GTI-WBP Comprehensive Index

60

43.1

42.6

46.3

4020
Apr-2024

May-2024

In June, the GTI-Woodbased Panel (GTI-WBP) Index registered 46.3%, an increaseof 3.7 percentage points from the previous month, was below the critical value(50%) for 3 consecutive months, indicating that the business prosperity ofwood-based panel industry represented by the index shrank from last month,
however, the contraction eased.

Jun-2024

alleviate the pressure on capital flows had become a pressing issue for theenterprises. The index also revealed a slight increase in the inventory ofwood-based panels compared with the previous month, due to the overall
insufficient demand and the not timely de-stocking of wood-based panel, as
reflected by the index for finished products inventory which rose above thecritical value to 52.9%.

On the demand side, the new orders index increased 8.5 percentage points to
48.5% near the critical value, indicating that the contraction in orders for thewood-based panel industry eased and there were signs of stabilization.
Particularly, the export orders index had maintained growth for three consecutive
months to reach 50% this month, indicating a gradual stabilization of the overall
export orders for the wood-based panel industry.

From a price perspective, the purchase price index for raw materials (46.2%) fell
below the critical value after two months, indicating a decrease in raw material
costs and a relief in cost pressure for wood-based panel manufacturers.
In terms of market conditions and developments, in June, the GTI-Indonesia
enterprises reported an increase in plywood exports, however, the global market
conditions (especially in Japan) for plywood products were still unstable. TheGTI-Malaysia enterprises reported that plywood prices in June remained weak.
Brazil's plywood exports showed positive momentum, and in May 2024, tropicalplywood exports increased 9% in volume and 11% in value when compared to May
2023, rising to 3,500m³ and US$2.1 million, respectively.

On the supply side, the production index registered 43.3%, below the criticalvalue for three consecutive months, revealing that the total production ofwood-based panels continued to decline. One reason is the downturn in the
global construction sector, leading to overall excess production capacity in thewood-based panel industry and low operating rates for production. However, insome countries, the industry was still expanding production capacity, so how toexpand domestic and overseas sales channels, run down the inventories, and01

Main Challenges Reported by
GTI-WBP Enterprises

Main Suggestions from
GTI-WBP Enterprises• It was difficult to find raw materials for producing products.
(Thailand)• Hope the government could provide policy support to businesses,
thereby promoting the consumption of wood products. (Indonesia)• Excessive rainfall had reduced the entry of raw materials into thefactory and delayed deliveries. The port situation, with limited berthwindows for container to enter the terminal, had caused significant
costs. (Brazil)• Raise consumer awareness of the importance of using wood and wood
products for the protection of the global environment. (Thailand)• Reduce production costs. (Gabon)• Invest in and expand new ports and backport areas to meet the growthin exports. (Brazil)• Demand from overseas buyers for products from non-Merbau species
was hampered by regulations that limit the maximum cross-sectional
area of exportable wood products. (Indonesia)• Regulate the importation of wood products. (Mexico)• Request government assistance to improve the timber market.
(Mexico)• The importation of wood products had an impact on the domestic
market. (Mexico)• The products were difficult to sell, and the recovery of funds wasslow. (China)

02

GGSC-No. 06/2024

GGSC-No. 06/2024
GTI-Woodbased Panel (GTI-WBP) Report

GTI-Woodbased Panel (GTI-WBP) Report

GTI-Woodbased Panel Index in June 2024

Table: Overview of GTI-WBP Sub-Indexes (%)
Apr. 2024

May. 2024

Jun. 2024

MoM

Performance

Comprehensive Index

43.1

42.6

46.3

3.7 ↑

Contract

Production Index

47.7

40.8

43.3

2.5 ↑

Contract

New Orders Index

38.6

40.4

48.5

8.1 ↑

Contract

Export Orders Index

43.0

44.9

50.0

5.1 ↑

StableExisting Orders Index

37.1

44.1

44.0

-0.1 ↓

Contract

Inventory Index of Finished Products

50.8

48.5

52.9

4.4 ↑Expand

Purchase Quantity Index44.1

39.0

46.4

7.4 ↑

Contract

Purchase Price Index

52.9

51.2

46.2

-5.0 ↓

Contract

Inventory Index of Main Raw Materials

37.3

40.8

53.9

13.1 ↑ExpandEmployees Index

48.5

47.1

46.1

-1.0 ↓Contract

Delivery Time Index

41.0

44.8

42.1

-2.7 ↓

Contract

GTI-WBP Comprehensive Index

60

43.1

42.6

46.3

4020
Apr-2024

May-2024

In June, the GTI-Woodbased Panel (GTI-WBP) Index registered 46.3%, an increaseof 3.7 percentage points from the previous month, was below the critical value(50%) for 3 consecutive months, indicating that the business prosperity ofwood-based panel industry represented by the index shrank from last month,
however, the contraction eased.

Jun-2024

alleviate the pressure on capital flows had become a pressing issue for theenterprises. The index also revealed a slight increase in the inventory ofwood-based panels compared with the previous month, due to the overall
insufficient demand and the not timely de-stocking of wood-based panel, as
reflected by the index for finished products inventory which rose above thecritical value to 52.9%.

On the demand side, the new orders index increased 8.5 percentage points to
48.5% near the critical value, indicating that the contraction in orders for thewood-based panel industry eased and there were signs of stabilization.
Particularly, the export orders index had maintained growth for three consecutive
months to reach 50% this month, indicating a gradual stabilization of the overall
export orders for the wood-based panel industry.

