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

GTIREPORT

GTI REPORT 2024
Global Timber Index

MONTHLY
GGSC-No. 06/2024

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Contact person: Ms. Yinfeng Li

Contact person: Mr. Qiang Li

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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)

Republic of the Congo
ㆍMinistry of Forest Economy

ThailandBrazilㆍThai Timber Association (TTA)ㆍSTCP Engenharia de Projetos Ltda

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)

Indonesia
ㆍSustainable Forest Management of the
Ministry of Environment and Forestry

12-13

GTI-ROC Report

14-15

GTI-Brazil Report

16-19

GTI-Mexico Report

20-21

GTI-China Report

22-23

About This Report01

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)

Republic of the Congo
ㆍMinistry of Forest Economy

ThailandBrazilㆍThai Timber Association (TTA)ㆍSTCP Engenharia de Projetos Ltda

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)

Indonesia
ㆍSustainable Forest Management of the
Ministry of Environment and Forestry

12-13

GTI-ROC Report

14-15

GTI-Brazil Report

16-19

GTI-Mexico Report

20-21

GTI-China Report

22-23

About This Report01

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. 06/2024

GTI Report 2024

Overview of the GTI Index
Timber markets in many countries show positive signs

GTI-Comprehensive Index
60

GTI REPORT 2024

59.5
51.5
47.2
46.7
46.5
43.2
41.2
33.3

40

20
Jan-2024
Indonesia

Malaysia

Feb-2024
ROC

Mar-2024

Apr-2024

Gabon

BrazilThe Global Timber Index (GTI) Report for June 2024 brings encouraging news for the
global timber sector, as it reveals that this month, the GTI indexes for all pilot
countries increased compared with the previous month, and the GTI-Producers, a
specialized index on timber production, increased by 8.8 percentage points from theprevious month, all signaling a positive turnaround against the persistent downturn inthe sector.

May-2024
MexicoJun-2024
China

Thailand(EUDR), Indonesia was considering adjustments to land inventory measurement
methods in the country, and Malaysia’s Sabah Forestry Department had officiallylaunched a partnership with the European Union to update the Sabah Timber Legality
Assurance System (TLAS). In Gabon, the Ministry of Water and Forests had bolsteredthe vehicle fleet to assist forest rangers in carrying out tasks in the field. Thisenhancement would help fight against illegal logging activities, protect flora andfauna, and would also allow the Ministry of Water and Forests to better support
companies towards certification.

Notably, the GTI indexes for Thailand (59.5%) and Indonesia (51.5%) were above thecritical value of 50%, with harvesting, orders and production all improving. The GTI
indexes for Mexico, Brazil, Republic of the Congo, Gabon and Malaysia registered
47.2%, 46.5%, 43.2%, 41.2% and 33.3% respectively, representing an increase of 4.7,
8.6, 2.5, 4.0 and 3.2 percentage points over the previous month. By sub-index, the neworders for Mexican sample enterprises increased compared with the previous month,
the production volume of Brazilian sample enterprises rose, and in the other countries,
both timber production and orders showed a decrease in volume, however, thecontraction eased. China's GTI index stood at 46.7%, an increase of 4.5 percentage
points from the previous month, and the slowdown in effective demand and the sharp
rise in shipping costs had a great impact on the timber enterprises.

In some countries, new development opportunities had also emerged for the timber
sector. In June, Claudia Sheinbaum was elected as the new President of Mexico. She
announced that the new government would develop 10 additional Well-Being
Development Hubs across the country, and according to her plans, these hubs would
be integrated with 10 new industrial corridors, among which the Gulf Corridor(covering Veracruz, Tabasco, Chiapas, and Campeche) would prioritize industries
such as timber. Recently, Brazilian Congress approved a new law whereby
Environmental Impact Study (EIA) and the respective Environmental Impact Report(RIMA) are no longer required for the issuance of silviculture project’s environmental
permit, while in practical terms, EIA/RIMA used to be a costly and time-consuming
step in the environmental licensing process.

This month, GTI pilot countries had also made encouraging progress in sustainable
forest management. In order to align with the European Union Deforestation Regulation

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. 06/2024

GTI Report 2024

Overview of the GTI Index
Timber markets in many countries show positive signs

GTI-Comprehensive Index
60

GTI REPORT 2024

59.5
51.5
47.2
46.7
46.5
43.2
41.2
33.3

40

20
Jan-2024
Indonesia

Malaysia

Feb-2024
ROC

Mar-2024

Apr-2024

Gabon

BrazilThe Global Timber Index (GTI) Report for June 2024 brings encouraging news for the
global timber sector, as it reveals that this month, the GTI indexes for all pilot
countries increased compared with the previous month, and the GTI-Producers, a
specialized index on timber production, increased by 8.8 percentage points from theprevious month, all signaling a positive turnaround against the persistent downturn inthe sector.

May-2024
MexicoJun-2024
China

Thailand(EUDR), Indonesia was considering adjustments to land inventory measurement
methods in the country, and Malaysia’s Sabah Forestry Department had officiallylaunched a partnership with the European Union to update the Sabah Timber Legality
Assurance System (TLAS). In Gabon, the Ministry of Water and Forests had bolsteredthe vehicle fleet to assist forest rangers in carrying out tasks in the field. Thisenhancement would help fight against illegal logging activities, protect flora andfauna, and would also allow the Ministry of Water and Forests to better support
companies towards certification.

Notably, the GTI indexes for Thailand (59.5%) and Indonesia (51.5%) were above thecritical value of 50%, with harvesting, orders and production all improving. The GTI
indexes for Mexico, Brazil, Republic of the Congo, Gabon and Malaysia registered
47.2%, 46.5%, 43.2%, 41.2% and 33.3% respectively, representing an increase of 4.7,
8.6, 2.5, 4.0 and 3.2 percentage points over the previous month. By sub-index, the neworders for Mexican sample enterprises increased compared with the previous month,
the production volume of Brazilian sample enterprises rose, and in the other countries,
both timber production and orders showed a decrease in volume, however, thecontraction eased. China's GTI index stood at 46.7%, an increase of 4.5 percentage
points from the previous month, and the slowdown in effective demand and the sharp
rise in shipping costs had a great impact on the timber enterprises.

In some countries, new development opportunities had also emerged for the timber
sector. In June, Claudia Sheinbaum was elected as the new President of Mexico. She
announced that the new government would develop 10 additional Well-Being
Development Hubs across the country, and according to her plans, these hubs would
be integrated with 10 new industrial corridors, among which the Gulf Corridor(covering Veracruz, Tabasco, Chiapas, and Campeche) would prioritize industries
such as timber. Recently, Brazilian Congress approved a new law whereby
Environmental Impact Study (EIA) and the respective Environmental Impact Report(RIMA) are no longer required for the issuance of silviculture project’s environmental
permit, while in practical terms, EIA/RIMA used to be a costly and time-consuming
step in the environmental licensing process.

This month, GTI pilot countries had also made encouraging progress in sustainable
forest management. In order to align with the European Union Deforestation Regulation

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. 06/2024

GTI-Indonesia Report

GTI Report 2024

GTI-Indonesia Index in June 2024

Table: Overview of GTI-Indonesia Sub-Indexes (%)
2024.012024.022024.032024.04

2024.052024.06

MoM

Performance

Comprehensive Index

45.7

44.0

37.1

48.8

42.1

51.5

9.4 ↑

ExpandHarvesting Index

26.1

70.0

56.5

54.3

62.5

76.1

13.6 ↑

ExpandProduction Index

50.0

50.0

20.0

62.5

28.6

57.1

28.5 ↑

ExpandNew Orders Index

46.7

44.0

50.0

45.2

50.0

51.7

1.7 ↑

ExpandExport Orders Index

33.3

40.0

50.0

35.7

58.3

66.7

8.4 ↑

ExpandExisting Orders Index

36.7

48.0

51.8

50.0

43.5

45.0

1.5 ↑

Contract

Inventory Index of Finished Products

45.0

58.0

48.2

58.1

54.8

66.7

11.9 ↑

ExpandPurchase Quantity Index

27.3

44.4

20.0

50.0

65.0

50.0

-15.0 ↓

StablePurchase Price Index

42.3

40.0

50.0

53.8

54.2

54.2

0.0

ExpandInventory Index of Main Raw Materials

38.5

45.0

25.0

46.2

50.0

58.3

8.3 ↑

ExpandEmployees Index

46.7

42.0

44.6

43.5

41.9

48.3

6.4 ↑

Contract

Delivery Time Index

40.0

36.0

37.5

41.9

43.5

41.7

-1.8 ↓

Contract

GTI-Indonesia Comprehensive Index
80
60

45.7

48.8

44.0

37.1

42.1

51.5

40
20
0
Jan-2024

Feb-2024

Mar-2024

Apr-2024

May-2024

Jun-2024

In May, Indonesia's exports amounted to US$22.327 billion and imports stood at US$19.4

In June, the GTI-Indonesia index registered 51.5%, an increase of 9.4 percentage points

billion, resulting in a trade surplus of US$2.927 billion, of which the export value offrom the previous month, rose above the critical value after 11 months, indicating that theagriculture, forestry, and fisheries increased by 32.45% month-on-month. Indonesia’sbusiness prosperity of the superior timber enterprises represented by the GTI-Indonesia

Minister of Environment and Forestry, Siti Nurbaya Bakar, emphasized the need forindex expanded from last month. This month, the timber sector in Indonesia saw aadjustments to land inventory measurement methods in Indonesia to align with thesignificant increase in harvesting, production and orders when compared to the previous

European Union Deforestation Regulation (EUDR). "In implementing the EUDR, themonth, indicating improvements on both supply and demand sides and signaling a

European Union introduces tools for land and forest inventories. However, if the GFWrecovery in the sector.

(Global Forest Watch) method is used, errors are significant in Indonesia," she remarked.
At the Oslo Tropical Forest Forum (OTFF) 2024 in June, Indonesia’s Ministry of Environment

As for the 11 sub-indexes, seven indexes (harvesting, production, new orders, export

and Forestry and the Bezos Earth Fund signed a Memorandum of Understanding (MoU),

orders, inventory of finished products, purchase price, and inventory of main raw

which aims to support Indonesia’s Nationally Determined Contribution (NDC) and FOLU

materials) were above the critical value of 50%, one index (purchase quantity) was at the(forestry and other land use) Net Sink Program by 2030. For the period June 2024, The HPE

critical value, and three indexes (existing orders, employees, and delivery time) were below(benchmark export prices) of wood products experienced an increase in several types of

the critical value. Compared with the previous month, the indexes for harvesting,22

wood, namely sawn wood with a cross-sectional area of 1,000 mm - 4,000 mm fromproduction, new orders, export orders, existing orders, inventory of finished products,

species such as ebony and teak as well as from plantation forests species such as acasia,

inventory of main raw materials, and employees increased by 1.5-28.5 percentage points,

sengon, balsa, eucalyptus, and sungkai, according to an official statement from thethe index for purchase price was unchanged from the previous month, while the indexes

Ministry of Trade. Meanwhile, the HPE of veneer wood from plantation forests, wood infor purchase quantity and delivery time declined by 1.8-15.0 percentage points.

