This report was prepared by GGSC, with support of
ITTO and IPIM, and Focal Points of Indonesia,
Malaysia, Thailand, Gabon, Republic of Congo, Ghana,Brazil, Mexico and China.

GTIREPORT

GTI REPORT 2024
Global Timber Index

MONTHLY
GGSC-No. 07/2024

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ITTO

Contact person: Ms. Yinfeng Li

Contact person: Mr. Qiang Li

Email: ggsc@itto-ggsc.org

Email: li@itto.int

Tel: 86-10-6288 8626
Website: www.itto-ggsc.org

Website: www.itto.int
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THANKS TO THE SUPPORT AND CONTRIBUTION OF
GTI FOCAL POINTSCONTENTS

MexicoChina

ㆍNational Forestry Commission of Mexico (CONAFOR)

ㆍThe Secretariat of the Global Green Supply Chains Initiative (GGSC)

Ghana
ㆍForestry Commission

Republic of the Congo
ㆍMinistry of Forest Economy

ThailandBrazilㆍThai Timber Association (TTA)ㆍSTCP Engenharia de Projetos Ltda

12-13

GTI-ROC Report

14-15

GTI-Ghana Report

16-17

GTI-Brazil ReportIndonesia

18-19

GTI-Mexico Report

ㆍSustainable Forest Management of the
Ministry of Environment and Forestry

20-21

GTI-China Report

22-23

About This Report

Malaysia
ㆍMalaysian Timber Council (MTC)

Gabon
ㆍMinistry of Water and Forests,
Sea and Environment, Responsible
for the Climate Plan and Land Use

ㆍSpecial thanks to Ministry of Plantation
Industries & Commodities (MPIC) andSarawak Timber Association (STA)

01

Overview of the GTI Index

02-05

GTI-Indonesia Report

06-07

GTI-Malaysia Report

08-09

GTI-Thailand Report

10-11

GTI-Gabon ReportGlobal Legal and Sustainable Timber Forum 2024

2024.9.11-12
MGM COTAI
Macao SAR, China
The theme of GLSTF 2024

Together Towards Reliable andEffective Global Timber Supply Chains
HOSTS

ORGANIZERDIAMOND PARTNER

For more information, please contact:
GGSC Secretariat
Ms Gao Xuting (Sydney)
+86 137 1645 6368

WhatsAppWechatgaoxuting@itto-ggsc.org

Registration

THANKS TO THE SUPPORT AND CONTRIBUTION OF
GTI FOCAL POINTSCONTENTS

MexicoChina

ㆍNational Forestry Commission of Mexico (CONAFOR)

ㆍThe Secretariat of the Global Green Supply Chains Initiative (GGSC)

Ghana
ㆍForestry Commission

Republic of the Congo
ㆍMinistry of Forest Economy

ThailandBrazilㆍThai Timber Association (TTA)ㆍSTCP Engenharia de Projetos Ltda

12-13

GTI-ROC Report

14-15

GTI-Ghana Report

16-17

GTI-Brazil ReportIndonesia

18-19

GTI-Mexico Report

ㆍSustainable Forest Management of the
Ministry of Environment and Forestry

20-21

GTI-China Report

22-23

About This Report

Malaysia
ㆍMalaysian Timber Council (MTC)

Gabon
ㆍMinistry of Water and Forests,
Sea and Environment, Responsible
for the Climate Plan and Land Use

ㆍSpecial thanks to Ministry of Plantation
Industries & Commodities (MPIC) andSarawak Timber Association (STA)

01

Overview of the GTI Index

02-05

GTI-Indonesia Report

06-07

GTI-Malaysia Report

08-09

GTI-Thailand Report

10-11

GTI-Gabon Report

(-0#"-5*.#&3*/%&9

GGSC-No. 07/2024

GTI Report 2024

Overview of the GTI Index
Ghana joins GTI Platform, and overall downturn continues in international timber market

Unit:%

GTI-Comprehensive Index
60

GTI REPORT 2024

48.4
48.1
46.8
46.4
46.4
43.5
39.2
37.0

40

25.7

20
Feb-2024
Indonesia

Malaysia

Mar-2024
ThailandApr-2024
Gabon

May-2024
ROC

In July 2024, Ghana officially joined the GTI (Global Timber Index) Platform as a new pilot
country, and the focal point is the Forestry Commission of Ghana. The addition brings thetotal number of GTI pilot countries to ten, and the number of participating enterprises
exceeds 260, marking a 62.5% increase from last year. Starting this month, the GTI-Ghana
monthly indexes will be released, and the two GTI specialized indexes — the GTI-Producers
and the GTI-Woodbased Panel, will also include data from participating enterprises of Ghana.

Ghana

Jun-2024
BrazilJul-2024
MexicoChina

imported products to reduce their impact on domestic products; Ghanaian enterprises
wanted the government to introduce policies to ensure the supply of raw materials;
Indonesian enterprises sought incentives for SFM-certified or legal wood products, and in
the face of low price of logs from natural forests and considering not all of them wereabsorbed by the domestic wood processing industry, the timber enterprises wanted toramp up efforts to expand the market; Gabonese enterprises proposed that the railway
operator SETRAG provide more carriages to certain forestry companies that haveconcessions; and Chinese enterprises were looking to increase the proportion of exports
and shift from the domestic market to the Southeast Asian market.

The GTI Report for July 2024 shows that the overall performance of the global timbermarket was relatively sluggish. The GTI indexes for Thailand, the Republic of the Congo(ROC), Ghana, Indonesia, Gabon, China, Brazil, Mexico, and Malaysia were all below thecritical value of 50%, registering 48.4%, 48.1%, 46.8%, 46.4%, 46.4%, 43.5%, 39.2%,
37.0%, and 25.7%, respectively. However, positive signs were evident in some activities.
For example, the volume of harvesting increased in both Indonesia and Gabon whencompared to the previous month, the number of existing orders for Thai timber enterprises
continued to increase, the volume of production and the number of new orders in ROC
remained stable, and the declining trend of export orders in Malaysia and Mexico had eased.

Recently, the 27th Session of the Committee on Forestry was held at FAO headquarters,Rome, where the FAO released “The State of the World’s Forests 2024 – Forest-sector
innovations towards a more sustainable future”. The report says global wood production isat record levels, at about 4 billion m3 per year. Other news said that the 26th World
Congress of the International Union of Forest Research Organizations (IUFRO) was heldfrom 23 to 29 June 2024 in Stockholm, Sweden, under the theme "Forests and Society
Towards 2050". The statement released at the Congress urges forestry practitioners tomake best use of the knowledge of the global science community, so as to strengthen
forest resilience and climate adaptation, and maintain and enhance the social values offorests for sustainable societies.

In the face of pressures from production and operations, timber enterprises in GTI pilot
countries had put forward various suggestions for tackling challenges in their countries.
For example, Malaysian enterprises expressed hope for government assistant to ease port
congestion; Mexican enterprises suggested that the government impose tariffs on

1. The Global Timber Index (GTI) is an index system that comprehensively reflects the overall trend of global timber production and trade. It is completed by the participation of major ITTO timber producers and consumers
members. The survey covers timber harvesting, trade, manufacturing including production, orders, imports and exports, employees, inventory and raw material prices and other business indicators. It is of a greatsignificance as a guide to business operations, industry investment, and will aid formulation of national policies.
2. The GTI index reflects the monthly prosperity trend of a country's timber market. It does not reflect the competitiveness of a country's timber market, can not be used for ranking or comparing the timber market among
countries.

01

(-0#"-5*.#&3*/%&9

GGSC-No. 07/2024

GTI Report 2024

Overview of the GTI Index
Ghana joins GTI Platform, and overall downturn continues in international timber market

Unit:%

GTI-Comprehensive Index
60

GTI REPORT 2024

48.4
48.1
46.8
46.4
46.4
43.5
39.2
37.0

40

25.7

20
Feb-2024
Indonesia

Malaysia

Mar-2024
ThailandApr-2024
Gabon

May-2024
ROC

In July 2024, Ghana officially joined the GTI (Global Timber Index) Platform as a new pilot
country, and the focal point is the Forestry Commission of Ghana. The addition brings thetotal number of GTI pilot countries to ten, and the number of participating enterprises
exceeds 260, marking a 62.5% increase from last year. Starting this month, the GTI-Ghana
monthly indexes will be released, and the two GTI specialized indexes — the GTI-Producers
and the GTI-Woodbased Panel, will also include data from participating enterprises of Ghana.

Ghana

Jun-2024
BrazilJul-2024
MexicoChina

imported products to reduce their impact on domestic products; Ghanaian enterprises
wanted the government to introduce policies to ensure the supply of raw materials;
Indonesian enterprises sought incentives for SFM-certified or legal wood products, and in
the face of low price of logs from natural forests and considering not all of them wereabsorbed by the domestic wood processing industry, the timber enterprises wanted toramp up efforts to expand the market; Gabonese enterprises proposed that the railway
operator SETRAG provide more carriages to certain forestry companies that haveconcessions; and Chinese enterprises were looking to increase the proportion of exports
and shift from the domestic market to the Southeast Asian market.

The GTI Report for July 2024 shows that the overall performance of the global timbermarket was relatively sluggish. The GTI indexes for Thailand, the Republic of the Congo(ROC), Ghana, Indonesia, Gabon, China, Brazil, Mexico, and Malaysia were all below thecritical value of 50%, registering 48.4%, 48.1%, 46.8%, 46.4%, 46.4%, 43.5%, 39.2%,
37.0%, and 25.7%, respectively. However, positive signs were evident in some activities.
For example, the volume of harvesting increased in both Indonesia and Gabon whencompared to the previous month, the number of existing orders for Thai timber enterprises
continued to increase, the volume of production and the number of new orders in ROC
remained stable, and the declining trend of export orders in Malaysia and Mexico had eased.

Recently, the 27th Session of the Committee on Forestry was held at FAO headquarters,Rome, where the FAO released “The State of the World’s Forests 2024 – Forest-sector
innovations towards a more sustainable future”. The report says global wood production isat record levels, at about 4 billion m3 per year. Other news said that the 26th World
Congress of the International Union of Forest Research Organizations (IUFRO) was heldfrom 23 to 29 June 2024 in Stockholm, Sweden, under the theme "Forests and Society
Towards 2050". The statement released at the Congress urges forestry practitioners tomake best use of the knowledge of the global science community, so as to strengthen
forest resilience and climate adaptation, and maintain and enhance the social values offorests for sustainable societies.

In the face of pressures from production and operations, timber enterprises in GTI pilot
countries had put forward various suggestions for tackling challenges in their countries.
For example, Malaysian enterprises expressed hope for government assistant to ease port
congestion; Mexican enterprises suggested that the government impose tariffs on

1. The Global Timber Index (GTI) is an index system that comprehensively reflects the overall trend of global timber production and trade. It is completed by the participation of major ITTO timber producers and consumers
members. The survey covers timber harvesting, trade, manufacturing including production, orders, imports and exports, employees, inventory and raw material prices and other business indicators. It is of a greatsignificance as a guide to business operations, industry investment, and will aid formulation of national policies.
2. The GTI index reflects the monthly prosperity trend of a country's timber market. It does not reflect the competitiveness of a country's timber market, can not be used for ranking or comparing the timber market among
countries.

01

GGSC-No. 07/2024

GTI-Indonesia Report

GTI Report 2024

GTI-Indonesia Index in July 2024

Table: Overview of GTI-Indonesia Sub-Indexes (%)

Unit: %

GTI-Indonesia Comprehensive Index
80
60

44.0

48.8

42.1

37.1

51.5

46.4

40
20

2024.022024.032024.04

2024.052024.06

2024.07

MoM

Performance

Comprehensive Index

44.0

37.1

48.8

42.1

51.5

46.4

-5.1 ↓

Contract

Harvesting Index

70.0

56.5

54.3

62.5

76.1

66.7

-9.4 ↓

ExpandProduction Index

50.0

20.0

62.5

28.6

57.1

37.5

-19.6 ↓

Contract

New Orders Index

44.0

50.0

45.2

50.0

51.7

50.0

-1.7 ↓

StableExport Orders Index

40.0

50.0

35.7

58.3

66.7

37.5

-29.2 ↓

Contract

Existing Orders Index

48.0

51.8

50.0

43.5

45.0

53.6

8.6 ↑

ExpandInventory Index of Finished Products

58.0

48.2

58.1

54.8

66.7

73.2

6.5 ↑

ExpandPurchase Quantity Index

44.4

20.0

50.0

65.0

50.0

50.0

0.0

StablePurchase Price Index

40.0

50.0

53.8

54.2

54.2

50.0

-4.2 ↓

StableInventory Index of Main Raw Materials

45.0

25.0

46.2

50.0

58.3

61.1

2.8 ↑

ExpandEmployees Index

42.0

44.6

43.5

41.9

48.3

44.6

-3.7 ↓

Contract

Delivery Time Index

36.0

37.5

41.9

43.5

41.7

46.4

4.7 ↑

Contract0
Feb-2024

Mar-2024

Apr-2024

May-2024

In June, Indonesia's exports amounted to US$20.84 billion, and imports stood at
US$18.45 billion, resulting in a trade surplus of US$2.39 billion. The IndonesianFinancial System Stability Committee (KSSK), composed of agencies such as the
Ministry of Finance and the Central Bank, predicted that Indonesia's economy isexpected to grow by 5.2% in 2024, and in the future, the Indonesian Rupiah isanticipated to run stably and appreciation is possible. From June 27 to 28, abusiness meeting was held by the Directorate of Forest Product Processing andMarketing under the Ministry of Environment and Forestry. During the meeting,
upstream and downstream business actors expressed their commitment to work
together to revitalize and boost the performance of the timber industry in the
country. They will strengthen the collaboration in the wood supply chain fromupstream to downstream to produce high-quality export products. Additionally,
they will promote the use of mixed forest wood to expand market share.