From a price perspective, the purchase price index for raw materials (46.2%) fell
below the critical value after two months, indicating a decrease in raw material
costs and a relief in cost pressure for wood-based panel manufacturers.
In terms of market conditions and developments, in June, the GTI-Indonesia
enterprises reported an increase in plywood exports, however, the global market
conditions (especially in Japan) for plywood products were still unstable. TheGTI-Malaysia enterprises reported that plywood prices in June remained weak.
Brazil's plywood exports showed positive momentum, and in May 2024, tropicalplywood exports increased 9% in volume and 11% in value when compared to May
2023, rising to 3,500m³ and US$2.1 million, respectively.

On the supply side, the production index registered 43.3%, below the criticalvalue for three consecutive months, revealing that the total production ofwood-based panels continued to decline. One reason is the downturn in the
global construction sector, leading to overall excess production capacity in thewood-based panel industry and low operating rates for production. However, insome countries, the industry was still expanding production capacity, so how toexpand domestic and overseas sales channels, run down the inventories, and01Main Challenges Reported by
GTI-WBP Enterprises

Main Suggestions from
GTI-WBP Enterprises• It was difficult to find raw materials for producing products.
(Thailand)• Hope the government could provide policy support to businesses,
thereby promoting the consumption of wood products. (Indonesia)• Excessive rainfall had reduced the entry of raw materials into thefactory and delayed deliveries. The port situation, with limited berthwindows for container to enter the terminal, had caused significantcosts. (Brazil)• Raise consumer awareness of the importance of using wood and woodproducts for the protection of the global environment. (Thailand)• Reduce production costs. (Gabon)• Invest in and expand new ports and backport areas to meet the growthin exports. (Brazil)• Demand from overseas buyers for products from non-Merbau species
was hampered by regulations that limit the maximum cross-sectional
area of exportable wood products. (Indonesia)• Regulate the importation of wood products. (Mexico)• Request government assistance to improve the timber market.
(Mexico)• The importation of wood products had an impact on the domesticmarket. (Mexico)• The products were difficult to sell, and the recovery of funds wasslow. (China)

02Ὧ䈊㖞Ხ⋈䴆偹ᶢⲛ挅Ḩ妵'>K>'[E_kXX>,/E_/E/f/f/{GTI-WOODBASED PANEL(GTI-WBP) REPORTTracking and monitoring the global
woodbased panel market trend.

About ITTO

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

global platform for serving the sustainable development of the forest

Mexico, and China. In 2021, the total production of woodbased

products industry.

panel in the eight countries mentioned above was 210 million

intergovernmentalorganization

promotingtheMONTHLYGGSC-No. 06/2024Ὧ䈊㖞Ხ⋈䴆偹ᶢⲛ挅Ḩ妵

'>K>'[E_kXX>,/E_/E/f/f/{The pilot countries for the GTI-WBP index include Indonesia,Malaysia, Thailand, Gabon, Republic of the Congo, Brazil,

cubic meters, accounting for53.0% of the total global

production volume of woodbased panel.

Introduction to the GTI-Woodbased Panel
GTI-Woodbased Panel (GTI-WBP), a specialized prosperity index for woodbased panel industry,reflecting the development trend of woodbased panel industry in all GTI pilot countries.

Declaration
GTI-WBP report is compiled based on the data provided by the woodbased panel enterprises in the pilot countries. The data can not be used in investment decision-making,Calculation Method

Interpretation

but can help to understand the timber industry trend.

The GTI-WBP index takes leading woodbased panel enterprises in GTI pilot countries as thesurvey objects. Each month, the enterprises need to fill the GTI index questionnaire,
including the information of production, orders and export, employees, logistic, etc. Thenthe GTI-WBP index will be calculated and analyzed, and the report will be released at themiddle of the following month.

The value of the index is between 0-100%, and 50% is the critical value of the index.
GTI-WBP index reading above 50 percent indicates that the industry prosperity is generally
expanding; below 50 percent indicates that it is generally declining.

GTI-WBP index contains diffusion index and comprehensive index.

With the support of The International Tropical Timber Organization (ITTO), the GTI platform
has set up focal points in pilot countries, including timber producing and consuming countries.

The 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 report Content.

1. GTI-WBP diffusion index. There are 10 diffusion indices (or called sub-indices) based on
the data from 10 objective questions which covers production , new orders, new export
orders, existing orders, inventory of products, purchasing quantity, purchasing prices ofmain raw materials, inventory of raw material, employees, and delivery time. The diffusionindex is calculated by adding the percentage of enterprises with positive answers to half ofthe percentage with unchanged answers.

Contact UsMs. 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

2. GTI-WBP comprehensive index. GTI-WBP comprehensive index (GTI-WBP index for short)
is calculated based on five diffusion indexes with different weights: production, neworders, inventory of raw material, employees, delivery time. The five diffusion indexes andtheir weights are determined according to their influence on the industrial economy.

Survey Method

At the end of each month, major leading woodbased panel enterprises are organized by
focal points to fill out survey questionnaires. The questionnaire is usually filled out by theperson in charge of production and operation or personnel from the statistics department.
The Global Green Supply Chains Initiative (GGSC) organizes experts to analyze the collected
data and prepare the GTI-WBP index report.

Index RepresentativenessThe pilot countries for the GTI-WBP index include Indonesia, Malaysia, Thailand, Gabon,
Republic of the Congo, Brazil, Mexico and China. In 2021, the total production of woodbased
panel in the eight countries mentioned above was 210 million cubic meters, accounting for53.0% of the total global production volume of woodbased panel.