2

chips or particles and sawn wood with a cross-sectional area of 1,000 mm - 4,000 mm

2

from merbau species had decreased, added the statement.

02

03

GGSC-No. 06/2024

GTI-Indonesia Report

GTI Report 2024

GTI-Indonesia Index in June 2024

Table: Overview of GTI-Indonesia Sub-Indexes (%)
2024.012024.022024.032024.04

2024.052024.06

MoM

Performance

Comprehensive Index

45.7

44.0

37.1

48.8

42.1

51.5

9.4 ↑

ExpandHarvesting Index

26.1

70.0

56.5

54.3

62.5

76.1

13.6 ↑

ExpandProduction Index

50.0

50.0

20.0

62.5

28.6

57.1

28.5 ↑

ExpandNew Orders Index

46.7

44.0

50.0

45.2

50.0

51.7

1.7 ↑

ExpandExport Orders Index

33.3

40.0

50.0

35.7

58.3

66.7

8.4 ↑

ExpandExisting Orders Index

36.7

48.0

51.8

50.0

43.5

45.0

1.5 ↑

Contract

Inventory Index of Finished Products

45.0

58.0

48.2

58.1

54.8

66.7

11.9 ↑

ExpandPurchase Quantity Index

27.3

44.4

20.0

50.0

65.0

50.0

-15.0 ↓

StablePurchase Price Index

42.3

40.0

50.0

53.8

54.2

54.2

0.0

ExpandInventory Index of Main Raw Materials

38.5

45.0

25.0

46.2

50.0

58.3

8.3 ↑

ExpandEmployees Index

46.7

42.0

44.6

43.5

41.9

48.3

6.4 ↑

Contract

Delivery Time Index

40.0

36.0

37.5

41.9

43.5

41.7

-1.8 ↓

Contract

GTI-Indonesia Comprehensive Index
80
60

45.7

48.8

44.0

37.1

42.1

51.5

40
20
0
Jan-2024

Feb-2024

Mar-2024

Apr-2024

May-2024

Jun-2024

In May, Indonesia's exports amounted to US$22.327 billion and imports stood at US$19.4

In June, the GTI-Indonesia index registered 51.5%, an increase of 9.4 percentage points

billion, resulting in a trade surplus of US$2.927 billion, of which the export value offrom the previous month, rose above the critical value after 11 months, indicating that theagriculture, forestry, and fisheries increased by 32.45% month-on-month. Indonesia’sbusiness prosperity of the superior timber enterprises represented by the GTI-Indonesia

Minister of Environment and Forestry, Siti Nurbaya Bakar, emphasized the need forindex expanded from last month. This month, the timber sector in Indonesia saw aadjustments to land inventory measurement methods in Indonesia to align with thesignificant increase in harvesting, production and orders when compared to the previous

European Union Deforestation Regulation (EUDR). "In implementing the EUDR, themonth, indicating improvements on both supply and demand sides and signaling a

European Union introduces tools for land and forest inventories. However, if the GFWrecovery in the sector.

(Global Forest Watch) method is used, errors are significant in Indonesia," she remarked.
At the Oslo Tropical Forest Forum (OTFF) 2024 in June, Indonesia’s Ministry of Environment

As for the 11 sub-indexes, seven indexes (harvesting, production, new orders, export

and Forestry and the Bezos Earth Fund signed a Memorandum of Understanding (MoU),

orders, inventory of finished products, purchase price, and inventory of main raw

which aims to support Indonesia’s Nationally Determined Contribution (NDC) and FOLU

materials) were above the critical value of 50%, one index (purchase quantity) was at the(forestry and other land use) Net Sink Program by 2030. For the period June 2024, The HPE

critical value, and three indexes (existing orders, employees, and delivery time) were below(benchmark export prices) of wood products experienced an increase in several types of

the critical value. Compared with the previous month, the indexes for harvesting,22

wood, namely sawn wood with a cross-sectional area of 1,000 mm - 4,000 mm fromproduction, new orders, export orders, existing orders, inventory of finished products,

species such as ebony and teak as well as from plantation forests species such as acasia,

inventory of main raw materials, and employees increased by 1.5-28.5 percentage points,

sengon, balsa, eucalyptus, and sungkai, according to an official statement from thethe index for purchase price was unchanged from the previous month, while the indexes

Ministry of Trade. Meanwhile, the HPE of veneer wood from plantation forests, wood infor purchase quantity and delivery time declined by 1.8-15.0 percentage points.

2

chips or particles and sawn wood with a cross-sectional area of 1,000 mm - 4,000 mm

2

from merbau species had decreased, added the statement.

02

03

GGSC-No. 06/2024

GTI-Indonesia Report

GTI Report 2024

Brief on Indonesian Timber Industry(non-pulp and paper) which are currently being developed in many community/private
forests.

• In June 2024, overall (national level), there was not much change in log production
from both natural forest concessions and plantation forest concessions (state
forests). When compared to May 2024, log production from natural forests only
increased very slightly by 0.32% and log production from plantation forests decreasedslightly by 2.04%. Meanwhile, when compared on a year-to-year basis with June
2023, log production from natural forest concessions and plantation forest
concessions was relatively the same.

• In June 2024, there were still variations in log prices for several types in several
regions in Indonesia, for example: in the East Kalimantan region, Meranti (Shoreaspp.) logs experienced a slight increase in prices, while in the North Sumatra region
there was a slight decrease in prices, but in the Central Kalimantan, North
Kalimantan, Maluku, Papua and West Papua regions there was no change in prices.
Likewise with logs from plants (Acacia, Eucalyptus), there were regions that haveslightly increased prices, but in other regions they remain the same.

• The condition of log production in June 2024 which did not change much whencompared to the previous month, or on a year-to-year basis with June 2023 was due
to several factors, including, first factor for log production from plantation forests ismore influenced by the need for more stable raw material for logs by the processing
industry (pulp and paper) as a result of more stable export market conditions. Second
factor for log production from natural forests, more likely to be influenced bydomestic market conditions and exports of wood products which tend to remain
sluggish and unstable. Whereas the export market is unstable and tends to besluggish, the absorption of logs from natural forests for raw materials by the woodprocessing industry, which is mostly export-oriented, is also relatively stagnant(there is a policy of prohibiting the export of logs from natural forests and limiting thecross-sectional area of processed wood that can be exported). The Third Factor is thetendency for the wood processing industry, which has been using raw materials fromnatural forest logs, to gradually switch to using plantation wood raw materials• For exports of processed wood products in June 2024 compared to May 2024, whenviewed from the overall export value there was an increase of 30.57%. Meanwhile,when viewed from the type of product, there were variations in increase and decrease,
where products that have increased in export value were: Prefabricated Buildings,
Chipwood, Wood Furniture, Crafts, and Pulp. Meanwhile, products that experienced adecrease in export value were Panels, Paper, Veneer, and Woodworking.

Information provided by GTI-Indonesia Focal Point

Main Challenges Reported by
GTI-Indonesia Enterprises

Main Suggestions from
GTI-Indonesia Enterprises• The market conditions were sluggish and prices for processed wood
products had not yet normalized.

• Adjusted operational activities to the weather conditions in thework area.

• The company was also still constrained by the use of transportation
roads in the concession area which were originally built and owned by
the concession, but in its development the road was used as a publicroad and currently the concession must obtain prior approval from theRegional Government which takes time to process if it wants to use it.

• Prepare to add and enter international voluntary forestry
certification schemes.
• Seek to accelerate the improvement of transportation roads andmaintain the performance of operational activities that have beenachieved.

• For some wood processing companies, the export activities were stillaffected by the unfavorable situation in the Middle East.

• Adjust production activities, and pay attention to the developmentsof domestic and global processed wood market conditions.

• Despite the increase in exports, the global market conditions forplywood products were still unstable and tended to be sluggish,
especially for the Japanese market.

• In order to meet the requirements demanded by buyers, thecompany could seek to obtain the Sustainable Biomass Program(SBP) certification.

• There was no increase in log orders received from buyers or partners,
and the selling price of logs was still relatively low. On the other hand,the company still had to incur high operational costs.

• Encourage the implementation of incentives for the production anduse of processed wood products sourced from sustainably
managed and/or legal forests.

• There were still heavy rainy weather conditions that fell almost every
day in the field, hampering operational activities. In addition, althoughorders from buyers had started to stabilize, the selling prices of logs
had not increased as expected.

• It is important to immediately evaluate local regulations thathinder the circulation of timber between islands/provinces, so thatthe wood processing industry can more easily meet its raw
material needs.

• The processed wood market was still unstable (fluctuating orders)
and tended to be sluggish with declining demand in several major
export destination countries, especially for plywood products (forMerbau wood products there was a tendency to increase). Demand
from overseas buyers for products from non-Merbau species was also
hampered by regulations that limit the maximum cross-sectional areaof exportable wood products.

04• Hope the government could encourage companies to diversify wood
products. In addition to the export market, strengthening thedomestic market was also important. Besides, it's suggested thatthe government reduce the burden borne by companies in the formof both taxes and non-taxes.
• To overcome the low prices of logs from natural forests and not allof them are absorbed by the domestic wood processing industry,technological and strategic efforts and breakthroughs are needed,
including relaxation of wood product marketing policies bystrengthening and finding alternative markets for domestic wood
products and export markets. In addition, it is necessary to
improve the supply chain and value of wood products.

05

GGSC-No. 06/2024

GTI-Indonesia Report

GTI Report 2024

Brief on Indonesian Timber Industry(non-pulp and paper) which are currently being developed in many community/private
forests.

• In June 2024, overall (national level), there was not much change in log production
from both natural forest concessions and plantation forest concessions (state
forests). When compared to May 2024, log production from natural forests only
increased very slightly by 0.32% and log production from plantation forests decreasedslightly by 2.04%. Meanwhile, when compared on a year-to-year basis with June
2023, log production from natural forest concessions and plantation forest
concessions was relatively the same.