Jun-2024

Jul-2024

represented by the GTI-Indonesia index shrank from last month. This month, thevolume of harvesting in Indonesia continued to grow, while the production
activities had slowed down, and the inventory of raw materials continued toincrease. On the consumption side, there was a significant decline in the export
market, however, due to the growth in domestic demand, the overall volume oforders remained stable.
As for the 11 sub-indexes, four indexes (harvesting, existing orders, inventory offinished products, and inventory of main raw materials) were above the criticalvalue of 50%, three indexes (new orders, purchase quantity, and purchase price)
were at the critical value, while four indexes (production, export orders,
employees, and delivery time) were below the critical value. Compared to theprevious month, the indexes for existing orders, inventory of finished products,
inventory of main raw materials, and delivery time increased by 2.8-8.6
percentage points, the index for purchase quantity was unchanged from theprevious month, while the indexes for harvesting, production, new orders, export
orders, purchase price, and employees declined by 1.7-29.2 percentage points.

In July, the GTI-Indonesia index registered 46.4%, a decrease of 5.1 percentage
points from the previous month, fell below the critical value (50%) after one
month, indicating the business prosperity of the superior timber enterprises

02

03

GGSC-No. 07/2024

GTI-Indonesia Report

GTI Report 2024

GTI-Indonesia Index in July 2024

Table: Overview of GTI-Indonesia Sub-Indexes (%)

Unit: %

GTI-Indonesia Comprehensive Index
80
60

44.0

48.8

42.1

37.1

51.5

46.4

40
20

2024.022024.032024.04

2024.052024.06

2024.07

MoM

Performance

Comprehensive Index

44.0

37.1

48.8

42.1

51.5

46.4

-5.1 ↓

Contract

Harvesting Index

70.0

56.5

54.3

62.5

76.1

66.7

-9.4 ↓

ExpandProduction Index

50.0

20.0

62.5

28.6

57.1

37.5

-19.6 ↓

Contract

New Orders Index

44.0

50.0

45.2

50.0

51.7

50.0

-1.7 ↓

StableExport Orders Index

40.0

50.0

35.7

58.3

66.7

37.5

-29.2 ↓

Contract

Existing Orders Index

48.0

51.8

50.0

43.5

45.0

53.6

8.6 ↑

ExpandInventory Index of Finished Products

58.0

48.2

58.1

54.8

66.7

73.2

6.5 ↑

ExpandPurchase Quantity Index

44.4

20.0

50.0

65.0

50.0

50.0

0.0

StablePurchase Price Index

40.0

50.0

53.8

54.2

54.2

50.0

-4.2 ↓

StableInventory Index of Main Raw Materials

45.0

25.0

46.2

50.0

58.3

61.1

2.8 ↑

ExpandEmployees Index

42.0

44.6

43.5

41.9

48.3

44.6

-3.7 ↓

Contract

Delivery Time Index

36.0

37.5

41.9

43.5

41.7

46.4

4.7 ↑

Contract0
Feb-2024

Mar-2024

Apr-2024

May-2024

In June, Indonesia's exports amounted to US$20.84 billion, and imports stood at
US$18.45 billion, resulting in a trade surplus of US$2.39 billion. The IndonesianFinancial System Stability Committee (KSSK), composed of agencies such as the
Ministry of Finance and the Central Bank, predicted that Indonesia's economy isexpected to grow by 5.2% in 2024, and in the future, the Indonesian Rupiah isanticipated to run stably and appreciation is possible. From June 27 to 28, abusiness meeting was held by the Directorate of Forest Product Processing andMarketing under the Ministry of Environment and Forestry. During the meeting,
upstream and downstream business actors expressed their commitment to work
together to revitalize and boost the performance of the timber industry in the
country. They will strengthen the collaboration in the wood supply chain fromupstream to downstream to produce high-quality export products. Additionally,
they will promote the use of mixed forest wood to expand market share.

Jun-2024

Jul-2024

represented by the GTI-Indonesia index shrank from last month. This month, thevolume of harvesting in Indonesia continued to grow, while the production
activities had slowed down, and the inventory of raw materials continued toincrease. On the consumption side, there was a significant decline in the export
market, however, due to the growth in domestic demand, the overall volume oforders remained stable.
As for the 11 sub-indexes, four indexes (harvesting, existing orders, inventory offinished products, and inventory of main raw materials) were above the criticalvalue of 50%, three indexes (new orders, purchase quantity, and purchase price)
were at the critical value, while four indexes (production, export orders,
employees, and delivery time) were below the critical value. Compared to theprevious month, the indexes for existing orders, inventory of finished products,
inventory of main raw materials, and delivery time increased by 2.8-8.6
percentage points, the index for purchase quantity was unchanged from theprevious month, while the indexes for harvesting, production, new orders, export
orders, purchase price, and employees declined by 1.7-29.2 percentage points.

In July, the GTI-Indonesia index registered 46.4%, a decrease of 5.1 percentage
points from the previous month, fell below the critical value (50%) after one
month, indicating the business prosperity of the superior timber enterprises

02

03

GGSC-No. 07/2024

GTI-Indonesia Report

GTI Report 2024

Brief on Indonesian Timber Industry• In July 2024, as the log market was still sluggish and logs produced by naturalforest concessions were not being absorbed by the industry, log stocks from naturalforest concessions increased and prices stagnated.

• In July 2024, overall (nationally) there was an increase in log production whencompared to the previous month, log production from natural forest concessions
increased by 5.76%, while log production from plantation forest concessions
increased by 13.33%. Meanwhile, when compared on a year to year basis with July
2023, log production from natural forest concessions decreased by 13.13%, and log
production from plantation forest concessions increased by 1.58%.

• For exports of processed wood products in July 2024 compared to June 2024, whenviewed from the overall export value there was an increase of 23.40%. Meanwhile,when viewed from the type of product, there were variations in increase and decrease,
where products that have increased in export value were: Wood Furniture, Panels,
Paper, Veneer, and Woodworking. Meanwhile, products that experienced a decrease inexport value were: Prefabricated Buildings, Chipwood, Crafts and Pulp.

• The condition of log production in July 2024 which experienced an increase whencompared to the previous month, and the variation of increases and decreases whencompared on a year to year basis with July 2023 was due to several factors, including,the first factor for log production from natural forests was more influenced by efforts
to fulfill the production target approved by the Government considering that it hasentered July - August 2024, where the realization of log production is one of theperformance indicators of each concession company, but on the other hand because
a lot of roundwood from natural forests is not all absorbed by the domestic market
and the wood processing industry, it has an impact on increasing log stocks fromnatural forests. The second factor for log production from plantation forests wasmore likely to be influenced by the need for raw materials in the processing industry
whose raw materials were from plantation wood and the relatively more stable exportof processed wood products. The third factor is the tendency to shift the woodprocessing industry, which has been using raw materials from natural forest logs, togradually switch to using plantation wood raw materials (non-pulp and paper), which
are currently being developed in many rights/community forests.

Main Challenges Reported by
GTI-Indonesia Enterprises

Main Suggestions from
GTI-Indonesia Enterprises• There was a lack of orders for logs and the low log prices were
below the costs of production.

• Need policy relaxation by reducing the burden imposed on companies,
both in the form of taxes and non-taxes.

• Log production of some enterprises fell significantly, due todamage to heavy equipment in harvesting and transportation
activities.

• Develop multi-forestry business activities that are made possible by
new regulations.
• Join international voluntary forestry certification schemes as well as
making various preparations to respond to the dynamics that aredeveloping at various levels, especially at the global level.

• The wood processing company's export activities were still affectedby the geopolitical turmoil and the war.

• Make agreements with buyers to increase the selling price of logs from
the Meranti (Shorea spp.) group.

• The roads in the concession areas become public, and enterprises
needed to obtain prior approval from the local government before
using them.

• Repair or replace damaged heavy equipment parts for harvesting andtransportation activities, so that operations in the field return to normal.

• The global market for plywood products was still unstable,
especially in Japan, which was the main export destination forplywood.

• Encourage and promote the marketing of plywood products andencourage the provision of incentives for SFM-certified or legal wood
products from various certification schemes in the global and domestic
markets.

• Log orders received from buyers or partners were not enough, andthe selling prices of logs were still relatively low. On the other
hand, enterprises still had to incur high operational costs.
Information provided by GTI-Indonesia Focal Point• Hope for government intervention to develop the domestic wood productmarket and develop diversified processed wood products that canabsorb logs as well as provide incentives for companies that manage
forests sustainably.

• The Indonesian rupiah depreciated against the US dollar, leading toan increase in the operational costs for businesses.

• Prepare and develop multiple forestry businesses that are possible
under current regulations, in order to improve the efficiency of forest
resource utilization, where in one permit the utilization of timber forest
products, non-timber forest products, and environmental services canbe carried out.
• Improve the performance of the domestic market and the export market
for processed wood products with the support of government policies,
both in the form of policy relaxation, market diversification, and policies
for purchasing wood products in government projects. In addition,
promotion and incentives for SFM-certified and/or legality-certified
processed wood products are also needed.
• To overcome the low price of logs from natural forests and not all ofthem are absorbed by the domestic wood processing industry, efforts
and breakthroughs in both technique and policy are needed, including
relaxation of wood product marketing policies by strengthening andfinding alternative domestic and export markets.

04

05

GGSC-No. 07/2024

GTI-Indonesia Report

GTI Report 2024

Brief on Indonesian Timber Industry• In July 2024, as the log market was still sluggish and logs produced by naturalforest concessions were not being absorbed by the industry, log stocks from naturalforest concessions increased and prices stagnated.

• In July 2024, overall (nationally) there was an increase in log production whencompared to the previous month, log production from natural forest concessions
increased by 5.76%, while log production from plantation forest concessions
increased by 13.33%. Meanwhile, when compared on a year to year basis with July
2023, log production from natural forest concessions decreased by 13.13%, and log
production from plantation forest concessions increased by 1.58%.

• For exports of processed wood products in July 2024 compared to June 2024, whenviewed from the overall export value there was an increase of 23.40%. Meanwhile,when viewed from the type of product, there were variations in increase and decrease,
where products that have increased in export value were: Wood Furniture, Panels,
Paper, Veneer, and Woodworking. Meanwhile, products that experienced a decrease inexport value were: Prefabricated Buildings, Chipwood, Crafts and Pulp.

• The condition of log production in July 2024 which experienced an increase whencompared to the previous month, and the variation of increases and decreases whencompared on a year to year basis with July 2023 was due to several factors, including,the first factor for log production from natural forests was more influenced by efforts
to fulfill the production target approved by the Government considering that it hasentered July - August 2024, where the realization of log production is one of theperformance indicators of each concession company, but on the other hand because
a lot of roundwood from natural forests is not all absorbed by the domestic market
and the wood processing industry, it has an impact on increasing log stocks fromnatural forests. The second factor for log production from plantation forests wasmore likely to be influenced by the need for raw materials in the processing industry
whose raw materials were from plantation wood and the relatively more stable exportof processed wood products. The third factor is the tendency to shift the woodprocessing industry, which has been using raw materials from natural forest logs, togradually switch to using plantation wood raw materials (non-pulp and paper), which
are currently being developed in many rights/community forests.

Main Challenges Reported by
GTI-Indonesia Enterprises

Main Suggestions from
GTI-Indonesia Enterprises• There was a lack of orders for logs and the low log prices were
below the costs of production.

• Need policy relaxation by reducing the burden imposed on companies,
both in the form of taxes and non-taxes.

• Log production of some enterprises fell significantly, due todamage to heavy equipment in harvesting and transportation
activities.

• Develop multi-forestry business activities that are made possible by
new regulations.
• Join international voluntary forestry certification schemes as well as
making various preparations to respond to the dynamics that aredeveloping at various levels, especially at the global level.

• The wood processing company's export activities were still affectedby the geopolitical turmoil and the war.

• Make agreements with buyers to increase the selling price of logs from
the Meranti (Shorea spp.) group.

• The roads in the concession areas become public, and enterprises
needed to obtain prior approval from the local government before
using them.

• Repair or replace damaged heavy equipment parts for harvesting andtransportation activities, so that operations in the field return to normal.

• The global market for plywood products was still unstable,
especially in Japan, which was the main export destination forplywood.

• Encourage and promote the marketing of plywood products andencourage the provision of incentives for SFM-certified or legal wood
products from various certification schemes in the global and domestic
markets.

• Log orders received from buyers or partners were not enough, andthe selling prices of logs were still relatively low. On the other
hand, enterprises still had to incur high operational costs.
Information provided by GTI-Indonesia Focal Point• Hope for government intervention to develop the domestic wood productmarket and develop diversified processed wood products that canabsorb logs as well as provide incentives for companies that manage
forests sustainably.

• The Indonesian rupiah depreciated against the US dollar, leading toan increase in the operational costs for businesses.

• Prepare and develop multiple forestry businesses that are possible
under current regulations, in order to improve the efficiency of forest
resource utilization, where in one permit the utilization of timber forest
products, non-timber forest products, and environmental services canbe carried out.
• Improve the performance of the domestic market and the export market
for processed wood products with the support of government policies,
both in the form of policy relaxation, market diversification, and policies
for purchasing wood products in government projects. In addition,
promotion and incentives for SFM-certified and/or legality-certified
processed wood products are also needed.
• To overcome the low price of logs from natural forests and not all ofthem are absorbed by the domestic wood processing industry, efforts
and breakthroughs in both technique and policy are needed, including
relaxation of wood product marketing policies by strengthening andfinding alternative domestic and export markets.