• In June 2024, there were still variations in log prices for several types in several
regions in Indonesia, for example: in the East Kalimantan region, Meranti (Shoreaspp.) logs experienced a slight increase in prices, while in the North Sumatra region
there was a slight decrease in prices, but in the Central Kalimantan, North
Kalimantan, Maluku, Papua and West Papua regions there was no change in prices.
Likewise with logs from plants (Acacia, Eucalyptus), there were regions that haveslightly increased prices, but in other regions they remain the same.

• The condition of log production in June 2024 which did not change much whencompared to the previous month, or on a year-to-year basis with June 2023 was due
to several factors, including, first factor for log production from plantation forests ismore influenced by the need for more stable raw material for logs by the processing
industry (pulp and paper) as a result of more stable export market conditions. Second
factor for log production from natural forests, more likely to be influenced bydomestic market conditions and exports of wood products which tend to remain
sluggish and unstable. Whereas the export market is unstable and tends to besluggish, the absorption of logs from natural forests for raw materials by the woodprocessing industry, which is mostly export-oriented, is also relatively stagnant(there is a policy of prohibiting the export of logs from natural forests and limiting thecross-sectional area of processed wood that can be exported). The Third Factor is thetendency for the wood processing industry, which has been using raw materials fromnatural forest logs, to gradually switch to using plantation wood raw materials• For exports of processed wood products in June 2024 compared to May 2024, whenviewed from the overall export value there was an increase of 30.57%. Meanwhile,when viewed from the type of product, there were variations in increase and decrease,
where products that have increased in export value were: Prefabricated Buildings,
Chipwood, Wood Furniture, Crafts, and Pulp. Meanwhile, products that experienced adecrease in export value were Panels, Paper, Veneer, and Woodworking.

Information provided by GTI-Indonesia Focal Point

Main Challenges Reported by
GTI-Indonesia Enterprises

Main Suggestions from
GTI-Indonesia Enterprises• The market conditions were sluggish and prices for processed wood
products had not yet normalized.

• Adjusted operational activities to the weather conditions in thework area.

• The company was also still constrained by the use of transportation
roads in the concession area which were originally built and owned by
the concession, but in its development the road was used as a publicroad and currently the concession must obtain prior approval from theRegional Government which takes time to process if it wants to use it.

• Prepare to add and enter international voluntary forestry
certification schemes.
• Seek to accelerate the improvement of transportation roads andmaintain the performance of operational activities that have beenachieved.

• For some wood processing companies, the export activities were stillaffected by the unfavorable situation in the Middle East.

• Adjust production activities, and pay attention to the developmentsof domestic and global processed wood market conditions.

• Despite the increase in exports, the global market conditions forplywood products were still unstable and tended to be sluggish,
especially for the Japanese market.

• In order to meet the requirements demanded by buyers, thecompany could seek to obtain the Sustainable Biomass Program(SBP) certification.

• There was no increase in log orders received from buyers or partners,
and the selling price of logs was still relatively low. On the other hand,the company still had to incur high operational costs.

• Encourage the implementation of incentives for the production anduse of processed wood products sourced from sustainably
managed and/or legal forests.

• There were still heavy rainy weather conditions that fell almost every
day in the field, hampering operational activities. In addition, althoughorders from buyers had started to stabilize, the selling prices of logs
had not increased as expected.

• It is important to immediately evaluate local regulations thathinder the circulation of timber between islands/provinces, so thatthe wood processing industry can more easily meet its raw
material needs.

• The processed wood market was still unstable (fluctuating orders)
and tended to be sluggish with declining demand in several major
export destination countries, especially for plywood products (forMerbau wood products there was a tendency to increase). Demand
from overseas buyers for products from non-Merbau species was also
hampered by regulations that limit the maximum cross-sectional areaof exportable wood products.

04• Hope the government could encourage companies to diversify wood
products. In addition to the export market, strengthening thedomestic market was also important. Besides, it's suggested thatthe government reduce the burden borne by companies in the formof both taxes and non-taxes.
• To overcome the low prices of logs from natural forests and not allof them are absorbed by the domestic wood processing industry,technological and strategic efforts and breakthroughs are needed,
including relaxation of wood product marketing policies bystrengthening and finding alternative markets for domestic wood
products and export markets. In addition, it is necessary to
improve the supply chain and value of wood products.

05

GGSC-No. 06/2024

GTI-Malaysia Report

GTI Report 2024

GTI-Malaysia Index in June 2024

Table: Overview of GTI-Malaysia Sub-Indexes (%)
2024.012024.022024.032024.04

2024.052024.06

MoM

Performance

Comprehensive Index

26.8

23.2

25.7

31.1

30.1

33.3

3.2 ↑

Contract

Harvesting Index

16.7

25.0

56.3

31.3

25.0

43.8

18.8 ↑

Contract80

Production Index

27.8

16.7

16.7

25.0

27.8

33.3

5.5 ↑

Contract60

New Orders Index

30.0

15.0

30.0

30.0

25.0

35.0

10.0 ↑

Contract

Export Orders Index

40.0

20.0

27.8

22.2

27.8

27.8

0.0

Contract

Existing Orders Index

20.0

25.0

10.0

15.0

20.0

25.0

5.0 ↑

Contract

Inventory Index of Finished Products

35.0

40.0

50.0

61.1

35.0

55.0

20.0 ↑

ExpandPurchase Quantity Index

18.8

16.7

16.7

16.7

38.9

27.8

-11.1 ↓

Contract

Purchase Price Index

50.0

38.9

55.6

50.0

44.4

56.3

11.9 ↑

ExpandInventory Index of Main Raw Materials

16.7

25.0

33.3

38.9

44.4

44.4

0.0

Contract

Employees Index

40.0

35.0

25.0

35.0

35.0

25.0

-10.0 ↓

Contract

Delivery Time Index

33.3

33.3

27.8

33.3

27.8

33.3

5.5 ↑

Contract

GTI-Malaysia Comprehensive Index

40

26.8

23.2

31.1

25.7

30.1

33.3

20
0
Jan-2024

Feb-2024

Mar-2024

Apr-2024

In May, Malaysia's exports reached RM128.2 billion and imports hit RM118.1 billion,
representing year-on-year growth of 7.3% and 13.8% respectively. Currently, the Red Sea
crisis has spread to the Malaysian shipping market, resulting in higher shipping rates andcongestion at some ports. Malaysian industrial insiders said that Port Klang had been
grappling with congestion and slow clearance since May, resulting in pressure from
customers for the delivery. In 2024, the furniture market in Malaysia is projected togenerate a revenue of RM4.33 billion, according to Statista Market Insights. Among thevarious segments within the Furniture market, the largest one is the Living Room Furniture
segment, which is estimated to have a market volume of RM1.48 billion in 2024. In termsof sustainable forest management, Sarawak is transitioning from the era of logging-based
economy into sustainable management of forests, said Sarawak Premier when he attended
the 2024 Sarawak-level International Forest Day celebrations. He added that the Sarawak
state government had reduced the state's logging rate by about two million cubic meters
annually, and Sarawak no longer depends on logging activities as a source of income but
is now exploring renewable energy and other sustainable practices to drive its economic
growth; in Kedah, effort has also been made to preserve the forest reserves, and the
Perikatan Nasional (PN) state government has not approved a new logging concession
since assuming power in 2020, according to an official of the state; in addition, the Sabah
Forestry Department and the European Union officially launched a groundbreaking
partnership, to update the Sabah Timber Legality Assurance System (TLAS) to meet therequirements of European Union Deforestation Regulation (EUDR).

May-2024

Jun-2024

indicating that the business prosperity of the superior timber enterprises represented by
the GTI-Malaysia index shrank from last month, however, the contraction eased.
As for the 11 sub-indexes, the inventory index of finished products and the purchase priceindex were above the critical value of 50%, while the remaining 9 indexes were all below
the critical value. Compared with the previous month, the indexes for harvesting,production, new orders, existing orders, inventory of finished products, purchase price, anddelivery time increased by 3.2-20.0 percentage points; the indexes for export orders andinventory of main raw materials were unchanged from the previous month; and the indexes
for purchase quantity and employees declined by 10.0-11.1 percentage points.

Main Challenges Reported
by GTI-Malaysia Enterprises

Main Suggestions from
GTI-Malaysia Enterprises• Demand for timber was insufficient.
• Plywood prices were weak, while freight rates increased.
• Buyer’s costs increased due to the depreciation of Japanese Yen.
• Orders were not enough, and the costs for freight to USA increased.
• Costs of raw materials (e.g., woodwaste) were high.
• Raw material supply from concession companies was inconsistent,
due to the poor weather.

• Slow down production.
• Expand external channels for sourcing raw materials.
• Need government assistant to ease port congestion.
• Hope the government could take steps to stimulate the usage of sawn
timber in construction industries.
• It's suggested that the government increase spending on building andinfrastructure expansion, so as to increase consumption of building
materials.

In June, the GTI-Malaysia index registered 33.3%, an increase of 3.2 percentage points
from the previous month, was below the critical value (50%) for 20 consecutive months,

06

07

GGSC-No. 06/2024

GTI-Malaysia Report

GTI Report 2024

GTI-Malaysia Index in June 2024

Table: Overview of GTI-Malaysia Sub-Indexes (%)
2024.012024.022024.032024.04

2024.052024.06

MoM

Performance

Comprehensive Index

26.8

23.2

25.7

31.1

30.1

33.3

3.2 ↑

Contract

Harvesting Index

16.7

25.0

56.3

31.3

25.0

43.8

18.8 ↑

Contract80

Production Index

27.8

16.7

16.7

25.0

27.8

33.3

5.5 ↑

Contract60

New Orders Index

30.0

15.0

30.0

30.0

25.0

35.0

10.0 ↑

Contract

Export Orders Index

40.0

20.0

27.8

22.2

27.8

27.8

0.0

Contract

Existing Orders Index

20.0

25.0

10.0

15.0

20.0

25.0

5.0 ↑

Contract

Inventory Index of Finished Products

35.0

40.0

50.0

61.1

35.0

55.0

20.0 ↑

ExpandPurchase Quantity Index

18.8

16.7

16.7

16.7

38.9

27.8

-11.1 ↓

Contract

Purchase Price Index

50.0

38.9

55.6

50.0

44.4

56.3

11.9 ↑

ExpandInventory Index of Main Raw Materials

16.7

25.0

33.3

38.9

44.4

44.4

0.0

Contract

Employees Index

40.0

35.0

25.0

35.0

35.0

25.0

-10.0 ↓

Contract

Delivery Time Index

33.3

33.3

27.8

33.3

27.8

33.3

5.5 ↑

Contract

GTI-Malaysia Comprehensive Index

40

26.8

23.2

31.1

25.7

30.1

33.3

20
0
Jan-2024

Feb-2024

Mar-2024

Apr-2024

In May, Malaysia's exports reached RM128.2 billion and imports hit RM118.1 billion,
representing year-on-year growth of 7.3% and 13.8% respectively. Currently, the Red Sea
crisis has spread to the Malaysian shipping market, resulting in higher shipping rates andcongestion at some ports. Malaysian industrial insiders said that Port Klang had been
grappling with congestion and slow clearance since May, resulting in pressure from
customers for the delivery. In 2024, the furniture market in Malaysia is projected togenerate a revenue of RM4.33 billion, according to Statista Market Insights. Among thevarious segments within the Furniture market, the largest one is the Living Room Furniture
segment, which is estimated to have a market volume of RM1.48 billion in 2024. In termsof sustainable forest management, Sarawak is transitioning from the era of logging-based
economy into sustainable management of forests, said Sarawak Premier when he attended
the 2024 Sarawak-level International Forest Day celebrations. He added that the Sarawak
state government had reduced the state's logging rate by about two million cubic meters
annually, and Sarawak no longer depends on logging activities as a source of income but
is now exploring renewable energy and other sustainable practices to drive its economic
growth; in Kedah, effort has also been made to preserve the forest reserves, and the
Perikatan Nasional (PN) state government has not approved a new logging concession
since assuming power in 2020, according to an official of the state; in addition, the Sabah
Forestry Department and the European Union officially launched a groundbreaking
partnership, to update the Sabah Timber Legality Assurance System (TLAS) to meet therequirements of European Union Deforestation Regulation (EUDR).

May-2024

Jun-2024

indicating that the business prosperity of the superior timber enterprises represented by
the GTI-Malaysia index shrank from last month, however, the contraction eased.
As for the 11 sub-indexes, the inventory index of finished products and the purchase priceindex were above the critical value of 50%, while the remaining 9 indexes were all below
the critical value. Compared with the previous month, the indexes for harvesting,production, new orders, existing orders, inventory of finished products, purchase price, anddelivery time increased by 3.2-20.0 percentage points; the indexes for export orders andinventory of main raw materials were unchanged from the previous month; and the indexes
for purchase quantity and employees declined by 10.0-11.1 percentage points.

Main Challenges Reported
by GTI-Malaysia Enterprises

Main Suggestions from
GTI-Malaysia Enterprises• Demand for timber was insufficient.
• Plywood prices were weak, while freight rates increased.
• Buyer’s costs increased due to the depreciation of Japanese Yen.
• Orders were not enough, and the costs for freight to USA increased.
• Costs of raw materials (e.g., woodwaste) were high.
• Raw material supply from concession companies was inconsistent,
due to the poor weather.

• Slow down production.
• Expand external channels for sourcing raw materials.
• Need government assistant to ease port congestion.
• Hope the government could take steps to stimulate the usage of sawn
timber in construction industries.
• It's suggested that the government increase spending on building andinfrastructure expansion, so as to increase consumption of building
materials.

In June, the GTI-Malaysia index registered 33.3%, an increase of 3.2 percentage points
from the previous month, was below the critical value (50%) for 20 consecutive months,

06

07

GGSC-No. 06/2024

GTI-Thailand Report

GTI Report 2024

GTI-Thailand Index in June 2024

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

GTI-Thailand Comprehensive Index
80
60

49.8

45.6

59.5

54.8

44.7

43.1

40
20

2024.012024.022024.032024.04

2024.052024.06

MoM

Performance

Comprehensive Index

49.8

45.6

54.8

44.7

43.1

59.5

16.4 ↑

ExpandHarvesting Index

64.3

41.7

65.0

33.3

37.5

56.3

18.8 ↑

ExpandProduction Index

54.5

45.8

64.3

36.7

41.7

63.6

21.9 ↑

ExpandNew Orders Index

59.1

37.5

57.1

50.0

50.0

70.8

20.8 ↑

ExpandExport Orders Index

62.5

50.0

68.8

62.5

57.1

70.0

12.9 ↑

ExpandExisting Orders Index

45.5

50.0

50.0

50.0

46.2

66.7

20.5 ↑

ExpandInventory Index of Finished Products

40.9

45.8

32.1

42.9

38.5

41.7

3.2 ↑

Contract

Purchase Quantity Index

27.3

33.3

53.8

42.3

45.8

63.6

17.8 ↑

ExpandPurchase Price Index

59.1

45.8

50.0

42.9

61.5

54.2

-7.3 ↓

ExpandInventory Index of Main Raw Materials

50.0

45.8

46.4

46.4

26.9

41.7

14.8 ↑

Contract

Employees Index

36.4

54.2

50.0

50.0

46.2

50.0

3.8 ↑

StableDelivery Time Index

40.9

50.0

46.4

39.3

38.5

54.2

15.7 ↑

Expand0
Jan-2024

Feb-2024

Mar-2024

Apr-2024

May-2024

Jun-2024

In June, the GTI-Thailand index registered 59.5%, an increase of 16.4 percentage
points from the previous month, rose above the critical value (50%) after twomonths, indicating that the business prosperity of the superior timber enterprises
represented by the GTI-Thailand index expanded from last month. In Thailand thismonth, timber harvesting, production, and sales had all shown a significant
increase compared to the previous month. As a result, a continuous rise in theprices of raw materials was observed, and some enterprises reported a generalrise in the prices of commonly used raw materials.

Thailand's exports in May 2024 reached US$26.219 billion, marking a 14-monthhigh and representing a year-on-year growth of 7.2%, according to data releasedby the country’s Ministry of Commerce. The data also showed that exports ofwood and wood products increased by 16.7% (YoY). During the same period, theaverage price for the lumber exported from Thailand gained 4% compared to theprevious month. Currently, the Thai government is preparing a series of tax
incentives to promote a low-carbon economy and encourage green investments,
as announced by Finance Minister Pichai Chunhavajira. Specifically, the new tax
incentives will be implemented in three stages: short-term measures like tax
deductions for solar cell installations; medium-term measures like tax
incentives for businesses to calculate their carbon footprints; and long-term
measures, such as a carbon tax for excessive greenhouse gas emission. In June,
the price of diesel in Thailand rose to 32.94 baht per liter, almost touching thecap set by the government (33 baht). The high price had prompted the Land
Transport Federation of Thailand to demand a direct increase of 9% in the current
transport fees to offset the additional costs, in response to which industry
insiders said that the final costs would be passed on to consumers, triggering a
new round of price hikes for them.

As for the 11 sub-indexes, the indexes for harvesting, production, new orders,
export orders, existing orders, purchase quantity, purchase price, and delivery
time were all above the critical value of 50%; the index for employees was at thecritical value; and the indexes for inventory of finished products and inventory ofmain raw materials were below the critical value. Compared to the previous
month, the index for purchase price declined by 7.3 percentage points, while theremaining 10 indexes increased by 3.2-21.9 percentage points.

08

Main Challenges Reported by
GTI-Thailand Enterprises

Main Suggestions from
GTI-Thailand Enterprises• Many workers resigned.

• Hope the government could reduce the tax burden on businesses.

• The prices of wood increased.

• Adjustment in national timber policy is needed.

• There as a lack of skilled carpenters.

• Try to find more reliable raw material distributors.

• Customers had decreased purchasing power.

• Need assistance to the sector by the government.

• Economic conditions were not very sound.

• Need to hire foreign workers, as Thai workers change jobs frequently.

• There were problems with controlling wood humidity due to the rainy season.

• Raise consumer awareness of the importance of using wood and wood products
for the protection of the global environment.

• The popularity of using wood products was not enough.
• Expenses increased and income decreased.
• It was difficult to find raw materials for producing products.
• The rising trend of raw material prices was more obvious, especially forcommonly used materials.

09

GGSC-No. 06/2024

GTI-Thailand Report

GTI Report 2024

GTI-Thailand Index in June 2024

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

GTI-Thailand Comprehensive Index
80
60

49.8

45.6

59.5

54.8

44.7

43.1

40
20

2024.012024.022024.032024.04

2024.052024.06

MoM

Performance

Comprehensive Index

49.8

45.6

54.8

44.7

43.1

59.5

16.4 ↑

ExpandHarvesting Index

64.3

41.7

65.0

33.3

37.5

56.3

18.8 ↑

ExpandProduction Index

54.5

45.8

64.3

36.7

41.7

63.6

21.9 ↑

ExpandNew Orders Index

59.1

37.5

57.1

50.0

50.0

70.8

20.8 ↑

ExpandExport Orders Index

62.5

50.0

68.8

62.5

57.1

70.0

12.9 ↑

ExpandExisting Orders Index

45.5

50.0

50.0

50.0

46.2

66.7

20.5 ↑

ExpandInventory Index of Finished Products

40.9

45.8

32.1

42.9

38.5

41.7

3.2 ↑

Contract

Purchase Quantity Index

27.3

33.3

53.8

42.3

45.8

63.6

17.8 ↑

ExpandPurchase Price Index

59.1

45.8

50.0

42.9

61.5

54.2

-7.3 ↓

ExpandInventory Index of Main Raw Materials

50.0

45.8

46.4

46.4

26.9

41.7

14.8 ↑

Contract

Employees Index

36.4

54.2

50.0

50.0

46.2

50.0

3.8 ↑

StableDelivery Time Index

40.9

50.0

46.4

39.3

38.5

54.2

15.7 ↑

Expand0
Jan-2024

Feb-2024

Mar-2024

Apr-2024

May-2024

Jun-2024

In June, the GTI-Thailand index registered 59.5%, an increase of 16.4 percentage
points from the previous month, rose above the critical value (50%) after twomonths, indicating that the business prosperity of the superior timber enterprises
represented by the GTI-Thailand index expanded from last month. In Thailand thismonth, timber harvesting, production, and sales had all shown a significant
increase compared to the previous month. As a result, a continuous rise in theprices of raw materials was observed, and some enterprises reported a generalrise in the prices of commonly used raw materials.