04

05

GGSC-No. 07/2024

GTI-Malaysia Report

GTI Report 2024

GTI-Malaysia Index in July 2024

Table: Overview of GTI-Malaysia Sub-Indexes (%)
2024.022024.032024.04

2024.052024.06

2024.07

MoM

Performance

Comprehensive Index

23.2

25.7

31.1

30.1

33.3

25.7

-7.6 ↓

Contract

Harvesting Index

25.0

56.3

31.3

25.0

43.8

31.3

-12.5 ↓

Contract80

Production Index

16.7

16.7

25.0

27.8

33.3

11.1

-22.2 ↓

Contract60

New Orders Index

15.0

30.0

30.0

25.0

35.0

25.0

-10.0 ↓

Contract

Export Orders Index

20.0

27.8

22.2

27.8

27.8

33.3

5.5 ↑

Contract

Existing Orders Index

25.0

10.0

15.0

20.0

25.0

35.0

10.0 ↑

Contract

Inventory Index of Finished Products

40.0

50.0

61.1

35.0

55.0

50.0

-5.0 ↓

StablePurchase Quantity Index

16.7

16.7

16.7

38.9

27.8

27.8

0.0

Contract

Purchase Price Index

38.9

55.6

50.0

44.4

56.3

66.7

10.4 ↑

ExpandInventory Index of Main Raw Materials

25.0

33.3

38.9

44.4

44.4

44.4

0.0

Contract

Employees Index

35.0

25.0

35.0

35.0

25.0

30.0

5.0 ↑

Contract

Delivery Time Index

33.3

27.8

33.3

27.8

33.3

33.3

0.0

Contract

Unit: %

GTI-Malaysia Comprehensive Index

40

23.2

25.7

31.1

30.1

33.3

25.7

20
0
Feb-2024

Mar-2024

Apr-2024

May-2024

In June, Malaysia's exports reached RM126.05 billion and imports stood at RM111.76 billion,
thus resulting in a trade surplus of RM14.29 billion. Recently, Muar Furniture Associationpresident Steve Ong said some furniture manufacturers in Malaysia were forced to cancel ordelay orders due to insufficient raw materials such as rubber wood, therefore, he urged thegovernment to intervene by limiting the export of rubber wood to prioritize local
manufacturers. Sarawak Deputy Premier Datuk Amar Awang Tengah Ali Hasan emphasized
the importance of aligning the state’s forest management with international standards, which
in turn would allow timber products to be competitively marketed globally. He also said thatthe government planned to boost income from forest resources by adopting more sustainable
methods. Malaysian Deputy Investment, Trade and Industry Minister Liew Chin Tong said
carbon pricing, trading, and taxation are critical aspects of the decarbonization agenda, andMalaysia would soon begin carbon pricing to facilitate carbon trading and explore carbon tax.

Jun-2024

Jul-2024

As for the 11 sub-indexes, the purchase price index was above the critical value of 50%, theinventory index of finished products was at the critical value, while the remaining 9 indexes
were all below the critical value. Compared to the previous month, the indexes for export
orders, existing orders, purchase price, and employees increased by 5.0-10.4 percentage
points; the indexes for purchase quantity, inventory of main raw materials, and delivery time
were unchanged from the previous month; and the indexes for harvesting, production, neworders, and inventory of finished products declined by 5.0-22.2 percentage points.

Main Challenges Reported
by GTI-Malaysia Enterprises

In July, the GTI-Malaysia index registered 25.7%, a decrease of 7.6 percentage points fromthe previous month, was below the critical value (50%) for 21 consecutive months, indicatingthat the business prosperity of the superior timber enterprises represented by the
GTI-Malaysia index shrank from last month. In Malaysia this month, both harvesting andproduction continued the downward trend in volume, and at the same time, domestic andoverseas demand remained sluggish. New orders continued to decrease compared to theprevious month, and due to factors such as the depreciation of the Malaysian ringgit, thedecline in export orders had eased.

Main Suggestions from
GTI-Malaysia Enterprises• Demand for timber was insufficient.

• Slow down production.

• Buyer’s costs increased due to the depreciation of Japanese Yen.

• Retain woodchips for local consumption.

• Freight rate increased, and there was a shortage of container space.

• Need government assistant to ease port congestion.

• Orders and shipment volume declined.

• Hope the government could take steps to stimulate the usage of sawn timber inconstruction industries.

• Raw material supply from concession companies was inconsistent, due to thepoor weather.

• Supply more certified sustainable logs to the market.

• Orders were not enough, and the costs for freight to USA increased.

• It's suggested that the government increase spending on building andinfrastructure expansion, so as to increase consumption of building materials.

• The shipping period for imported raw materials was extended.
• Costs of raw materials (e.g., woodwaste) were high.

06

07

GGSC-No. 07/2024

GTI-Malaysia Report

GTI Report 2024

GTI-Malaysia Index in July 2024

Table: Overview of GTI-Malaysia Sub-Indexes (%)
2024.022024.032024.04

2024.052024.06

2024.07

MoM

Performance

Comprehensive Index

23.2

25.7

31.1

30.1

33.3

25.7

-7.6 ↓

Contract

Harvesting Index

25.0

56.3

31.3

25.0

43.8

31.3

-12.5 ↓

Contract80

Production Index

16.7

16.7

25.0

27.8

33.3

11.1

-22.2 ↓

Contract60

New Orders Index

15.0

30.0

30.0

25.0

35.0

25.0

-10.0 ↓

Contract

Export Orders Index

20.0

27.8

22.2

27.8

27.8

33.3

5.5 ↑

Contract

Existing Orders Index

25.0

10.0

15.0

20.0

25.0

35.0

10.0 ↑

Contract

Inventory Index of Finished Products

40.0

50.0

61.1

35.0

55.0

50.0

-5.0 ↓

StablePurchase Quantity Index

16.7

16.7

16.7

38.9

27.8

27.8

0.0

Contract

Purchase Price Index

38.9

55.6

50.0

44.4

56.3

66.7

10.4 ↑

ExpandInventory Index of Main Raw Materials

25.0

33.3

38.9

44.4

44.4

44.4

0.0

Contract

Employees Index

35.0

25.0

35.0

35.0

25.0

30.0

5.0 ↑

Contract

Delivery Time Index

33.3

27.8

33.3

27.8

33.3

33.3

0.0

Contract

Unit: %

GTI-Malaysia Comprehensive Index

40

23.2

25.7

31.1

30.1

33.3

25.7

20
0
Feb-2024

Mar-2024

Apr-2024

May-2024

In June, Malaysia's exports reached RM126.05 billion and imports stood at RM111.76 billion,
thus resulting in a trade surplus of RM14.29 billion. Recently, Muar Furniture Associationpresident Steve Ong said some furniture manufacturers in Malaysia were forced to cancel ordelay orders due to insufficient raw materials such as rubber wood, therefore, he urged thegovernment to intervene by limiting the export of rubber wood to prioritize local
manufacturers. Sarawak Deputy Premier Datuk Amar Awang Tengah Ali Hasan emphasized
the importance of aligning the state’s forest management with international standards, which
in turn would allow timber products to be competitively marketed globally. He also said thatthe government planned to boost income from forest resources by adopting more sustainable
methods. Malaysian Deputy Investment, Trade and Industry Minister Liew Chin Tong said
carbon pricing, trading, and taxation are critical aspects of the decarbonization agenda, andMalaysia would soon begin carbon pricing to facilitate carbon trading and explore carbon tax.

Jun-2024

Jul-2024

As for the 11 sub-indexes, the purchase price index was above the critical value of 50%, theinventory index of finished products was at the critical value, while the remaining 9 indexes
were all below the critical value. Compared to the previous month, the indexes for export
orders, existing orders, purchase price, and employees increased by 5.0-10.4 percentage
points; the indexes for purchase quantity, inventory of main raw materials, and delivery time
were unchanged from the previous month; and the indexes for harvesting, production, neworders, and inventory of finished products declined by 5.0-22.2 percentage points.

Main Challenges Reported
by GTI-Malaysia Enterprises

In July, the GTI-Malaysia index registered 25.7%, a decrease of 7.6 percentage points fromthe previous month, was below the critical value (50%) for 21 consecutive months, indicatingthat the business prosperity of the superior timber enterprises represented by the
GTI-Malaysia index shrank from last month. In Malaysia this month, both harvesting andproduction continued the downward trend in volume, and at the same time, domestic andoverseas demand remained sluggish. New orders continued to decrease compared to theprevious month, and due to factors such as the depreciation of the Malaysian ringgit, thedecline in export orders had eased.

Main Suggestions from
GTI-Malaysia Enterprises• Demand for timber was insufficient.

• Slow down production.

• Buyer’s costs increased due to the depreciation of Japanese Yen.

• Retain woodchips for local consumption.

• Freight rate increased, and there was a shortage of container space.

• Need government assistant to ease port congestion.

• Orders and shipment volume declined.

• Hope the government could take steps to stimulate the usage of sawn timber inconstruction industries.

• Raw material supply from concession companies was inconsistent, due to thepoor weather.

• Supply more certified sustainable logs to the market.

• Orders were not enough, and the costs for freight to USA increased.

• It's suggested that the government increase spending on building andinfrastructure expansion, so as to increase consumption of building materials.

• The shipping period for imported raw materials was extended.
• Costs of raw materials (e.g., woodwaste) were high.

06

07

GGSC-No. 07/2024

GTI-Thailand Report

GTI Report 2024

GTI-Thailand Index in July 2024

Table: Overview of GTI-Thailand Sub-Indexes (%)

Unit: %

GTI-Thailand Comprehensive Index
80
60

45.6

54.8

59.5
44.7

48.4

43.1

40
20

2024.022024.032024.04

2024.052024.06

2024.07

MoM

Performance

Comprehensive Index

45.6

54.8

44.7

43.1

59.5

48.4

-11.1 ↓

Contract

Harvesting Index

41.7

65.0

33.3

37.5

56.3

50.0

-6.3 ↓

StableProduction Index

45.8

64.3

36.7

41.7

63.6

46.4

-17.2 ↓

Contract

New Orders Index

37.5

57.1

50.0

50.0

70.8

46.9

-23.9 ↓

Contract

Export Orders Index

50.0

68.8

62.5

57.1

70.0

50.0

-20.0 ↓

StableExisting Orders Index

50.0

50.0

50.0

46.2

66.7

65.6

-1.1 ↓

ExpandInventory Index of Finished Products

45.8

32.1

42.9

38.5

41.7

34.4

-7.3 ↓

Contract

Purchase Quantity Index

33.3

53.8

42.3

45.8

63.6

42.3

-21.3 ↓

Contract

Purchase Price Index

45.8

50.0

42.9

61.5

54.2

53.6

-0.6 ↓

ExpandInventory Index of Main Raw Materials

45.8

46.4

46.4

26.9

41.7

36.7

-5.0 ↓

Contract

Employees Index

54.2

50.0

50.0

46.2

50.0

53.1

3.1 ↑

ExpandDelivery Time Index

50.0

46.4

39.3

38.5

54.2

56.3

2.1 ↑

Expand0
Feb-2024

Mar-2024

Apr-2024

May-2024

The Thai government recently announced the cancellation of the tax-free policy
for imported goods valued under 1,500 baht. Starting from July 5, 2024, all
low-value imports will be subject to a 7% value-added tax (VAT). The change aims
to reduce the competitiveness of cheap imported goods and create a faircompetition environment for local businesses. In the second quarter of this year,
the country’s price index for standard home construction rose by 3.8%, with thebiggest increases seen in the prices of wood and wooden products, as well aslabor wages, for example, prices for formwork wood, framework wood, flooringand doors increased by 6.8%, and the increase was mainly driven by operational
and transportation costs. News from Thai Rubber Wood Association said a newround of increases in rubber wood prices had begun. China is the main market for
rubber wood from Thailand, and according to data from Chinese customs, in thefirst five months of 2024, the volume of rubber wood exported from Thailand to
China increased by 27%, reaching 2.12 million cubic meters. The trade value alsorose by 32%, hitting over US$530 million.

Jun-2024

Jul-2024

month, indicating that the business prosperity of the superior timber enterprises
represented by the GTI-Thailand index shrank from last month. In Thailand thismonth, both the supply and demand sides of the Thai timber sector were in aslight decline, however, the volume of existing orders had further increased,
which in the short term, could support the stability in wood production.
Meanwhile, it’s worth noting the purchase prices of raw materials had been rising
for three consecutive months.
As for the eleven sub-indexes, the indexes for existing orders, purchase price,employees, and delivery time were all above the critical value of 50%, the indexes
for harvesting and export orders were at the critical value, while the indexes for
production, new orders, inventory of finished products, purchase quantity, andinventory of main raw materials were below the critical value. Compared to theprevious month, the indexes for employees and delivery time increased by 2.1-3.1
percentage points, and the remaining 9 indexes declined by 1.1-23.9 percentage
points.

In July, the GTI-Thailand index registered 48.4%, a decrease of 11.1 percentage
points from the previous month, fell below the critical value (50%) after one

08

Main Challenges Reported by
GTI-Thailand Enterprises

Main Suggestions from
GTI-Thailand Enterprises• Orders were not enough for enterprises.
• Some customers were overdue in payment.
• Timber certification documents were needed.
• Rains restricted the production and operations.
• There was a lack of quality employees.
• Production costs and expenses were increasing.
• Some enterprises were unable to produce products in time and were lack oftechnology• The types of woodworking products were becoming more complex, increasing
the difficulty in production.
• Raw materials for wood production were insufficient, and heavy rains madetransportation difficult.