Thailand's exports in May 2024 reached US$26.219 billion, marking a 14-monthhigh and representing a year-on-year growth of 7.2%, according to data releasedby the country’s Ministry of Commerce. The data also showed that exports ofwood and wood products increased by 16.7% (YoY). During the same period, theaverage price for the lumber exported from Thailand gained 4% compared to theprevious month. Currently, the Thai government is preparing a series of tax
incentives to promote a low-carbon economy and encourage green investments,
as announced by Finance Minister Pichai Chunhavajira. Specifically, the new tax
incentives will be implemented in three stages: short-term measures like tax
deductions for solar cell installations; medium-term measures like tax
incentives for businesses to calculate their carbon footprints; and long-term
measures, such as a carbon tax for excessive greenhouse gas emission. In June,
the price of diesel in Thailand rose to 32.94 baht per liter, almost touching thecap set by the government (33 baht). The high price had prompted the Land
Transport Federation of Thailand to demand a direct increase of 9% in the current
transport fees to offset the additional costs, in response to which industry
insiders said that the final costs would be passed on to consumers, triggering a
new round of price hikes for them.

As for the 11 sub-indexes, the indexes for harvesting, production, new orders,
export orders, existing orders, purchase quantity, purchase price, and delivery
time were all above the critical value of 50%; the index for employees was at thecritical value; and the indexes for inventory of finished products and inventory ofmain raw materials were below the critical value. Compared to the previous
month, the index for purchase price declined by 7.3 percentage points, while theremaining 10 indexes increased by 3.2-21.9 percentage points.

08

Main Challenges Reported by
GTI-Thailand Enterprises

Main Suggestions from
GTI-Thailand Enterprises• Many workers resigned.

• Hope the government could reduce the tax burden on businesses.

• The prices of wood increased.

• Adjustment in national timber policy is needed.

• There as a lack of skilled carpenters.

• Try to find more reliable raw material distributors.

• Customers had decreased purchasing power.

• Need assistance to the sector by the government.

• Economic conditions were not very sound.

• Need to hire foreign workers, as Thai workers change jobs frequently.

• There were problems with controlling wood humidity due to the rainy season.

• Raise consumer awareness of the importance of using wood and wood products
for the protection of the global environment.

• The popularity of using wood products was not enough.
• Expenses increased and income decreased.
• It was difficult to find raw materials for producing products.
• The rising trend of raw material prices was more obvious, especially forcommonly used materials.

09

GGSC-No. 06/2024

GTI-Gabon Report

GTI Report 2024

GTI-Gabon Index in June 2024

Table: Overview of GTI-Gabon Sub-Indexes (%)
2024.012024.022024.032024.04

2024.052024.06

MoM

Performance

Comprehensive Index

31.4

43.5

31.9

38.4

37.2

41.2

4.0 ↑

Contract

Harvesting Index

35.7

37.5

28.6

42.5

50.0

50.0

0.0

StableProduction Index

29.4

50.0

26.7

43.8

37.5

34.6

-2.9 ↓

Contract

New Orders Index

28.3

50.0

37.0

33.3

33.3

36.7

3.4 ↑

Contract

Export Orders Index

28.1

45.5

27.8

30.0

34.6

27.3

-7.3 ↓

Contract

Existing Orders Index

32.6

42.3

30.4

33.3

36.7

33.3

-3.4 ↓

Contract

20

Inventory Index of Finished Products

37.0

38.5

45.7

35.7

43.3

60.0

16.7 ↑

Expand0

Purchase Quantity Index

39.3

33.3

39.3

42.9

43.8

50.0

6.2 ↑

StablePurchase Price Index

53.6

61.1

57.1

46.4

50.0

50.0

0.0

StableInventory Index of Main Raw Materials

50.0

38.9

33.3

46.4

50.0

55.0

5.0 ↑

ExpandEmployees Index

28.3

34.6

28.3

31.0

33.3

40.0

6.7 ↑

Contract

Delivery Time Index

32.6

34.6

34.4

44.1

40.9

53.6

12.7 ↑

ExpandGTI-Gabon Comprehensive Index
80
60
40

43.5

Jan-2024

38.4

31.9

31.4

Feb-2024

Mar-2024

Apr-2024

Recently, the Baie des Rois was officially granted the status of Special Investment Zone (ZIS),
making it the fourth ZIS in Gabon after Nkok, Ikolo, and Mpassa-Lebombi, and enabling bountiful
opportunities for employment and investment. On 25 June, a ministerial meeting in the country
announced a draft decree that set strict quotas for employing foreign labor, with a view to
reducing its local unemployment. For the purpose of protecting transportation infrastructure(especially aging bridges), the Ministry of Public Works plans to limit the axle load of vehicles
on highways, requiring that the axle load of all heavy trucks shall not exceed 13 tons. This isparticularly applicable to heavy vehicles on National Road 1 (Route Nationale 1, RN1) and logtransporters are particularly targeted. In recent years, the Chinese market has shown a growing
demand for wood from Gabon, and in the first five months of 2024, Gabon's total wood exports
to China reached 337,000 cubic meters, marking a year-on-year increase of 70%.

37.2

May-2024

41.2

Jun-2024

shrank from last month, however, the contraction eased. This month, timber harvestingremained stable in the country, but due to the lack of orders (especially the decline in export
orders), the inventory of finished products rose, and some enterprises reported a slowdown inthe markets of Asia and Europe, as a result, connecting with the demand side had become themost urgent issue.
As for the 11 sub-indexes, three indexes (inventory of finished products, inventory of main raw
materials, and delivery time) were above the critical value of 50%, another three indexes(harvesting, purchase quantity, and purchase price) were at the critical value, while theremaining 5 indexes were all below the critical value. Compared with the previous month, theindexes for new orders, inventory of finished products, purchase quantity, inventory of main raw
materials, employees, and delivery increased by 3.4-16.7 percentage points; the indexes for
harvesting and purchase price were unchanged from the previous month; and the indexes for
production, export orders, and existing orders declined by 2.9-7.3 percentage points.

In June, the GTI-Gabon index registered 41.2%, an increase of 4.0 percentage points from theprevious month, was below the critical value (50%) for 11 consecutive months, indicating thatthe business prosperity of the superior timber enterprises represented by the GTI-Gabon index

Brief on Gabonese Timber Industry
The Ministry of Water and Forests of Gabon has reinforced the vehicle fleet to assist forest rangers in carrying out tasks in the field. This reinforcement will help fight against illegal logging activities,
protect flora and fauna, and will also allow the Ministry of Water and Forests to better support companies towards certification.

Main Challenges Reported by
GTI-Gabon Enterprises

Main Suggestions from
GTI-Gabon Enterprises• Buyers completed the payments slowly.
• Some enterprises were burdened with overstocked logs.
• The number of orders from customers decreased.
• There was a lack of railway transportation tools.
• Some enterprises lacked industry information.
• Some enterprises felt hindered by the lack of OLB certification.
• Document processing by competent authorities was slow.
• Some enterprises saw a stagnation in the Asian market and aslowdown in the European market.
• The timber market had shrunk, coupled with decreased orders anddropping prices.

• Repair the roads.
• Banks offer a higher credit limit.
• Expand markets beyond Asia.
• Reduce production costs.
• Hope the government could increase support for forestry companies.
• Enhance communications between authorities and enterprises.

Information provided by GTI-Gabon Focal Point

1011

GGSC-No. 06/2024

GTI-Gabon Report

GTI Report 2024

GTI-Gabon Index in June 2024

Table: Overview of GTI-Gabon Sub-Indexes (%)
2024.012024.022024.032024.04

2024.052024.06

MoM

Performance

Comprehensive Index

31.4

43.5

31.9

38.4

37.2

41.2

4.0 ↑

Contract

Harvesting Index

35.7

37.5

28.6

42.5

50.0

50.0

0.0

StableProduction Index

29.4

50.0

26.7

43.8

37.5

34.6

-2.9 ↓

Contract

New Orders Index

28.3

50.0

37.0

33.3

33.3

36.7

3.4 ↑

Contract

Export Orders Index

28.1

45.5

27.8

30.0

34.6

27.3

-7.3 ↓

Contract

Existing Orders Index

32.6

42.3

30.4

33.3

36.7

33.3

-3.4 ↓

Contract

20

Inventory Index of Finished Products

37.0

38.5

45.7

35.7

43.3

60.0

16.7 ↑

Expand0

Purchase Quantity Index

39.3

33.3

39.3

42.9

43.8

50.0

6.2 ↑

StablePurchase Price Index

53.6

61.1

57.1

46.4

50.0

50.0

0.0

StableInventory Index of Main Raw Materials

50.0

38.9

33.3

46.4

50.0

55.0

5.0 ↑

ExpandEmployees Index

28.3

34.6

28.3

31.0

33.3

40.0

6.7 ↑

Contract

Delivery Time Index

32.6

34.6

34.4

44.1

40.9

53.6

12.7 ↑

ExpandGTI-Gabon Comprehensive Index
80
60
40

43.5

Jan-2024

38.4

31.9

31.4

Feb-2024

Mar-2024

Apr-2024

Recently, the Baie des Rois was officially granted the status of Special Investment Zone (ZIS),
making it the fourth ZIS in Gabon after Nkok, Ikolo, and Mpassa-Lebombi, and enabling bountiful
opportunities for employment and investment. On 25 June, a ministerial meeting in the country
announced a draft decree that set strict quotas for employing foreign labor, with a view to
reducing its local unemployment. For the purpose of protecting transportation infrastructure(especially aging bridges), the Ministry of Public Works plans to limit the axle load of vehicles
on highways, requiring that the axle load of all heavy trucks shall not exceed 13 tons. This isparticularly applicable to heavy vehicles on National Road 1 (Route Nationale 1, RN1) and logtransporters are particularly targeted. In recent years, the Chinese market has shown a growing
demand for wood from Gabon, and in the first five months of 2024, Gabon's total wood exports
to China reached 337,000 cubic meters, marking a year-on-year increase of 70%.

37.2

May-2024

41.2

Jun-2024

shrank from last month, however, the contraction eased. This month, timber harvestingremained stable in the country, but due to the lack of orders (especially the decline in export
orders), the inventory of finished products rose, and some enterprises reported a slowdown inthe markets of Asia and Europe, as a result, connecting with the demand side had become themost urgent issue.
As for the 11 sub-indexes, three indexes (inventory of finished products, inventory of main raw
materials, and delivery time) were above the critical value of 50%, another three indexes(harvesting, purchase quantity, and purchase price) were at the critical value, while theremaining 5 indexes were all below the critical value. Compared with the previous month, theindexes for new orders, inventory of finished products, purchase quantity, inventory of main raw
materials, employees, and delivery increased by 3.4-16.7 percentage points; the indexes for
harvesting and purchase price were unchanged from the previous month; and the indexes for
production, export orders, and existing orders declined by 2.9-7.3 percentage points.

In June, the GTI-Gabon index registered 41.2%, an increase of 4.0 percentage points from theprevious month, was below the critical value (50%) for 11 consecutive months, indicating thatthe business prosperity of the superior timber enterprises represented by the GTI-Gabon index

Brief on Gabonese Timber Industry
The Ministry of Water and Forests of Gabon has reinforced the vehicle fleet to assist forest rangers in carrying out tasks in the field. This reinforcement will help fight against illegal logging activities,
protect flora and fauna, and will also allow the Ministry of Water and Forests to better support companies towards certification.

Main Challenges Reported by
GTI-Gabon Enterprises

Main Suggestions from
GTI-Gabon Enterprises• Buyers completed the payments slowly.
• Some enterprises were burdened with overstocked logs.
• The number of orders from customers decreased.
• There was a lack of railway transportation tools.
• Some enterprises lacked industry information.
• Some enterprises felt hindered by the lack of OLB certification.
• Document processing by competent authorities was slow.
• Some enterprises saw a stagnation in the Asian market and aslowdown in the European market.
• The timber market had shrunk, coupled with decreased orders anddropping prices.

• Repair the roads.
• Banks offer a higher credit limit.
• Expand markets beyond Asia.
• Reduce production costs.
• Hope the government could increase support for forestry companies.
• Enhance communications between authorities and enterprises.

Information provided by GTI-Gabon Focal Point

1011

GGSC-No. 06/2024

GTI-ROC Report

GTI Report 2024

GTI-ROC Index in June 2024

Table: Overview of GTI-ROC Sub-Indexes (%)
2024.012024.022024.032024.04

2024.052024.06

MoM

Performance

Comprehensive Index

34.7

35.5

44.1

41.6

40.7

43.2

2.5 ↑

Contract

Harvesting Index

46.7

39.5

40.4

40.0

40.6

50.0

9.4 ↑

StableProduction Index

40.0

42.1

44.6

41.7

39.3

50.0

10.7 ↑

StableNew Orders Index

35.3

32.0

33.9

42.0

34.1

47.6

13.5 ↑

Contract

Export Orders Index

33.3

44.7

50.0

47.7

43.3

50.0

6.7 ↑

StableExisting Orders Index

32.4

34.0

33.9

40.0

38.6

47.6

9.0 ↑

Contract

Inventory Index of Finished Products

41.2

40.0

33.9

42.0

40.9

45.2

4.3 ↑

Contract

Purchase Quantity Index

33.3

50.0

50.0

50.0

40.0

66.7

26.7 ↑

ExpandPurchase Price Index

45.8

50.0

50.0

40.0

50.0

50.0

0.0

StableInventory Index of Main Raw Materials

50.0

40.0

50.0

50.0

40.0

25.0

-15.0 ↓

Contract

Employees Index

32.4

36.0

37.5

34.0

38.6

38.1

-0.5 ↓

Contract

Delivery Time Index

17.6

28.0

41.7

21.9

42.3

50.0

7.7 ↑

StableGTI-ROC Comprehensive Index
80
60
40

34.7

35.5

41.6

44.1

40.7

43.2

20
0
Jan-2024

Feb-2024

Mar-2024

Apr-2024

The government of the Republic of the Congo (ROC) predicted that the national
GDP would expand by 5.3% in 2024, largely driven by an increase in oil production(+5.9%) and the recovery of non-oil sectors (+5%), according to a report byCentral African Information Agency (ADIAC). Recently, the country has been
updating the data in its Nationally Determined Contributions (NDCs) Report 2023
to reflect progress towards the sustainable development goals, and at a meeting
held in Brazzaville on 7 June, experts from the government, civil society, andpartners reviewed the report that covered three categories of priority indicatorsfor sustainable development, namely, sustainable economic growth,
infrastructure and innovation, and urban resilience. In the first five months of2024, wood exports from ROC to China totalled 185,000 cubic meters, down 33%
year-on-year, and industry insiders said this change was related to factors suchas the rainy season that previously affected harvesting and the price fluctuationsin the international wood market, and it also revealed the uncertainty andcomplexity of the wood export market.

May-2024

Jun-2024

months, indicating that the business prosperity of the superior timber enterprises
represented by the GTI-ROC index shrank from last month, however, thecontraction slightly eased. This month, both harvesting and production was
relatively stable in ROC, and despite a slight contraction in domestic market, thevolume of orders from the international market was on par with that of theprevious month.
As for the 11 sub-indexes, only the purchase quantity index was above the criticalvalue of 50%, while the indexes for harvesting, production, export orders,purchase price, and delivery time were at the critical value, and the indexes for
new orders, existing orders, inventory of finished products, inventory of main raw
materials, and employees were all below the critical value. Compared with theprevious month, eight indexes (harvesting, production, new orders, export orders,
existing orders, inventory of finished products, purchase quantity, and deliverytime) increased by 4.3-26.7 percentage points; one index (purchase price) was
unchanged from the previous month; and two indexes (inventory of main raw
materials, and employees) declined by 0.5-15.0 percentage point(s).

In June, the GTI-ROC index registered 43.2%, an increase of 2.5 percentage points
from the previous month, was below the critical value (50%) for 20 consecutive

12

Main Challenges Reported by
GTI-ROC Enterprises

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

• Improve the timber market.

• Some enterprises faced cash flow problems.

• Ensure fuel supply.

• Fuel supply was insufficient.

• Adjust operations according to the weather.

• Heavy rains had restricted production and operations.

• Repair roads and bridges to ensure logistics.

13

GGSC-No. 06/2024

GTI-ROC Report

GTI Report 2024

GTI-ROC Index in June 2024

Table: Overview of GTI-ROC Sub-Indexes (%)
2024.012024.022024.032024.04

2024.052024.06

MoM

Performance

Comprehensive Index

34.7

35.5

44.1

41.6

40.7

43.2

2.5 ↑

Contract

Harvesting Index

46.7

39.5

40.4

40.0

40.6

50.0

9.4 ↑

StableProduction Index

40.0

42.1

44.6

41.7

39.3

50.0

10.7 ↑

StableNew Orders Index

35.3

32.0

33.9

42.0

34.1

47.6

13.5 ↑

Contract

Export Orders Index

33.3

44.7

50.0

47.7

43.3

50.0

6.7 ↑

StableExisting Orders Index

32.4

34.0

33.9

40.0

38.6

47.6

9.0 ↑

Contract

Inventory Index of Finished Products

41.2

40.0

33.9

42.0

40.9

45.2

4.3 ↑

Contract

Purchase Quantity Index

33.3

50.0

50.0

50.0

40.0

66.7

26.7 ↑

ExpandPurchase Price Index

45.8

50.0

50.0

40.0

50.0

50.0

0.0

StableInventory Index of Main Raw Materials

50.0

40.0

50.0

50.0

40.0

25.0

-15.0 ↓

Contract

Employees Index

32.4

36.0

37.5

34.0

38.6

38.1

-0.5 ↓

Contract

Delivery Time Index

17.6

28.0

41.7

21.9

42.3

50.0

7.7 ↑

StableGTI-ROC Comprehensive Index
80
60
40

34.7

35.5

41.6

44.1

40.7

43.2

20
0
Jan-2024

Feb-2024

Mar-2024

Apr-2024

The government of the Republic of the Congo (ROC) predicted that the national
GDP would expand by 5.3% in 2024, largely driven by an increase in oil production(+5.9%) and the recovery of non-oil sectors (+5%), according to a report byCentral African Information Agency (ADIAC). Recently, the country has been
updating the data in its Nationally Determined Contributions (NDCs) Report 2023
to reflect progress towards the sustainable development goals, and at a meeting
held in Brazzaville on 7 June, experts from the government, civil society, andpartners reviewed the report that covered three categories of priority indicatorsfor sustainable development, namely, sustainable economic growth,
infrastructure and innovation, and urban resilience. In the first five months of2024, wood exports from ROC to China totalled 185,000 cubic meters, down 33%
year-on-year, and industry insiders said this change was related to factors suchas the rainy season that previously affected harvesting and the price fluctuationsin the international wood market, and it also revealed the uncertainty andcomplexity of the wood export market.

May-2024

Jun-2024

months, indicating that the business prosperity of the superior timber enterprises
represented by the GTI-ROC index shrank from last month, however, thecontraction slightly eased. This month, both harvesting and production was
relatively stable in ROC, and despite a slight contraction in domestic market, thevolume of orders from the international market was on par with that of theprevious month.
As for the 11 sub-indexes, only the purchase quantity index was above the criticalvalue of 50%, while the indexes for harvesting, production, export orders,purchase price, and delivery time were at the critical value, and the indexes for
new orders, existing orders, inventory of finished products, inventory of main raw
materials, and employees were all below the critical value. Compared with theprevious month, eight indexes (harvesting, production, new orders, export orders,
existing orders, inventory of finished products, purchase quantity, and deliverytime) increased by 4.3-26.7 percentage points; one index (purchase price) was
unchanged from the previous month; and two indexes (inventory of main raw
materials, and employees) declined by 0.5-15.0 percentage point(s).

In June, the GTI-ROC index registered 43.2%, an increase of 2.5 percentage points
from the previous month, was below the critical value (50%) for 20 consecutive

12

Main Challenges Reported by
GTI-ROC Enterprises

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

• Improve the timber market.

• Some enterprises faced cash flow problems.

• Ensure fuel supply.

• Fuel supply was insufficient.

• Adjust operations according to the weather.

• Heavy rains had restricted production and operations.

• Repair roads and bridges to ensure logistics.

13

GGSC-No. 06/2024

GTI-Brazil Report

GTI Report 2024

GTI-Brazil Index in June 2024

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

GTI-Brazil Comprehensive Index
60.0

47.2

54.4

49.3

46.5

39.6
37.9

40.0
20.0
0.0
Jan-2023

Feb-2024

Mar-2024

Apr-2024

May-2024

Jun-2024

index shrank from last month, however, the contraction eased. This month, the productionof the superior timber enterprises represented by the GTI-Brazil index had recovered, theharvesting volume continued its downward trend, and on the demand side, the performanceof exports was relatively stable when compare to the previous month, however due to a
decline in domestic timber trading, the total volume of orders had decreased.