• Request for support from the government.
• Internal problems must be solved first.
• Try to manage cash flow and negotiate with customers.
• The government certifies documents related to forests and wood products.
• Develop the skills and expertise of the workforce. Upgrade the machinery to
make it more modern.

09

GGSC-No. 07/2024

GTI-Thailand Report

GTI Report 2024

GTI-Thailand Index in July 2024

Table: Overview of GTI-Thailand Sub-Indexes (%)

Unit: %

GTI-Thailand Comprehensive Index
80
60

45.6

54.8

59.5
44.7

48.4

43.1

40
20

2024.022024.032024.04

2024.052024.06

2024.07

MoM

Performance

Comprehensive Index

45.6

54.8

44.7

43.1

59.5

48.4

-11.1 ↓

Contract

Harvesting Index

41.7

65.0

33.3

37.5

56.3

50.0

-6.3 ↓

StableProduction Index

45.8

64.3

36.7

41.7

63.6

46.4

-17.2 ↓

Contract

New Orders Index

37.5

57.1

50.0

50.0

70.8

46.9

-23.9 ↓

Contract

Export Orders Index

50.0

68.8

62.5

57.1

70.0

50.0

-20.0 ↓

StableExisting Orders Index

50.0

50.0

50.0

46.2

66.7

65.6

-1.1 ↓

ExpandInventory Index of Finished Products

45.8

32.1

42.9

38.5

41.7

34.4

-7.3 ↓

Contract

Purchase Quantity Index

33.3

53.8

42.3

45.8

63.6

42.3

-21.3 ↓

Contract

Purchase Price Index

45.8

50.0

42.9

61.5

54.2

53.6

-0.6 ↓

ExpandInventory Index of Main Raw Materials

45.8

46.4

46.4

26.9

41.7

36.7

-5.0 ↓

Contract

Employees Index

54.2

50.0

50.0

46.2

50.0

53.1

3.1 ↑

ExpandDelivery Time Index

50.0

46.4

39.3

38.5

54.2

56.3

2.1 ↑

Expand0
Feb-2024

Mar-2024

Apr-2024

May-2024

The Thai government recently announced the cancellation of the tax-free policy
for imported goods valued under 1,500 baht. Starting from July 5, 2024, all
low-value imports will be subject to a 7% value-added tax (VAT). The change aims
to reduce the competitiveness of cheap imported goods and create a faircompetition environment for local businesses. In the second quarter of this year,
the country’s price index for standard home construction rose by 3.8%, with thebiggest increases seen in the prices of wood and wooden products, as well aslabor wages, for example, prices for formwork wood, framework wood, flooringand doors increased by 6.8%, and the increase was mainly driven by operational
and transportation costs. News from Thai Rubber Wood Association said a newround of increases in rubber wood prices had begun. China is the main market for
rubber wood from Thailand, and according to data from Chinese customs, in thefirst five months of 2024, the volume of rubber wood exported from Thailand to
China increased by 27%, reaching 2.12 million cubic meters. The trade value alsorose by 32%, hitting over US$530 million.

Jun-2024

Jul-2024

month, indicating that the business prosperity of the superior timber enterprises
represented by the GTI-Thailand index shrank from last month. In Thailand thismonth, both the supply and demand sides of the Thai timber sector were in aslight decline, however, the volume of existing orders had further increased,
which in the short term, could support the stability in wood production.
Meanwhile, it’s worth noting the purchase prices of raw materials had been rising
for three consecutive months.
As for the eleven sub-indexes, the indexes for existing orders, purchase price,employees, and delivery time were all above the critical value of 50%, the indexes
for harvesting and export orders were at the critical value, while the indexes for
production, new orders, inventory of finished products, purchase quantity, andinventory of main raw materials were below the critical value. Compared to theprevious month, the indexes for employees and delivery time increased by 2.1-3.1
percentage points, and the remaining 9 indexes declined by 1.1-23.9 percentage
points.

In July, the GTI-Thailand index registered 48.4%, a decrease of 11.1 percentage
points from the previous month, fell below the critical value (50%) after one

08

Main Challenges Reported by
GTI-Thailand Enterprises

Main Suggestions from
GTI-Thailand Enterprises• Orders were not enough for enterprises.
• Some customers were overdue in payment.
• Timber certification documents were needed.
• Rains restricted the production and operations.
• There was a lack of quality employees.
• Production costs and expenses were increasing.
• Some enterprises were unable to produce products in time and were lack oftechnology• The types of woodworking products were becoming more complex, increasing
the difficulty in production.
• Raw materials for wood production were insufficient, and heavy rains madetransportation difficult.

• Request for support from the government.
• Internal problems must be solved first.
• Try to manage cash flow and negotiate with customers.
• The government certifies documents related to forests and wood products.
• Develop the skills and expertise of the workforce. Upgrade the machinery to
make it more modern.

09

GGSC-No. 07/2024

GTI-Gabon Report

GTI Report 2024

GTI-Gabon Index in July 2024

Table: Overview of GTI-Gabon Sub-Indexes (%)
2024.022024.032024.04

2024.052024.06

2024.07

MoM

Performance

Comprehensive Index

43.5

31.9

38.4

37.2

41.2

46.4

5.2 ↑

Contract

Harvesting Index

37.5

28.6

42.5

50.0

50.0

56.7

6.7 ↑

ExpandProduction Index

50.0

26.7

43.8

37.5

34.6

60.7

26.1 ↑

ExpandNew Orders Index

50.0

37.0

33.3

33.3

36.7

43.3

6.6 ↑

Contract

Export Orders Index

45.5

27.8

30.0

34.6

27.3

40.9

13.6 ↑

Contract

Existing Orders Index

42.3

30.4

33.3

36.7

33.3

43.3

10.0 ↑

Contract

20

Inventory Index of Finished Products

38.5

45.7

35.7

43.3

60.0

56.7

-3.3 ↓

Expand0

Purchase Quantity Index

33.3

39.3

42.9

43.8

50.0

50.0

0.0

StablePurchase Price Index

61.1

57.1

46.4

50.0

50.0

37.5

-12.5 ↓

Contract

Inventory Index of Main Raw Materials

38.9

33.3

46.4

50.0

55.0

45.8

-9.2 ↓

Contract

Employees Index

34.6

28.3

31.0

33.3

40.0

33.3

-6.7 ↓

Contract

Delivery Time Index

34.6

34.4

44.1

40.9

53.6

46.4

-7.2 ↓

Contract

Unit: %

GTI-Gabon Comprehensive Index
80
60

43.5
31.9

40

Feb-2024

Mar-2024

38.4

37.2

Apr-2024

May-2024

On July 10, Gabon’s Ministry of Economy and the Ministry of Oil jointly pledged to announce oil,mining, and forestry contracts in the coming weeks, aiming to enhance the transparency ofnatural resource management, strengthen citizens' confidence in institutions, and ensure fairconditions for negotiations with enterprises. The Gabonese government would impose clear
restrictions on the transportation time for logs: trucks carrying logs are allowed to travel from06:00 to 12:00, then they must stop for 2 hours before continuing to travel from 14:00 to 18:00.
To ensure the smooth implementation of the new regulations, the Gabonese government hadlaunched extensive work for publicity and mobilization. On July 13, the Gabonese Power
Company (GPC) officially launched the construction of the Mayumba IPP Gas-fired Thermal
Power Plant in the city of Mayumba. The project would improve the power supply in the southern
Gabon and promote investments in sectors such as mining, forestry, and ports.

41.2

Jun-2024

46.4

Jul-2024

shrank from last month, however, the contraction eased. This month, the supply side of theGabonese timber sector had seen some improvements, with the volume of harvesting and thevolume of production both increasing compared to the previous month. Although the volume oforders from domestic and international markets continued to decrease, the decline had slowed
down.
As for the eleven sub-indexes, three indexes (harvesting, production, and inventory of finishedproducts) were above the critical value of 50%, one index (purchase quantity) was at the criticalvalue, while the remaining seven indexes (new orders, export orders, existing orders, purchaseprice, inventory of main raw materials, employees, and delivery time) were all below the criticalvalue. Compared to the previous month, the indexes for harvesting, production, new orders,
export orders, and existing orders increased by 6.6-26.1 percentage points; the index forpurchase quantity was unchanged from the previous month; and the indexes for inventory offinished products, purchase price, inventory of main raw materials, employees, and delivery
time declined by 3.3-12.5 percentage points.

In July, the GTI-Gabon index registered 46.4%, an increase of 5.2 percentage points from theprevious month, was below the critical value (50%) for 12 consecutive months, indicating thatthe business prosperity of the superior timber enterprises represented by the GTI-Gabon index

Brief on Gabonese Timber Industry
In July 2024, the Ministry of Water and Forests of Gabon, through its Directorate General for Industries, Timber Trade, and Forest Products Development (DGICBVPF), launched an initiative to standardize
the inventory records for all processing units. The initiative aims to enable operators to trace timber products from forests to exports. This is also a big step for Gabon in implementing forest productcertification.

Main Challenges Reported by
GTI-Gabon Enterprises

Main Suggestions from
GTI-Gabon Enterprises• Orders for some enterprises decreased.
• Some enterprises faced financial pressure.
• Freight rates for export increased.
• The costs increased as a result of the tariffs.
• The approval for administrative documents was slow.
• Road and rail transportation was not smooth.
• Adjustment was needed for government policies regarding foreign
employees.
• Wood orders from the Asian and European markets decreased.

• Adjust export tariffs.
• Increase the number of trucks for transportation.
• Enhance communications with foreign customers.
• Hope the banks could provide support to enterprises.
• Lower production costs and/or sales prices.
• Increase staff and reduce purchase costs.
• Improve communications between administrative departments andoperators in the industry.
• Hope the railway operator SETRAG could provide more carriages tocertain forestry companies that have concessions, so as to help themavoid wood backlog.

Information provided by GTI-Gabon Focal Point

1011

GGSC-No. 07/2024

GTI-Gabon Report

GTI Report 2024

GTI-Gabon Index in July 2024

Table: Overview of GTI-Gabon Sub-Indexes (%)
2024.022024.032024.04

2024.052024.06

2024.07

MoM

Performance

Comprehensive Index

43.5

31.9

38.4

37.2

41.2

46.4

5.2 ↑

Contract

Harvesting Index

37.5

28.6

42.5

50.0

50.0

56.7

6.7 ↑

ExpandProduction Index

50.0

26.7

43.8

37.5

34.6

60.7

26.1 ↑

ExpandNew Orders Index

50.0

37.0

33.3

33.3

36.7

43.3

6.6 ↑

Contract

Export Orders Index

45.5

27.8

30.0

34.6

27.3

40.9

13.6 ↑

Contract

Existing Orders Index

42.3

30.4

33.3

36.7

33.3

43.3

10.0 ↑

Contract

20

Inventory Index of Finished Products

38.5

45.7

35.7

43.3

60.0

56.7

-3.3 ↓

Expand0

Purchase Quantity Index

33.3

39.3

42.9

43.8

50.0

50.0

0.0

StablePurchase Price Index

61.1

57.1

46.4

50.0

50.0

37.5

-12.5 ↓

Contract

Inventory Index of Main Raw Materials

38.9

33.3

46.4

50.0

55.0

45.8

-9.2 ↓

Contract

Employees Index

34.6

28.3

31.0

33.3

40.0

33.3

-6.7 ↓

Contract

Delivery Time Index

34.6

34.4

44.1

40.9

53.6

46.4

-7.2 ↓

Contract

Unit: %

GTI-Gabon Comprehensive Index
80
60

43.5
31.9

40

Feb-2024

Mar-2024

38.4

37.2

Apr-2024

May-2024

On July 10, Gabon’s Ministry of Economy and the Ministry of Oil jointly pledged to announce oil,mining, and forestry contracts in the coming weeks, aiming to enhance the transparency ofnatural resource management, strengthen citizens' confidence in institutions, and ensure fairconditions for negotiations with enterprises. The Gabonese government would impose clear
restrictions on the transportation time for logs: trucks carrying logs are allowed to travel from06:00 to 12:00, then they must stop for 2 hours before continuing to travel from 14:00 to 18:00.
To ensure the smooth implementation of the new regulations, the Gabonese government hadlaunched extensive work for publicity and mobilization. On July 13, the Gabonese Power
Company (GPC) officially launched the construction of the Mayumba IPP Gas-fired Thermal
Power Plant in the city of Mayumba. The project would improve the power supply in the southern
Gabon and promote investments in sectors such as mining, forestry, and ports.

41.2

Jun-2024

46.4

Jul-2024

shrank from last month, however, the contraction eased. This month, the supply side of theGabonese timber sector had seen some improvements, with the volume of harvesting and thevolume of production both increasing compared to the previous month. Although the volume oforders from domestic and international markets continued to decrease, the decline had slowed
down.
As for the eleven sub-indexes, three indexes (harvesting, production, and inventory of finishedproducts) were above the critical value of 50%, one index (purchase quantity) was at the criticalvalue, while the remaining seven indexes (new orders, export orders, existing orders, purchaseprice, inventory of main raw materials, employees, and delivery time) were all below the criticalvalue. Compared to the previous month, the indexes for harvesting, production, new orders,
export orders, and existing orders increased by 6.6-26.1 percentage points; the index forpurchase quantity was unchanged from the previous month; and the indexes for inventory offinished products, purchase price, inventory of main raw materials, employees, and delivery
time declined by 3.3-12.5 percentage points.

In July, the GTI-Gabon index registered 46.4%, an increase of 5.2 percentage points from theprevious month, was below the critical value (50%) for 12 consecutive months, indicating thatthe business prosperity of the superior timber enterprises represented by the GTI-Gabon index

Brief on Gabonese Timber Industry
In July 2024, the Ministry of Water and Forests of Gabon, through its Directorate General for Industries, Timber Trade, and Forest Products Development (DGICBVPF), launched an initiative to standardize
the inventory records for all processing units. The initiative aims to enable operators to trace timber products from forests to exports. This is also a big step for Gabon in implementing forest productcertification.

Main Challenges Reported by
GTI-Gabon Enterprises

Main Suggestions from
GTI-Gabon Enterprises• Orders for some enterprises decreased.
• Some enterprises faced financial pressure.
• Freight rates for export increased.
• The costs increased as a result of the tariffs.
• The approval for administrative documents was slow.
• Road and rail transportation was not smooth.
• Adjustment was needed for government policies regarding foreign
employees.
• Wood orders from the Asian and European markets decreased.

• Adjust export tariffs.
• Increase the number of trucks for transportation.
• Enhance communications with foreign customers.
• Hope the banks could provide support to enterprises.
• Lower production costs and/or sales prices.
• Increase staff and reduce purchase costs.
• Improve communications between administrative departments andoperators in the industry.
• Hope the railway operator SETRAG could provide more carriages tocertain forestry companies that have concessions, so as to help themavoid wood backlog.

Information provided by GTI-Gabon Focal Point

1011

GGSC-No. 07/2024

GTI-ROC Report

GTI Report 2024

GTI-ROC Index in July 2024

Table: Overview of GTI-ROC Sub-Indexes (%)

Unit: %

GTI-ROC Comprehensive Index
80
60

35.5

44.1

41.6

40.7

43.2

48.1

40
20

2024.022024.032024.04

2024.052024.06

2024.07

MoM

Performance

Comprehensive Index

35.5

44.1

41.6

40.7

43.2

48.1

4.9 ↑

Contract

Harvesting Index

39.5

40.4

40.0

40.6

50.0

45.7

-4.3 ↓

Contract

Production Index

42.1

44.6

41.7

39.3

50.0

50.0

0.0

StableNew Orders Index

32.0

33.9

42.0

34.1

47.6

50.0

2.4 ↑

StableExport Orders Index

44.7

50.0

47.7

43.3

50.0

45.8

-4.2 ↓

Contract

Existing Orders Index

34.0

33.9

40.0

38.6

47.6

44.0

-3.6 ↓

Contract

Inventory Index of Finished Products

40.0

33.9

42.0

40.9

45.2

50.0

4.8 ↑

StablePurchase Quantity Index

50.0

50.0

50.0

40.0

66.7

58.3

-8.4 ↓

ExpandPurchase Price Index

50.0

50.0

40.0

50.0

50.0

44.4

-5.6 ↓

Contract

Inventory Index of Main Raw Materials

40.0

50.0

50.0

40.0

25.0

50.0

25.0 ↑

StableEmployees Index

36.0

37.5

34.0

38.6

38.1

48.0

9.9 ↑

Contract

Delivery Time Index

28.0

41.7

21.9

42.3

50.0

47.6

-2.4 ↓

Contract0
Feb-2024

Mar-2024

Apr-2024

May-2024

Jun-2024

Jul-2024

In July, the GTI-ROC index registered 48.1%, an increase of 4.9 percentage points
from the previous month, was below the critical value (50%) for 21 consecutive
months, indicating that the business prosperity of the superior timber enterprises
represented by the GTI-ROC index shrank from last month, however, thecontraction eased.

The Central African Information Agency reported on July 2 that Cheick Fantamady
Kanté, the World Bank official in charge of affairs in the Republic of the Congo(ROC), recently had a meeting with Congolese Minister of Energy and Hydraulics,
Emile Ouosso. During the meeting, Cheick Fantamady Kanté said the World Bank
would provide a loan of US$100 million to ROC. The loan would be used for therenovation of the power transmission lines between the capital Brazzaville andthe key port Pointe-Noire, so as to address the long-standing power supply
problem affecting both citizens and businesses. From July 2 to 5, the first
International Conference on Afforestation and Reforestation (Ciar 1) was held in
Brazzaville, the capital of ROC. During the conference, the heads of somecountries and representatives of international organizations endorsed the"Brazzaville Declaration," which reached a consensus on the global strategy for
afforestation and reforestation. Key points in the draft of "Brazzaville
Declaration" include a new global strategy for increasing forest area, issues
related to land laws, protecting the rights of indigenous peoples, conducting
research in the field of forestry, providing funding for forest conservation, andestablishing an institution responsible for overseeing and implementing the
Declaration.

As for the eleven sub-indexes, one index (purchase quantity) was above thecritical value of 50%, four indexes (production, new orders, inventory of finishedproducts, and inventory of main raw materials) were at the critical value, while
the remaining six indexes (harvesting, export orders, existing orders, purchaseprice, employees, and delivery time) were all below the critical value. Comparedto the previous month, the indexes for new orders, inventory of finished products,
inventory of main raw materials, and employees increased by 2.4-25.0 percentage
points; the index for production was unchanged from the previous month; and theindexes for harvesting, export orders, existing orders, purchase quantity,purchase price, and delivery time declined by 2.4-8.4 percentage points.

12

Main Challenges Reported by
GTI-ROC Enterprises

Main Suggestions from
GTI-ROC Enterprises• The logistics was not smooth.

• Ensure fuel supply.

• Some enterprises faced cash flow problems.

• Adjust operations according to the weather.

• Rains had restricted production and operations.

• Improve transport conditions by repairing roads and bridges.

• Fuel supply was insufficient for the production.

• Improve working conditions for operators.

• The market prices for timber products fell, and business conditions
were poor.

13

GGSC-No. 07/2024

GTI-ROC Report

GTI Report 2024

GTI-ROC Index in July 2024

Table: Overview of GTI-ROC Sub-Indexes (%)

Unit: %

GTI-ROC Comprehensive Index
80
60

35.5

44.1

41.6

40.7

43.2

48.1

40
20

2024.022024.032024.04

2024.052024.06

2024.07

MoM

Performance

Comprehensive Index

35.5

44.1

41.6

40.7

43.2

48.1

4.9 ↑

Contract

Harvesting Index

39.5

40.4

40.0

40.6

50.0

45.7

-4.3 ↓

Contract

Production Index

42.1

44.6

41.7

39.3

50.0

50.0

0.0

StableNew Orders Index

32.0

33.9

42.0

34.1

47.6

50.0

2.4 ↑

StableExport Orders Index

44.7

50.0

47.7

43.3

50.0

45.8

-4.2 ↓

Contract

Existing Orders Index

34.0

33.9

40.0

38.6

47.6

44.0

-3.6 ↓

Contract

Inventory Index of Finished Products

40.0

33.9

42.0

40.9

45.2

50.0

4.8 ↑

StablePurchase Quantity Index

50.0

50.0

50.0

40.0

66.7

58.3

-8.4 ↓

ExpandPurchase Price Index

50.0

50.0

40.0

50.0

50.0

44.4

-5.6 ↓

Contract

Inventory Index of Main Raw Materials

40.0

50.0

50.0

40.0

25.0

50.0

25.0 ↑

StableEmployees Index

36.0

37.5

34.0

38.6

38.1

48.0

9.9 ↑

Contract

Delivery Time Index

28.0

41.7

21.9

42.3

50.0

47.6

-2.4 ↓

Contract0
Feb-2024

Mar-2024

Apr-2024

May-2024

Jun-2024

Jul-2024

In July, the GTI-ROC index registered 48.1%, an increase of 4.9 percentage points
from the previous month, was below the critical value (50%) for 21 consecutive
months, indicating that the business prosperity of the superior timber enterprises
represented by the GTI-ROC index shrank from last month, however, thecontraction eased.

The Central African Information Agency reported on July 2 that Cheick Fantamady
Kanté, the World Bank official in charge of affairs in the Republic of the Congo(ROC), recently had a meeting with Congolese Minister of Energy and Hydraulics,
Emile Ouosso. During the meeting, Cheick Fantamady Kanté said the World Bank
would provide a loan of US$100 million to ROC. The loan would be used for therenovation of the power transmission lines between the capital Brazzaville andthe key port Pointe-Noire, so as to address the long-standing power supply
problem affecting both citizens and businesses. From July 2 to 5, the first
International Conference on Afforestation and Reforestation (Ciar 1) was held in
Brazzaville, the capital of ROC. During the conference, the heads of somecountries and representatives of international organizations endorsed the"Brazzaville Declaration," which reached a consensus on the global strategy for
afforestation and reforestation. Key points in the draft of "Brazzaville
Declaration" include a new global strategy for increasing forest area, issues
related to land laws, protecting the rights of indigenous peoples, conducting
research in the field of forestry, providing funding for forest conservation, andestablishing an institution responsible for overseeing and implementing the
Declaration.

As for the eleven sub-indexes, one index (purchase quantity) was above thecritical value of 50%, four indexes (production, new orders, inventory of finishedproducts, and inventory of main raw materials) were at the critical value, while
the remaining six indexes (harvesting, export orders, existing orders, purchaseprice, employees, and delivery time) were all below the critical value. Comparedto the previous month, the indexes for new orders, inventory of finished products,
inventory of main raw materials, and employees increased by 2.4-25.0 percentage
points; the index for production was unchanged from the previous month; and theindexes for harvesting, export orders, existing orders, purchase quantity,purchase price, and delivery time declined by 2.4-8.4 percentage points.

12

Main Challenges Reported by
GTI-ROC Enterprises

Main Suggestions from
GTI-ROC Enterprises• The logistics was not smooth.

• Ensure fuel supply.

• Some enterprises faced cash flow problems.

• Adjust operations according to the weather.

• Rains had restricted production and operations.

• Improve transport conditions by repairing roads and bridges.

• Fuel supply was insufficient for the production.

• Improve working conditions for operators.

• The market prices for timber products fell, and business conditions
were poor.

13

GGSC-No. 07/2024

GTI-Ghana Report

GTI Report 2024

GTI-Ghana Index in July 2024

Table: Overview of GTI-Ghana Sub-Indexes (%)

Unit: %

GTI-Ghana Comprehensive Index
80

46.8

60
40
20
0
Feb-2024

Mar-2024

Apr-2024

May-2024

Jun-2024

Jul-2024

The eighth edition of the Economic Update for Ghana released by the World Bank

production of raw materials for the timber industry. Following the shortage of thesaid that despite challenges such as currency devaluation and inflation, Ghana

materials, the country may be forced to start spending millions of cedis on timber

had made steady progress toward restoring economic stability over the past year,

imports.

the financial and debt restructuring policies was effective, and the economy saw
modest recovery. According to a report by local media on July 18, the Ghana

In July, the GTI-Ghana index registered 46.8%, was below the critical value of

Revenue Authority (GRA) collected 68.49 billion cedis in taxes in the first half of50%, indicating that the business prosperity of the superior timber enterprises

the year, representing a year-on-year increase of 37.6% and exceeding the target

represented by the GTI-Ghana index shrank from the previous month. As for theby 0.2%. The annual tax target of 146 billion cedis is expected to be achieved. At

eleven sub-indexes, two indexes (purchase price, and delivery time) were above

the same time, Ghana had planned a tax-to-GDP ratio of 20% by 2027. The

the critical value of 50%, while nine indexes (harvesting, production, new orders,

newspaper Daily Guide reported on July 23 that after several rounds ofexport orders, existing orders, inventory of finished products, purchase quantity,

discussions, the Ghanaian government believes restoring the road toll systeminventory of main raw materials, and employees) were all below the critical value.

will help solve the problem of insufficient funds and improve the national road
network. Therefore, there are plans to re-implement the road toll system in 2025.

2024.07

Performance

Comprehensive Index

46.8

Contract

Harvesting Index

46.9

Contract

Production Index

42.1

Contract

New Orders Index

32.5

Contract

Export Orders Index

38.2

Contract

Existing Orders Index

35.0

Contract

Inventory Index of Finished Products

35.0

Contract

Purchase Quantity Index

36.8

Contract

Purchase Price Index

81.6

ExpandInventory Index of Main Raw Materials

39.5

Contract

Employees Index

42.5

Contract

Delivery Time Index

55.3

ExpandMain Challenges Reported by
GTI-Ghana Enterprises

Main Suggestions from
GTI-Ghana Enterprises• Contracts were not enough.
• Freights charging was high.
• Inflation was rising.
• Market sales was low.
• Acquisition of raw materials was difficult.
• There was a lack of more forest land to work within.
• There was a lack of adequate working capital.
• Rains increased the production costs.
• Problems such as dwindling forest resources and increasing log prices existed.
• It was difficult to access to logs and the costs for production and operations rose.
• Currency devaluation occurred, and there was a lack of market forlesser-known timber species.

• Lower freight charges.
• Focus on increasing market sales.
• Hope the government could provide financial subsidies to the enterprises.
• Access to a timber concession.
• Government regulations are needed to help make raw materials available.
• Hope the government could create or aggressively look for sustainable
markets for lesser known or used timber species.