In May, Brazil's wood-based products (excluding pulp and paper) reached US$337 million, up
2.7% year-on-year, of which tropical plywood exports and wooden furniture exports grew by
11% and 5%, respectively, while tropical sawnwood exports fell by 36%. On 31 May,
Brazilian Congress approved a new law whereby Environmental Impact Study (EIA) and therespective Environmental Impact Report (RIMA) are no longer required for the issuance ofsilviculture project’s environmental permit, while in practical terms, EIA/RIMA used to be acostly and time-consuming step in the environmental licensing process. Recently, Microsoft
signed an agreement with BTG Pactual Timberland Investment Group which is a timberland
manager to purchase 8 million tons of carbon removal credits, for the purpose of converting
farmland and pastures in Brazil's Cerrado Savanna into forests, and according to Data fromMSCI Carbon Markets, it marks the largest known carbon dioxide removal credit transaction.

As for the eleven sub-indexes, only the production index was above the critical value of 50%,
while the indexes for export orders and employees were at the critical value, and theremaining eight indexes (harvesting, new orders, existing orders, inventory of finishedproducts, purchase quantity, purchase price, inventory of main raw materials, and deliverytime) were all below the critical value. Compared with the previous month, six indexes(production, new orders, existing orders, inventory of finished products, inventory of main
raw materials, and delivery time) increased by 0.4-18.6 percentage point(s); two indexes(harvesting, and export orders) were unchanged from the previous month; and three indexes(purchase quantity, purchase price, and employees) declined by 0.4-3.6 percentage point(s).

In June, the GTI-Brazil index registered 46.5%, an increase of 8.6 percentage points from theprevious month, was below the critical value (50%) for 3 consecutive months, indicating thatthe business prosperity of the superior timber enterprises represented by the GTI-Brazil

Brief on Brazilian Timber Industry• The forestry sector in the state of Rio Grande do Sul is still facing difficulties inreconstructing itself in the market. The eucalyptus log market is weak due to low supply
and demand, which is also due to low eucalyptus planting in the region and the floods thathave harmed the sector.
• The Brazilian eucalyptus sawnwood market had an increase in supply over the past few
months (since the beginning of the year), due to a reduction in demand, but this did notlead to a reduction in prices.

• Currently, the plywood market in the Southern region, particularly in the state of
Paraná, has decreased compared to the post-pandemic period, but there is a positive
prospect for growth in the coming months. Moreover, the forest residues (biomass) market
remains stable.
• The outlook is for increased demand for Eucalyptus logs for civil construction, due tothe floods in the state of Rio Grande do Sul, in the Southern region of Brazil. The reduction
in exports has increased the supply of logs in the domestic market, leading to a saturated
market and prices in general have decreased.

2024.012024.022024.032024.04

2024.052024.06

MoM

Performance

Comprehensive Index

47.2

39.6

54.4

49.3

37.9

46.5

8.6 ↑

Contract

Harvesting Index

42.3

33.3

56.3

42.3

36.4

36.4

0.0

Contract

Production Index

43.3

46.2

50.0

53.3

38.5

57.1

18.6 ↑

ExpandNew Orders Index

56.3

42.9

72.7

52.9

28.6

43.3

14.7 ↑

Contract

Export Orders Index

71.4

54.2

70.0

70.0

50.0

50.0

0.0

StableExisting Orders Index

43.8

25.0

50.0

20.6

25.0

30.0

5.0 ↑

Contract

Inventory Index of Finished Products

50.0

32.1

31.8

38.2

25.0

36.7

11.7 ↑

Contract

Purchase Quantity Index

38.5

25.0

71.4

30.0

27.3

26.9

-0.4 ↓

Contract

Purchase Price Index

46.4

38.5

50.0

40.0

40.9

38.5

-2.4 ↓

Contract

Inventory Index of Main Raw Materials

25.0

25.0

27.8

23.3

20.8

23.1

2.3 ↑

Contract

Employees Index

50.0

57.1

54.5

58.8

53.6

50.0

-3.6 ↓

StableDelivery Time Index

46.9

50.0

42.9

40.0

45.8

46.2

0.4 ↑

Contract

Main Challenges Reported by
GTI-Brazil Enterprises

Main Suggestions from
GTI-Brazil Enterprises• Turnover of employees was high.
• The weather (a lot of rain) had an impact on field operations.
• The imminence of a general strike by IBAMA (Brazilian Institute for the Environment andRenewable Natural Resources) at the ports had an impact on the shipment for export.
• As far as export products are concerned, the market was practically at a standstill, while
domestic products had suffered as a result of wood being replaced by other products
such as iron, aluminum and PVC.
• Problems such as low price, sluggish market, delay in the release of LPCOs (License,
Permit, Certificate, or Other Necessary Documents) existed.
• Excessive rainfall had reduced the entry of raw materials into the factory and delayeddeliveries. The port situation, with limited berth windows for container to enter theterminal, had caused significant costs.
• There was a lack of market recognition of new hardwood species such as Australian cedar(Toona Ciliata) and African mahogany (Khaya Grandifoliola).
• There was a lack of machines for harvesting. International freight rates for teakincreased. There was a lack of regularity in log transportation to the industry, with noincrease in transport flow despite an increase in production.

• Set up operational schedule according to the seasonal climate.
• Seek alternatives with clients in order to minimize logistics costs.
• The Federal Government should meet civil servants' demands to end the strike.
• Invest in and expand new ports and backport areas to meet the growth in exports.
• Increase market recognition of new hardwood species like Australian cedar (Toona
Ciliata) and African mahogany (Khaya Grandifoliola).
• Hire professional consultants. Return operations to freight forwarders with freight rates
more in line with positive operating margins. Improve logistics supply planning.

Information provided by GTI-Brazil Focal Point

14

15

GGSC-No. 06/2024

GTI-Brazil Report

GTI Report 2024

GTI-Brazil Index in June 2024

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

GTI-Brazil Comprehensive Index
60.0

47.2

54.4

49.3

46.5

39.6
37.9

40.0
20.0
0.0
Jan-2023

Feb-2024

Mar-2024

Apr-2024

May-2024

Jun-2024

index shrank from last month, however, the contraction eased. This month, the productionof the superior timber enterprises represented by the GTI-Brazil index had recovered, theharvesting volume continued its downward trend, and on the demand side, the performanceof exports was relatively stable when compare to the previous month, however due to a
decline in domestic timber trading, the total volume of orders had decreased.

In May, Brazil's wood-based products (excluding pulp and paper) reached US$337 million, up
2.7% year-on-year, of which tropical plywood exports and wooden furniture exports grew by
11% and 5%, respectively, while tropical sawnwood exports fell by 36%. On 31 May,
Brazilian Congress approved a new law whereby Environmental Impact Study (EIA) and therespective Environmental Impact Report (RIMA) are no longer required for the issuance ofsilviculture project’s environmental permit, while in practical terms, EIA/RIMA used to be acostly and time-consuming step in the environmental licensing process. Recently, Microsoft
signed an agreement with BTG Pactual Timberland Investment Group which is a timberland
manager to purchase 8 million tons of carbon removal credits, for the purpose of converting
farmland and pastures in Brazil's Cerrado Savanna into forests, and according to Data fromMSCI Carbon Markets, it marks the largest known carbon dioxide removal credit transaction.

As for the eleven sub-indexes, only the production index was above the critical value of 50%,
while the indexes for export orders and employees were at the critical value, and theremaining eight indexes (harvesting, new orders, existing orders, inventory of finishedproducts, purchase quantity, purchase price, inventory of main raw materials, and deliverytime) were all below the critical value. Compared with the previous month, six indexes(production, new orders, existing orders, inventory of finished products, inventory of main
raw materials, and delivery time) increased by 0.4-18.6 percentage point(s); two indexes(harvesting, and export orders) were unchanged from the previous month; and three indexes(purchase quantity, purchase price, and employees) declined by 0.4-3.6 percentage point(s).

In June, the GTI-Brazil index registered 46.5%, an increase of 8.6 percentage points from theprevious month, was below the critical value (50%) for 3 consecutive months, indicating thatthe business prosperity of the superior timber enterprises represented by the GTI-Brazil

Brief on Brazilian Timber Industry• The forestry sector in the state of Rio Grande do Sul is still facing difficulties inreconstructing itself in the market. The eucalyptus log market is weak due to low supply
and demand, which is also due to low eucalyptus planting in the region and the floods thathave harmed the sector.
• The Brazilian eucalyptus sawnwood market had an increase in supply over the past few
months (since the beginning of the year), due to a reduction in demand, but this did notlead to a reduction in prices.

• Currently, the plywood market in the Southern region, particularly in the state of
Paraná, has decreased compared to the post-pandemic period, but there is a positive
prospect for growth in the coming months. Moreover, the forest residues (biomass) market
remains stable.
• The outlook is for increased demand for Eucalyptus logs for civil construction, due tothe floods in the state of Rio Grande do Sul, in the Southern region of Brazil. The reduction
in exports has increased the supply of logs in the domestic market, leading to a saturated
market and prices in general have decreased.

2024.012024.022024.032024.04

2024.052024.06

MoM

Performance

Comprehensive Index

47.2

39.6

54.4

49.3

37.9

46.5

8.6 ↑

Contract

Harvesting Index

42.3

33.3

56.3

42.3

36.4

36.4

0.0

Contract

Production Index

43.3

46.2

50.0

53.3

38.5

57.1

18.6 ↑

ExpandNew Orders Index

56.3

42.9

72.7

52.9

28.6

43.3

14.7 ↑

Contract

Export Orders Index

71.4

54.2

70.0

70.0

50.0

50.0

0.0

StableExisting Orders Index

43.8

25.0

50.0

20.6

25.0

30.0

5.0 ↑

Contract

Inventory Index of Finished Products

50.0

32.1

31.8

38.2

25.0

36.7

11.7 ↑

Contract

Purchase Quantity Index

38.5

25.0

71.4

30.0

27.3

26.9

-0.4 ↓

Contract

Purchase Price Index

46.4

38.5

50.0

40.0

40.9

38.5

-2.4 ↓

Contract

Inventory Index of Main Raw Materials

25.0

25.0

27.8

23.3

20.8

23.1

2.3 ↑

Contract

Employees Index

50.0

57.1

54.5

58.8

53.6

50.0

-3.6 ↓

StableDelivery Time Index

46.9

50.0

42.9

40.0

45.8

46.2

0.4 ↑

Contract

Main Challenges Reported by
GTI-Brazil Enterprises

Main Suggestions from
GTI-Brazil Enterprises• Turnover of employees was high.
• The weather (a lot of rain) had an impact on field operations.
• The imminence of a general strike by IBAMA (Brazilian Institute for the Environment andRenewable Natural Resources) at the ports had an impact on the shipment for export.
• As far as export products are concerned, the market was practically at a standstill, while
domestic products had suffered as a result of wood being replaced by other products
such as iron, aluminum and PVC.
• Problems such as low price, sluggish market, delay in the release of LPCOs (License,
Permit, Certificate, or Other Necessary Documents) existed.
• Excessive rainfall had reduced the entry of raw materials into the factory and delayeddeliveries. The port situation, with limited berth windows for container to enter theterminal, had caused significant costs.
• There was a lack of market recognition of new hardwood species such as Australian cedar(Toona Ciliata) and African mahogany (Khaya Grandifoliola).
• There was a lack of machines for harvesting. International freight rates for teakincreased. There was a lack of regularity in log transportation to the industry, with noincrease in transport flow despite an increase in production.