The Ghana Timber Millers Organisation said frequent forest fires had led to low

1415

GGSC-No. 07/2024

GTI-Ghana Report

GTI Report 2024

GTI-Ghana Index in July 2024

Table: Overview of GTI-Ghana Sub-Indexes (%)

Unit: %

GTI-Ghana Comprehensive Index
80

46.8

60
40
20
0
Feb-2024

Mar-2024

Apr-2024

May-2024

Jun-2024

Jul-2024

The eighth edition of the Economic Update for Ghana released by the World Bank

production of raw materials for the timber industry. Following the shortage of thesaid that despite challenges such as currency devaluation and inflation, Ghana

materials, the country may be forced to start spending millions of cedis on timber

had made steady progress toward restoring economic stability over the past year,

imports.

the financial and debt restructuring policies was effective, and the economy saw
modest recovery. According to a report by local media on July 18, the Ghana

In July, the GTI-Ghana index registered 46.8%, was below the critical value of

Revenue Authority (GRA) collected 68.49 billion cedis in taxes in the first half of50%, indicating that the business prosperity of the superior timber enterprises

the year, representing a year-on-year increase of 37.6% and exceeding the target

represented by the GTI-Ghana index shrank from the previous month. As for theby 0.2%. The annual tax target of 146 billion cedis is expected to be achieved. At

eleven sub-indexes, two indexes (purchase price, and delivery time) were above

the same time, Ghana had planned a tax-to-GDP ratio of 20% by 2027. The

the critical value of 50%, while nine indexes (harvesting, production, new orders,

newspaper Daily Guide reported on July 23 that after several rounds ofexport orders, existing orders, inventory of finished products, purchase quantity,

discussions, the Ghanaian government believes restoring the road toll systeminventory of main raw materials, and employees) were all below the critical value.

will help solve the problem of insufficient funds and improve the national road
network. Therefore, there are plans to re-implement the road toll system in 2025.

2024.07

Performance

Comprehensive Index

46.8

Contract

Harvesting Index

46.9

Contract

Production Index

42.1

Contract

New Orders Index

32.5

Contract

Export Orders Index

38.2

Contract

Existing Orders Index

35.0

Contract

Inventory Index of Finished Products

35.0

Contract

Purchase Quantity Index

36.8

Contract

Purchase Price Index

81.6

ExpandInventory Index of Main Raw Materials

39.5

Contract

Employees Index

42.5

Contract

Delivery Time Index

55.3

ExpandMain Challenges Reported by
GTI-Ghana Enterprises

Main Suggestions from
GTI-Ghana Enterprises• Contracts were not enough.
• Freights charging was high.
• Inflation was rising.
• Market sales was low.
• Acquisition of raw materials was difficult.
• There was a lack of more forest land to work within.
• There was a lack of adequate working capital.
• Rains increased the production costs.
• Problems such as dwindling forest resources and increasing log prices existed.
• It was difficult to access to logs and the costs for production and operations rose.
• Currency devaluation occurred, and there was a lack of market forlesser-known timber species.

• Lower freight charges.
• Focus on increasing market sales.
• Hope the government could provide financial subsidies to the enterprises.
• Access to a timber concession.
• Government regulations are needed to help make raw materials available.
• Hope the government could create or aggressively look for sustainable
markets for lesser known or used timber species.

The Ghana Timber Millers Organisation said frequent forest fires had led to low

1415

GGSC-No. 07/2024

GTI-Brazil Report

GTI Report 2024

GTI-Brazil Index in July 2024

Table: Overview of GTI-Brazil Sub-Indexes (%)

Unit: %

GTI-Brazil Comprehensive Index

54.4
60.0

49.3

46.5

39.6

39.2

37.9

40.0
20.0
0.0
Feb-2024

Mar-2024

Apr-2024

May-2024

Jun-2024

As for the eleven sub-indexes, all the indexes were below the critical value of 50%. Comparedto the previous month, seven indexes (harvesting, new orders, existing orders, inventory offinished products, purchase quantity, purchase price, and inventory of main raw materials)
increased by 1.7-10.2 percentage points, while four indexes (production, export orders,
employees, and delivery time) declined by 10.0-18.2 percentage points.

Brief on Brazilian Timber Industry• The market for wooden doors in Brazil has shown price and demand stability in recent
months. Nevertheless, some companies have reported that demand has recently beenfalling due to an increase in market supply.

• The market for Pine and Eucalyptus logs remains with steady demand and prices.
However, there is significant pressure on the market to reduce prices, especially in thedomestic market. The Eucalyptus log market varies by season, with higher supply in thesummer compared to winter. Despite the fluctuation in supply, demand remains high,keeping prices stable.

• The export market for Brazilian forest products is facing serious challenges due to thecontinued strike by IBAMA (Brazilian Institute for the Environment and Renewable
Natural Resources) employees, which has now lasted more than 35 days. This strike has
caused significant delays in fulfilling international contracts, negatively impacting thesector's reputation in foreign markets due to the inability to export their products which
need clearance by IBAMA.

• The demand for sawnwood is weak, possibly due to decreased activity in the civil
construction sector, which was affected by heavy rains. On the other hand, the demand forplywood has shown signs of recovery. The market for eucalyptus poles and posts showed aslight increase in demand, with good prospects for growth until the end of the year.

2024.032024.04

2024.052024.06

2024.07

MoM

Performance

Comprehensive Index

39.6

54.4

49.3

37.9

46.5

39.2

-7.3 ↓

Contract

Harvesting Index

33.3

56.3

42.3

36.4

36.4

43.8

7.4 ↑

Contract

Production Index

46.2

50.0

53.3

38.5

57.1

38.9

-18.2 ↓

Contract

New Orders Index

42.9

72.7

52.9

28.6

43.3

45.0

1.7 ↑

Contract

Export Orders Index

54.2

70.0

70.0

50.0

50.0

33.3

-16.7 ↓

Contract

Existing Orders Index

25.0

50.0

20.6

25.0

30.0

35.0

5.0 ↑

Contract

Inventory Index of Finished Products

32.1

31.8

38.2

25.0

36.7

40.0

3.3 ↑

Contract

Purchase Quantity Index

25.0

71.4

30.0

27.3

26.9

31.3

4.4 ↑

Contract

Purchase Price Index

38.5

50.0

40.0

40.9

38.5

43.8

5.3 ↑

Contract

Inventory Index of Main Raw Materials

25.0

27.8

23.3

20.8

23.1

33.3

10.2 ↑

Contract

Employees Index

57.1

54.5

58.8

53.6

50.0

40.0

-10.0 ↓

Contract

Delivery Time Index

50.0

42.9

40.0

45.8

46.2

31.3

-14.9 ↓

Contract

Jul-2024

In July, the GTI-Brazil index registered 39.2%, a decrease of 7.3 percentage points from theprevious month, was below the critical value (50%) for 4 consecutive months, indicating thatthe business prosperity of the superior timber enterprises represented by the GTI-Brazil index
shrank from last month. This month, under the influence of limited market demand, thevolumes of timber harvesting and production both declined, and the number of orders also
decreased following an increase last month.

The latest Macro-Fiscal Bulletin released by Brazilian Ministry of Finance had raised thecountry’s inflation forecast for 2024 from 3.7% to 3.9%, and the main reasons for the rise
included the further devaluation of the real against the US dollar, the increase in the prices ofgasoline and natural gas, and the floods in Rio Grande do Sul. Considering the pause in interest
rate cuts by the Brazilian central bank, the GDP growth forecast for 2025 had been revised downfrom 2.8% to 2.6%. In June, Brazilian exports of wood-based products (except pulp and paper)increased 7.4% to US$313.1 million. However, looking at the categories of products, exports oftropical sawnwood and wood furniture both declined. Recently, Brazil’s Forest Service
announced a plan to dramatically expand selective logging to an area equivalent to the size of
Costa Rica over the next two years. For conservation of forests, the plan brings a massive areaof Amazon rainforest currently vulnerable to illegal deforestation under national governance.
Companies that get timber concessions have to follow strict rules. They can log up to six trees
per hectare (2.5 acres) over a 30-year period, and older, seed-producing trees are off limits.

2024.02

Main Challenges Reported by
GTI-Brazil Enterprises

Main Suggestions from
GTI-Brazil Enterprises• There was a shortage of labor.

• Hope the government could open negotiation channel with strike movement.

• Recent strike resulted in delays in port logistics.

• Search for alternatives with clients to minimize logistics costs.

• Shipping/freight costs increased in Europe and America, while the productprices fell.

• Lower shipping/freight costs and expect a price reaction of products.
• The company could opt for shipments on break bulk vessels to reduce dependence
on containers and overcrowded terminals.

• There was a lack of market recognition of new hardwood species such as Australiancedar (Toona Ciliata) and African mahogany (Khaya Grandifoliola).

• Increase market recognition of new hardwood species like Australian cedar (Toona
Ciliata) and African mahogany (Khaya Grandifoliola).

Information provided by GTI-Brazil Focal Point

16

17

GGSC-No. 07/2024

GTI-Brazil Report

GTI Report 2024

GTI-Brazil Index in July 2024

Table: Overview of GTI-Brazil Sub-Indexes (%)

Unit: %

GTI-Brazil Comprehensive Index

54.4
60.0

49.3

46.5

39.6

39.2

37.9

40.0
20.0
0.0
Feb-2024

Mar-2024

Apr-2024

May-2024

Jun-2024

As for the eleven sub-indexes, all the indexes were below the critical value of 50%. Comparedto the previous month, seven indexes (harvesting, new orders, existing orders, inventory offinished products, purchase quantity, purchase price, and inventory of main raw materials)
increased by 1.7-10.2 percentage points, while four indexes (production, export orders,
employees, and delivery time) declined by 10.0-18.2 percentage points.

Brief on Brazilian Timber Industry• The market for wooden doors in Brazil has shown price and demand stability in recent
months. Nevertheless, some companies have reported that demand has recently beenfalling due to an increase in market supply.

• The market for Pine and Eucalyptus logs remains with steady demand and prices.
However, there is significant pressure on the market to reduce prices, especially in thedomestic market. The Eucalyptus log market varies by season, with higher supply in thesummer compared to winter. Despite the fluctuation in supply, demand remains high,keeping prices stable.

• The export market for Brazilian forest products is facing serious challenges due to thecontinued strike by IBAMA (Brazilian Institute for the Environment and Renewable
Natural Resources) employees, which has now lasted more than 35 days. This strike has
caused significant delays in fulfilling international contracts, negatively impacting thesector's reputation in foreign markets due to the inability to export their products which
need clearance by IBAMA.

• The demand for sawnwood is weak, possibly due to decreased activity in the civil
construction sector, which was affected by heavy rains. On the other hand, the demand forplywood has shown signs of recovery. The market for eucalyptus poles and posts showed aslight increase in demand, with good prospects for growth until the end of the year.

2024.032024.04

2024.052024.06

2024.07

MoM

Performance

Comprehensive Index

39.6

54.4

49.3

37.9

46.5

39.2

-7.3 ↓

Contract

Harvesting Index

33.3

56.3

42.3

36.4

36.4

43.8

7.4 ↑

Contract

Production Index

46.2

50.0

53.3

38.5

57.1

38.9

-18.2 ↓

Contract

New Orders Index

42.9

72.7

52.9

28.6

43.3

45.0

1.7 ↑

Contract

Export Orders Index

54.2

70.0

70.0

50.0

50.0

33.3

-16.7 ↓

Contract

Existing Orders Index

25.0

50.0

20.6

25.0

30.0

35.0

5.0 ↑

Contract

Inventory Index of Finished Products

32.1

31.8

38.2

25.0

36.7

40.0

3.3 ↑

Contract

Purchase Quantity Index

25.0

71.4

30.0

27.3

26.9

31.3

4.4 ↑

Contract

Purchase Price Index

38.5

50.0

40.0

40.9

38.5

43.8

5.3 ↑

Contract

Inventory Index of Main Raw Materials

25.0

27.8

23.3

20.8

23.1

33.3

10.2 ↑

Contract

Employees Index

57.1

54.5

58.8

53.6

50.0

40.0

-10.0 ↓

Contract

Delivery Time Index

50.0

42.9

40.0

45.8

46.2

31.3

-14.9 ↓

Contract

Jul-2024

In July, the GTI-Brazil index registered 39.2%, a decrease of 7.3 percentage points from theprevious month, was below the critical value (50%) for 4 consecutive months, indicating thatthe business prosperity of the superior timber enterprises represented by the GTI-Brazil index
shrank from last month. This month, under the influence of limited market demand, thevolumes of timber harvesting and production both declined, and the number of orders also
decreased following an increase last month.

The latest Macro-Fiscal Bulletin released by Brazilian Ministry of Finance had raised thecountry’s inflation forecast for 2024 from 3.7% to 3.9%, and the main reasons for the rise
included the further devaluation of the real against the US dollar, the increase in the prices ofgasoline and natural gas, and the floods in Rio Grande do Sul. Considering the pause in interest
rate cuts by the Brazilian central bank, the GDP growth forecast for 2025 had been revised downfrom 2.8% to 2.6%. In June, Brazilian exports of wood-based products (except pulp and paper)increased 7.4% to US$313.1 million. However, looking at the categories of products, exports oftropical sawnwood and wood furniture both declined. Recently, Brazil’s Forest Service
announced a plan to dramatically expand selective logging to an area equivalent to the size of
Costa Rica over the next two years. For conservation of forests, the plan brings a massive areaof Amazon rainforest currently vulnerable to illegal deforestation under national governance.
Companies that get timber concessions have to follow strict rules. They can log up to six trees
per hectare (2.5 acres) over a 30-year period, and older, seed-producing trees are off limits.

2024.02

Main Challenges Reported by
GTI-Brazil Enterprises

Main Suggestions from
GTI-Brazil Enterprises• There was a shortage of labor.

• Hope the government could open negotiation channel with strike movement.

• Recent strike resulted in delays in port logistics.

• Search for alternatives with clients to minimize logistics costs.

• Shipping/freight costs increased in Europe and America, while the productprices fell.

• Lower shipping/freight costs and expect a price reaction of products.
• The company could opt for shipments on break bulk vessels to reduce dependence
on containers and overcrowded terminals.

• There was a lack of market recognition of new hardwood species such as Australiancedar (Toona Ciliata) and African mahogany (Khaya Grandifoliola).

• Increase market recognition of new hardwood species like Australian cedar (Toona
Ciliata) and African mahogany (Khaya Grandifoliola).

Information provided by GTI-Brazil Focal Point

16

17

GGSC-No. 07/2024

GTI-Mexico Report

GTI Report 2024

GTI-Mexico Index in July 2024

Table: Overview of GTI-Mexico Sub-Indexes (%)

Unit: %

GTI-Mexico Comprehensive Index
80
60

35.2

40.3

42.5

42.0

47.2
37.0

40
20
0
Feb-2024

Mar-2024

Apr-2024

May-2024

Data from the National Institute of Statistics and Geography (INEGI) showed that
Mexico's annual inflation rate accelerated for the fourth month to 4.98% in June
2024, up from 4.69% in May and above market forecasts of 4.84%. News said that
due to rising labor costs and the inflation, the operating costs of timbercompanies in the state of Queretaro had increased by 20% over the past year,
which had led to a lack of competitiveness for local wood prices when comparedto that of the imported wood. Currently, Mexico has become the world's
fifth-largest furniture exporter, with an annual export value of US$128.99 billion.
A major reason behind the rapid growth is the influx of a large number of Chinese
factories into Mexico. From 2023 to 2024, around 60 Chinese furniture companies
are expected to enter Mexico, helping Mexico become the largest furnitureexporter in Latin America. The Association of Furniture Manufacturers of Jalisco(Afamjal) said that driven by house renovation, rapid urbanization, thepopularization of smart devices, and online shopping, the Latin American
furniture market is expected to grow at a compound annual growth rate (CAGR) of
5.5% from 2023 to 2028.

Jun-2024

Jul-2024

In July, the GTI-Mexico index registered 37.0%, a decrease of 10.2 percentage
points from the previous month, was below the critical value (50%) for 21
consecutive months, indicating that the business prosperity of the superiortimber enterprises represented by the GTI-Mexico index shrank from last month,and the contraction had expanded. Due to the humidity of the rains, someenterprises saw fungal problems in the wood, and the overall timber harvesting
and market sales were in a state of contraction.
As for the 11 sub-indexes, only the purchase price index was above the criticalvalue of 50%, while the remaining 10 indexes were all below the critical value.
Compared to the previous month, the indexes for export orders, purchase price,
and delivery time increased by 2.9-10.0 percentage points, and the indexes for
harvesting, production, new orders, existing orders, inventory of finishedproducts, purchase quantity, inventory of main raw materials, and employees
declined by 0.8-16.9 percentage point(s).

182024.022024.032024.04

2024.052024.06

2024.07

MoM

Performance

Comprehensive Index

35.2

40.3

42.0

42.5

47.2

37.0

-10.2 ↓

Contract

Harvesting Index

33.3

42.6

40.7

44.2

43.2

33.3

-9.9 ↓

Contract

Production Index

36.4

40.0

36.4

38.6

44.1

35.7

-8.4 ↓

Contract

New Orders Index

31.5

33.3

44.4

38.5

52.3

35.4

-16.9 ↓

Contract

Export Orders Index

10.0

25.0

20.0

33.3

30.0

40.0

10.0 ↑

Contract

Existing Orders Index

29.6

37.0

33.3

38.5

43.2

37.5

-5.7 ↓

Contract

Inventory Index of Finished Products

37.0

46.3

42.6

44.2

50.0

45.8

-4.2 ↓

Contract

Purchase Quantity Index

37.5

42.9

41.7

36.1

43.3

40.0

-3.3 ↓

Contract

Purchase Price Index

50.0

47.7

55.3

50.0

50.0

56.7

6.7 ↑

ExpandInventory Index of Main Raw Materials

34.2

50.0

42.5

44.4

43.3

42.5

-0.8 ↓

Contract

Employees Index

31.5

44.4

38.9

48.1

50.0

33.3

-16.7 ↓

Contract

Delivery Time Index

46.2

42.6

50.0

48.1

40.9

43.8

2.9 ↑

Contract

Main Challenges Reported by
GTI-Mexico Enterprises

Main Suggestions from
GTI-Mexico Enterprises• Roundwood supply was insufficient.
• The sales decreased.
• Some sawmills were shut down.
• There was a lack of market for forest products.
• The entry of imported products was unregulated.
• Because it was the rainy season, the supply of raw materials had decreased.
• The rainy season slowed down the timber harvesting process a bit.
• The response from the environmental department was slow.
• There were fungal problems in the wood due to the humidity of the rains.
• There was unfair competition with timber imports.
• Some enterprises did not have good access to roads, loading and transport equipment.
• For some enterprises, there were no wood extractions because the diameters of thetrees were smaller than the commercial diameters.
• The Federal Electricity Commission had not yet solved the problem of constantfailure of electrical power.

• Request government support.
• Seek credits for equipment and machinery.
• Support local commerce in the country.
• Support investments in forest roads and machinery.
• Improve the use of wood in the sawmill.
• Buy roundwood from other properties.
• Keep up with the pace of work with the market situation.
• Reactivate the construction industry and support the furniture sector.
• Establish import controls and impose tariffs on imports.
• Wait for this rainy season to pass and increase harvest capacity in the dry season.
• Train the staff of the Ministry of the Environment in the resolution of Procedures.
• Hope the Federal Electricity Commission could establish a substation near the
ejido and maintain the electrical network that is in terrible condition.
• Access the cutting areas by alternate roads, or the most accessible areas andleave the others for the period after the rainy season.

19

GGSC-No. 07/2024

GTI-Mexico Report

GTI Report 2024

GTI-Mexico Index in July 2024

Table: Overview of GTI-Mexico Sub-Indexes (%)

Unit: %

GTI-Mexico Comprehensive Index
80
60

35.2

40.3

42.5

42.0

47.2
37.0

40
20
0
Feb-2024

Mar-2024

Apr-2024

May-2024

Data from the National Institute of Statistics and Geography (INEGI) showed that
Mexico's annual inflation rate accelerated for the fourth month to 4.98% in June
2024, up from 4.69% in May and above market forecasts of 4.84%. News said that
due to rising labor costs and the inflation, the operating costs of timbercompanies in the state of Queretaro had increased by 20% over the past year,
which had led to a lack of competitiveness for local wood prices when comparedto that of the imported wood. Currently, Mexico has become the world's
fifth-largest furniture exporter, with an annual export value of US$128.99 billion.
A major reason behind the rapid growth is the influx of a large number of Chinese
factories into Mexico. From 2023 to 2024, around 60 Chinese furniture companies
are expected to enter Mexico, helping Mexico become the largest furnitureexporter in Latin America. The Association of Furniture Manufacturers of Jalisco(Afamjal) said that driven by house renovation, rapid urbanization, thepopularization of smart devices, and online shopping, the Latin American
furniture market is expected to grow at a compound annual growth rate (CAGR) of
5.5% from 2023 to 2028.

Jun-2024

Jul-2024

In July, the GTI-Mexico index registered 37.0%, a decrease of 10.2 percentage
points from the previous month, was below the critical value (50%) for 21
consecutive months, indicating that the business prosperity of the superiortimber enterprises represented by the GTI-Mexico index shrank from last month,and the contraction had expanded. Due to the humidity of the rains, someenterprises saw fungal problems in the wood, and the overall timber harvesting
and market sales were in a state of contraction.
As for the 11 sub-indexes, only the purchase price index was above the criticalvalue of 50%, while the remaining 10 indexes were all below the critical value.
Compared to the previous month, the indexes for export orders, purchase price,
and delivery time increased by 2.9-10.0 percentage points, and the indexes for
harvesting, production, new orders, existing orders, inventory of finishedproducts, purchase quantity, inventory of main raw materials, and employees
declined by 0.8-16.9 percentage point(s).

182024.022024.032024.04

2024.052024.06

2024.07

MoM

Performance

Comprehensive Index

35.2

40.3

42.0

42.5

47.2

37.0

-10.2 ↓

Contract

Harvesting Index

33.3

42.6

40.7

44.2

43.2

33.3

-9.9 ↓

Contract

Production Index

36.4

40.0

36.4

38.6

44.1

35.7

-8.4 ↓

Contract

New Orders Index

31.5

33.3

44.4

38.5

52.3

35.4

-16.9 ↓

Contract

Export Orders Index

10.0

25.0

20.0

33.3

30.0

40.0

10.0 ↑

Contract

Existing Orders Index

29.6

37.0

33.3

38.5

43.2

37.5

-5.7 ↓

Contract

Inventory Index of Finished Products

37.0

46.3

42.6

44.2

50.0

45.8

-4.2 ↓

Contract

Purchase Quantity Index

37.5

42.9

41.7

36.1

43.3

40.0

-3.3 ↓

Contract

Purchase Price Index

50.0

47.7

55.3

50.0

50.0

56.7

6.7 ↑

ExpandInventory Index of Main Raw Materials

34.2

50.0

42.5

44.4

43.3

42.5

-0.8 ↓

Contract

Employees Index

31.5

44.4

38.9

48.1

50.0

33.3

-16.7 ↓

Contract

Delivery Time Index

46.2

42.6

50.0

48.1

40.9

43.8

2.9 ↑

Contract

Main Challenges Reported by
GTI-Mexico Enterprises

Main Suggestions from
GTI-Mexico Enterprises• Roundwood supply was insufficient.
• The sales decreased.
• Some sawmills were shut down.
• There was a lack of market for forest products.
• The entry of imported products was unregulated.
• Because it was the rainy season, the supply of raw materials had decreased.
• The rainy season slowed down the timber harvesting process a bit.
• The response from the environmental department was slow.
• There were fungal problems in the wood due to the humidity of the rains.
• There was unfair competition with timber imports.
• Some enterprises did not have good access to roads, loading and transport equipment.
• For some enterprises, there were no wood extractions because the diameters of thetrees were smaller than the commercial diameters.
• The Federal Electricity Commission had not yet solved the problem of constantfailure of electrical power.

• Request government support.
• Seek credits for equipment and machinery.
• Support local commerce in the country.
• Support investments in forest roads and machinery.
• Improve the use of wood in the sawmill.
• Buy roundwood from other properties.
• Keep up with the pace of work with the market situation.
• Reactivate the construction industry and support the furniture sector.
• Establish import controls and impose tariffs on imports.
• Wait for this rainy season to pass and increase harvest capacity in the dry season.
• Train the staff of the Ministry of the Environment in the resolution of Procedures.
• Hope the Federal Electricity Commission could establish a substation near the
ejido and maintain the electrical network that is in terrible condition.
• Access the cutting areas by alternate roads, or the most accessible areas andleave the others for the period after the rainy season.

19

GGSC-No. 07/2024

GTI-China Report

GTI Report 2024

GTI-China Index in July 2024

Table: Overview of GTI-China Sub-Indexes (%)

Unit: %

GTI-China Comprehensive Index

66.8

80

52.3

60
40

42.2

46.7

43.5

31.7

20
0
Feb-2024

Mar-2024

Apr-2024

May-2024

Jun-20242024.022024.032024.04

2024.052024.06

2024.07

MoM

Performance

Comprehensive Index

31.7

66.8

52.3

42.2

46.7

43.5

-3.2 ↓

Contract

Production Index

16.7

78.7

56.5

40.2

48.2

40.7

-7.5 ↓

Contract

New Orders Index

20.9

76.5

51.9

35.4

44.6

38.6

-6.0 ↓

Contract

Export Orders Index

39.3

56.9

48.3

39.7

50.0

45.8

-4.2 ↓

Contract

Existing Orders Index

37.2

69.1

49.4

39.0

39.8

42.1

2.3 ↑

Contract

Inventory Index of Finished Products

41.9

60.3

51.9

53.7

54.8

55.0

0.2 ↑

ExpandPurchase Quantity Index

34.9

72.8

54.5

35.4

43.4

43.6

0.2 ↑

Contract

Purchase Price Index

58.1

55.9

58.3

48.8

49.4

41.4

-8.0 ↓

Contract

Import Index

40.5

60.3

56.8

45.2

47.0

50.0

3.0 ↑

StableInventory Index of Main Raw Materials

48.8

42.6

42.9

51.2

45.2

45.7

0.5 ↑

Contract

Employees Index

45.3

59.6

51.3

46.3

45.8

45.7

-0.1 ↓

Contract

Delivery Time Index

48.8

53.7

53.9

47.6

50.6

53.6

3.0 ↑

ExpandJul-2024

On July 21, China, South Africa, Brazil, and India jointly held the 2024 BASIC Ministerial

and new shipping capacity joining at a faster pace, the shipping rates of several routes

Meeting on Climate Change in Hubei Province, China. The BASIC Ministerial Joint

departing from China began to show a declining trend in July.

Statement on Climate Change released at the meeting called developed countries to end
trade distorting subsidies, including for the agricultural, forest and energy sectors, which

In July, the GTI-China index registered 43.5%, a decrease of 3.2 percentage points fromadversely impact on the sustainable development of developing countries. On July 24,

the previous month, was below the critical value (50%) for 3 consecutive months,

China’s National Development and Reform Commission and the Ministry of Finance issued

indicating that the business prosperity of the superior timber enterprises represented bya notice on "Several Measures to Strengthen Support for Large-scale Equipment Renewals

the GTI-China index shrank from the previous month. In summer which is the traditional

and the Trade-ins of Consumer Goods”. The Notice stated that regions should focus on

off-season for the Chinese timber market, the enterprises were concerned about issues

supporting the purchase of items and materials for renovation of old houses, the partial

such as blue stain and cracking in the wood, leading to a reduction in production activities.

upgrade and renovation for areas such as kitchens and bathrooms, and the improvements

Typically, the production cycle for the second half of the year begins in September.

for senior-friendly home environments, which may drive the consumption of furniture. In

Main Challenges Reported by
GTI-China Enterprises

Main Suggestions from
GTI-China Enterprises

the first half of 2024, China's cumulative exports of furniture and its parts reached

As for the 11 sub-indexes, two indexes (inventory of finished products, and delivery time)

US$35.379 billion, representing a year-on-year increase of 14.8%, according to China's

were above the critical value of 50%, one index (import) was at the critical value, and the• The volume of orders declined.

• Broaden financing channels.

customs statistics. During the same period, affected by the previous high inventory and theremaining 8 indexes were all below the critical value. Compared to the previous month, the• The recovery of funds was slow.

• Control production to avoid overcapacity.

still unclear market demand, China's total import volume of wood was 32.77 million cubic

indexes for existing orders, inventory of finished products, purchase quantity, import,• The timber market was a bit sluggish, and the customers decreased.

• Increase the proportion of exports and shift from the domestic market

meters, representing a year-on-year decrease of 5.32%. However, China's demand forinventory of main raw materials, and delivery time increased by 0.2-3.0 percentage point(s),tropical sawnwood had increased significantly. For example, from January to May 2024,

while the indexes for production, new orders, export orders, purchase price, and employees

China's import volume of Sapelli sawnwood surged to 45,000 cubic meters, achieving a 1.5

declined by 0.1-8.0 percentage point(s).

to the Southeast Asian market.

times increase compared to the same period last year. In terms of freight, with new routes

20

21

GGSC-No. 07/2024

GTI-China Report

GTI Report 2024

GTI-China Index in July 2024

Table: Overview of GTI-China Sub-Indexes (%)

Unit: %

GTI-China Comprehensive Index

66.8

80

52.3

60
40

42.2

46.7

43.5

31.7

20
0
Feb-2024

Mar-2024

Apr-2024

May-2024

Jun-20242024.022024.032024.04

2024.052024.06

2024.07

MoM

Performance

Comprehensive Index

31.7

66.8

52.3

42.2

46.7

43.5

-3.2 ↓

Contract

Production Index

16.7

78.7

56.5

40.2

48.2

40.7

-7.5 ↓

Contract

New Orders Index

20.9

76.5

51.9

35.4

44.6

38.6

-6.0 ↓

Contract

Export Orders Index

39.3

56.9

48.3

39.7

50.0

45.8

-4.2 ↓

Contract

Existing Orders Index

37.2

69.1

49.4

39.0

39.8

42.1

2.3 ↑

Contract

Inventory Index of Finished Products

41.9

60.3

51.9

53.7

54.8

55.0

0.2 ↑

ExpandPurchase Quantity Index

34.9

72.8

54.5

35.4

43.4

43.6

0.2 ↑

Contract

Purchase Price Index

58.1

55.9

58.3

48.8

49.4

41.4

-8.0 ↓

Contract

Import Index

40.5

60.3

56.8

45.2

47.0

50.0

3.0 ↑

StableInventory Index of Main Raw Materials

48.8

42.6

42.9

51.2

45.2

45.7

0.5 ↑

Contract

Employees Index

45.3

59.6

51.3

46.3

45.8

45.7

-0.1 ↓

Contract

Delivery Time Index

48.8

53.7

53.9

47.6

50.6

53.6

3.0 ↑

ExpandJul-2024

On July 21, China, South Africa, Brazil, and India jointly held the 2024 BASIC Ministerial

and new shipping capacity joining at a faster pace, the shipping rates of several routes

Meeting on Climate Change in Hubei Province, China. The BASIC Ministerial Joint

departing from China began to show a declining trend in July.

Statement on Climate Change released at the meeting called developed countries to end
trade distorting subsidies, including for the agricultural, forest and energy sectors, which

In July, the GTI-China index registered 43.5%, a decrease of 3.2 percentage points fromadversely impact on the sustainable development of developing countries. On July 24,

the previous month, was below the critical value (50%) for 3 consecutive months,

China’s National Development and Reform Commission and the Ministry of Finance issued

indicating that the business prosperity of the superior timber enterprises represented bya notice on "Several Measures to Strengthen Support for Large-scale Equipment Renewals

the GTI-China index shrank from the previous month. In summer which is the traditional

and the Trade-ins of Consumer Goods”. The Notice stated that regions should focus on

off-season for the Chinese timber market, the enterprises were concerned about issues

supporting the purchase of items and materials for renovation of old houses, the partial

such as blue stain and cracking in the wood, leading to a reduction in production activities.

upgrade and renovation for areas such as kitchens and bathrooms, and the improvements

Typically, the production cycle for the second half of the year begins in September.

for senior-friendly home environments, which may drive the consumption of furniture. In

Main Challenges Reported by
GTI-China Enterprises

Main Suggestions from
GTI-China Enterprises

the first half of 2024, China's cumulative exports of furniture and its parts reached

As for the 11 sub-indexes, two indexes (inventory of finished products, and delivery time)

US$35.379 billion, representing a year-on-year increase of 14.8%, according to China's

were above the critical value of 50%, one index (import) was at the critical value, and the• The volume of orders declined.

• Broaden financing channels.

customs statistics. During the same period, affected by the previous high inventory and theremaining 8 indexes were all below the critical value. Compared to the previous month, the• The recovery of funds was slow.

• Control production to avoid overcapacity.

still unclear market demand, China's total import volume of wood was 32.77 million cubic

indexes for existing orders, inventory of finished products, purchase quantity, import,• The timber market was a bit sluggish, and the customers decreased.

• Increase the proportion of exports and shift from the domestic market

meters, representing a year-on-year decrease of 5.32%. However, China's demand forinventory of main raw materials, and delivery time increased by 0.2-3.0 percentage point(s),tropical sawnwood had increased significantly. For example, from January to May 2024,

while the indexes for production, new orders, export orders, purchase price, and employees

China's import volume of Sapelli sawnwood surged to 45,000 cubic meters, achieving a 1.5

declined by 0.1-8.0 percentage point(s).

to the Southeast Asian market.

times increase compared to the same period last year. In terms of freight, with new routes

20

21

GGSC-No. 07/2024

About This Report

GTI Report 2024

Survey Methodology

Data and InterpretationὯ䈊㖞Ხ⋈䴆偹ᶢⲛ挅Ḩ妵

'>K>'[E_kXX>,/E_/E/f/f/{With the support of the International Tropical Timber Organization (ITTO), the

GTI index contains diffusion index and comprehensive index.

Global Timber Index (GTI) platform has set up focal points in pilot countries ofboth timber producing and timber consuming countries. At present, focal points(1) The calculation of GTI diffusion index. GTI has 11 diffusion indexes (or called

have been established in 9 countries, including Indonesia, Malaysia, Thailand,

sub-indices) based on the data from 11 objective questions which covers

Gabon, Republic of the Congo, Ghana, Brazil, Mexico and China.

production (or harvesting), new orders, new export orders, existing orders,

About ITTO

About GGSC

index is calculated by adding the percentage of enterprises with positive answers

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

Global Green Supply Chains Initiative (GGSC) is part of the Legal andto half of the percentage with unchanged answers.

intergovernmental

sustainable

Sustainable Supply Chains (LSSC) Programme, which was approved atinventory of products, purchasing quantity, import, purchasing prices of main raw
At the end of each month, focal points of the pilot countries organize the leadingmaterials, inventory of raw material, employees, and delivery time. The diffusion

enterprises to fill out the GTI questionnaire, and then the Global Green Supply
Chains Initiative (GGSC) Secretariat organizes experts to summarize and analyze
the data, and write the report.

organization

promotingthemanagement and conservation of tropical forests and the expansion

the 53rd session of the International Tropical Timber Council for being(2) The calculation of GTI comprehensive index. GTI comprehensive index (GTI

and diversification of international trade in tropical timber from

included into the Biennial Work Programme (BWP) of International

index for short) is calculated based on the diffusion indexes of five of the indexes

sustainably managed and legally harvested forests. It located in

Tropical Timber Organization (ITTO). Launched in 2018 by leadingwith different weights: production (harvesting), new orders, inventory of raw

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

Chinese enterprises in forest products industry, GGSC became an

consuming countries. For the timber producing countries, the questionnairematerial, employees, delivery time. The five diffusion indexes and their weights

ITTO’s membership represents about 90% of the global tropical timberinternational initiative in 2019. Since then, GGSC has been acting as afocuses on the developments of local timber harvesting and supplying, covering

are determined according to their leading influence on the industrial economy.

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

global platform for serving the sustainable development of the forest

Based on the characteristics of the timber and timber products industry in
different countries, the current GTI questionnaire is divided into three categories:
timber producing countries, timber manufacturing countries and timberlog, sawnwood, and veneer, etc. For timber manufacturing countries (like China),

products industry.

the questionnaire focuses on the developments of local timber processing and

The value of the index is between 0-100%, and 50% is the critical value of the

manufacturing, covering floor, door, plywood, and furniture, etc. For timberindex. A GTI index reading above 50 percent indicates that the industry prosperity

consuming countries, the questionnaire focuses on the developments of theis generally expanding; below 50 percent indicates that it is generally declining.

timber products facing the end market.

Declaration

Contact Us

GTI report is compiled based on the data provided by the timber enterprises in the pilot countries. The data can not be used in investment decision-making, but
can help to understand the timber industry trend.
The rights to interpret data and the intellectual property contained in the reports are owned by ITTO and GGSC Secretariat jointly. ITTO and GGSC Secretariat

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

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.

22

23

GGSC-No. 07/2024

About This Report

GTI Report 2024

Survey Methodology

Data and InterpretationὯ䈊㖞Ხ⋈䴆偹ᶢⲛ挅Ḩ妵

'>K>'[E_kXX>,/E_/E/f/f/{With the support of the International Tropical Timber Organization (ITTO), the

GTI index contains diffusion index and comprehensive index.

Global Timber Index (GTI) platform has set up focal points in pilot countries ofboth timber producing and timber consuming countries. At present, focal points(1) The calculation of GTI diffusion index. GTI has 11 diffusion indexes (or called

have been established in 9 countries, including Indonesia, Malaysia, Thailand,

sub-indices) based on the data from 11 objective questions which covers

Gabon, Republic of the Congo, Ghana, Brazil, Mexico and China.

production (or harvesting), new orders, new export orders, existing orders,

About ITTO

About GGSC

index is calculated by adding the percentage of enterprises with positive answers

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

Global Green Supply Chains Initiative (GGSC) is part of the Legal andto half of the percentage with unchanged answers.

intergovernmental

sustainable

Sustainable Supply Chains (LSSC) Programme, which was approved atinventory of products, purchasing quantity, import, purchasing prices of main raw
At the end of each month, focal points of the pilot countries organize the leadingmaterials, inventory of raw material, employees, and delivery time. The diffusion

enterprises to fill out the GTI questionnaire, and then the Global Green Supply
Chains Initiative (GGSC) Secretariat organizes experts to summarize and analyze
the data, and write the report.

organization

promotingthemanagement and conservation of tropical forests and the expansion

the 53rd session of the International Tropical Timber Council for being(2) The calculation of GTI comprehensive index. GTI comprehensive index (GTI

and diversification of international trade in tropical timber from

included into the Biennial Work Programme (BWP) of International

index for short) is calculated based on the diffusion indexes of five of the indexes

sustainably managed and legally harvested forests. It located in

Tropical Timber Organization (ITTO). Launched in 2018 by leadingwith different weights: production (harvesting), new orders, inventory of raw

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

Chinese enterprises in forest products industry, GGSC became an

consuming countries. For the timber producing countries, the questionnairematerial, employees, delivery time. The five diffusion indexes and their weights

ITTO’s membership represents about 90% of the global tropical timberinternational initiative in 2019. Since then, GGSC has been acting as afocuses on the developments of local timber harvesting and supplying, covering

are determined according to their leading influence on the industrial economy.

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

global platform for serving the sustainable development of the forest

Based on the characteristics of the timber and timber products industry in
different countries, the current GTI questionnaire is divided into three categories:
timber producing countries, timber manufacturing countries and timberlog, sawnwood, and veneer, etc. For timber manufacturing countries (like China),

products industry.

the questionnaire focuses on the developments of local timber processing and

The value of the index is between 0-100%, and 50% is the critical value of the

manufacturing, covering floor, door, plywood, and furniture, etc. For timberindex. A GTI index reading above 50 percent indicates that the industry prosperity

consuming countries, the questionnaire focuses on the developments of theis generally expanding; below 50 percent indicates that it is generally declining.

timber products facing the end market.

Declaration

Contact Us

GTI report is compiled based on the data provided by the timber enterprises in the pilot countries. The data can not be used in investment decision-making, but
can help to understand the timber industry trend.
The rights to interpret data and the intellectual property contained in the reports are owned by ITTO and GGSC Secretariat jointly. ITTO and GGSC Secretariat

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

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.

22

23This report was prepared by GGSC, with support of
ITTO and IPIM, and Focal Points of Indonesia,
Malaysia, Thailand, Gabon, Republic of Congo, Ghana,Brazil, Mexico and China.

GTIREPORT

GTI REPORT 2024
Global Timber Index

MONTHLY
GGSC-No. 07/2024

JOIN USGGSC

ITTO

Contact person: Ms. Yinfeng Li

Contact person: Mr. Qiang Li

Email: ggsc@itto-ggsc.org

Email: li@itto.int

Tel: 86-10-6288 8626
Website: www.itto-ggsc.org

Website: www.itto.int
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