• Set up operational schedule according to the seasonal climate.
• Seek alternatives with clients in order to minimize logistics costs.
• The Federal Government should meet civil servants' demands to end the strike.
• Invest in and expand new ports and backport areas to meet the growth in exports.
• Increase market recognition of new hardwood species like Australian cedar (Toona
Ciliata) and African mahogany (Khaya Grandifoliola).
• Hire professional consultants. Return operations to freight forwarders with freight rates
more in line with positive operating margins. Improve logistics supply planning.

Information provided by GTI-Brazil Focal Point

14

15

GGSC-No. 06/2024

GTI-Mexico Report

GTI Report 2024

GTI-Mexico Index in June 2024

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

GTI-Mexico Comprehensive Index

2024.012024.022024.032024.04

2024.052024.06

MoM

Performance

Comprehensive Index

32.4

35.2

40.3

42.0

42.5

47.2

4.7 ↑

Contract

Harvesting Index

29.3

33.3

42.6

40.7

44.2

43.2

-1.0 ↓

Contract

Production Index

24.0

36.4

40.0

36.4

38.6

44.1

5.5 ↑

Contract

New Orders Index

31.0

31.5

33.3

44.4

38.5

52.3

13.8 ↑

ExpandExport Orders Index

30.0

10.0

25.0

20.0

33.3

30.0

-3.3 ↓

Contract

Existing Orders Index

29.3

29.6

37.0

33.3

38.5

43.2

4.7 ↑

Contract

Inventory Index of Finished Products

37.9

37.0

46.3

42.6

44.2

50.0

5.8 ↑

StablePurchase Quantity Index

26.3

37.5

42.9

41.7

36.1

43.3

7.2 ↑

Contract

Purchase Price Index

47.6

50.0

47.7

55.3

50.0

50.0

0.0

StableInventory Index of Main Raw Materials

31.0

34.2

50.0

42.5

44.4

43.3

-1.1 ↓

Contract

Employees Index

36.2

31.5

44.4

38.9

48.1

50.0

1.9 ↑

StableDelivery Time Index

44.8

46.2

42.6

50.0

48.1

40.9

-7.2 ↓

Contract

80
60
40

32.4

35.2

42.0

40.3

42.5

47.2

20
0
Jan-2024

Feb-2024

Mar-2024

Apr-2024

In May, Mexico's exports reached US$55.671 billion and imports stood at
US$53.680 billion, representing a year-on-year increase of 5.4% and 1.4%,
respectively. The trade surplus recorded US$1.991 billion, compared to a trade
deficit of US$99 million in the same period of 2023. From January to May, foreign
direct investment (FDI) into Mexico totaled US$38.2 billion, representing a 35%
increase compared to the same period in 2023. Currently for the country, China
has become the fourth largest FDI source, covering a wide range of sectors suchas building materials, furniture, raw materials, among others. In June, Claudia
Sheinbaum was elected as the new President of Mexico. She announced that the
new government will develop 10 additional Well-Being Development Hubs acrossthe country, and according to her plans, these hubs will be integrated with 10 new
industrial corridors, among which the Gulf Corridor (covering Veracruz, Tabasco,
Chiapas, and Campeche) will prioritize industries such as timber.

May-2024

Jun-2024

timber enterprises represented by the GTI-Mexico index shrank from last month,
however, the contraction eased. This month, the GTI-Mexico sample enterprises
had significantly enhanced their ability to secure orders, mainly driven by
domestic market demand, while the volume of orders from the international
market continued to decline.
As for the 11 sub-indexes, the new orders index was above the critical value of
50%, the indexes for inventory of finished products, purchase price, andemployees were at the critical value, while the remaining 7 indexes (harvesting,production, export orders, existing orders, purchase quantity, inventory of main
raw materials, and delivery time) were all below the critical value. Compared withthe previous month, the indexes for production, new orders, existing orders,inventory of finished products, purchase quantity, and employees increased by
1.9-13.8 percentage points; the purchase price index was unchanged from theprevious month; and the indexes for harvesting, export orders, inventory of main
raw materials, and delivery time declined by 1.0-7.2 percentage point(s).

In June, the GTI-Mexico index registered 47.2%, an increase of 4.7 percentage
points from the previous month, was below the critical value (50%) for 20
consecutive months, indicating that the business prosperity of the superior

16

17

GGSC-No. 06/2024

GTI-Mexico Report

GTI Report 2024

GTI-Mexico Index in June 2024

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

GTI-Mexico Comprehensive Index

2024.012024.022024.032024.04

2024.052024.06

MoM

Performance

Comprehensive Index

32.4

35.2

40.3

42.0

42.5

47.2

4.7 ↑

Contract

Harvesting Index

29.3

33.3

42.6

40.7

44.2

43.2

-1.0 ↓

Contract

Production Index

24.0

36.4

40.0

36.4

38.6

44.1

5.5 ↑

Contract

New Orders Index

31.0

31.5

33.3

44.4

38.5

52.3

13.8 ↑

ExpandExport Orders Index

30.0

10.0

25.0

20.0

33.3

30.0

-3.3 ↓

Contract

Existing Orders Index

29.3

29.6

37.0

33.3

38.5

43.2

4.7 ↑

Contract

Inventory Index of Finished Products

37.9

37.0

46.3

42.6

44.2

50.0

5.8 ↑

StablePurchase Quantity Index

26.3

37.5

42.9

41.7

36.1

43.3

7.2 ↑

Contract

Purchase Price Index

47.6

50.0

47.7

55.3

50.0

50.0

0.0

StableInventory Index of Main Raw Materials

31.0

34.2

50.0

42.5

44.4

43.3

-1.1 ↓

Contract

Employees Index

36.2

31.5

44.4

38.9

48.1

50.0

1.9 ↑

StableDelivery Time Index

44.8

46.2

42.6

50.0

48.1

40.9

-7.2 ↓

Contract

80
60
40

32.4

35.2

42.0

40.3

42.5

47.2

20
0
Jan-2024

Feb-2024

Mar-2024

Apr-2024

In May, Mexico's exports reached US$55.671 billion and imports stood at
US$53.680 billion, representing a year-on-year increase of 5.4% and 1.4%,
respectively. The trade surplus recorded US$1.991 billion, compared to a trade
deficit of US$99 million in the same period of 2023. From January to May, foreign
direct investment (FDI) into Mexico totaled US$38.2 billion, representing a 35%
increase compared to the same period in 2023. Currently for the country, China
has become the fourth largest FDI source, covering a wide range of sectors suchas building materials, furniture, raw materials, among others. In June, Claudia
Sheinbaum was elected as the new President of Mexico. She announced that the
new government will develop 10 additional Well-Being Development Hubs acrossthe country, and according to her plans, these hubs will be integrated with 10 new
industrial corridors, among which the Gulf Corridor (covering Veracruz, Tabasco,
Chiapas, and Campeche) will prioritize industries such as timber.

May-2024

Jun-2024

timber enterprises represented by the GTI-Mexico index shrank from last month,
however, the contraction eased. This month, the GTI-Mexico sample enterprises
had significantly enhanced their ability to secure orders, mainly driven by
domestic market demand, while the volume of orders from the international
market continued to decline.
As for the 11 sub-indexes, the new orders index was above the critical value of
50%, the indexes for inventory of finished products, purchase price, andemployees were at the critical value, while the remaining 7 indexes (harvesting,production, export orders, existing orders, purchase quantity, inventory of main
raw materials, and delivery time) were all below the critical value. Compared withthe previous month, the indexes for production, new orders, existing orders,inventory of finished products, purchase quantity, and employees increased by
1.9-13.8 percentage points; the purchase price index was unchanged from theprevious month; and the indexes for harvesting, export orders, inventory of main
raw materials, and delivery time declined by 1.0-7.2 percentage point(s).

In June, the GTI-Mexico index registered 47.2%, an increase of 4.7 percentage
points from the previous month, was below the critical value (50%) for 20
consecutive months, indicating that the business prosperity of the superior

16

17

GGSC-No. 06/2024

GTI-Mexico Report

GTI Report 2024

Brief on Mexican Timber Industry
Timber market information presented in the following document was

Table 1. Roundwood prices (USD/m3) of common tropical species

Main Challenges Reported
by GTI-Mexico Enterprises

Main Suggestions from
GTI-Mexico Enterprises

obtained from questionnaires applied to Mexican forest producers of thePricing System for Forest Wood Products (abbreviated as SIPRE in Spanish).
The Pricing System for Forest Wood Products is the tool, by which, Mexico’s
National Forest Commission obtains referential prices of wood products andraw materials for temperate and tropical species at a national, regional andstate level.
In 2017, the National Forest Commission reported that common tropical
species contributed to 13.39 % of Mexico´s total timber production. The• There was excessive rainfall.

• Improve the forest roads.

• Wood prices were low.

• Lower production.

Long dimensional timberLong dimensional timber• Freight costs increased.

• Manage the maintenance of the electricity grid.

boards (first quality)boards (second quality)• There were problems with sawmilling equipment.

• Regulate the importation of wood products.

• The importation of wood products was uncontrolled.

• Enhance the competitiveness of domestic products.

Price given on

Price given at

Price given on

Price given at• Forestry procedures in reshipments was slow.

• Need fuel subsidies.

the forest paththe sawmill

the forest paththe sawmill• Problems with roads resulted in logistical delays.

• Increase investment for forestry equipment and machinery.

120.87n/d

22.58• There were problems with charging equipment as well as power
failure.

• Acquire raw materials from other properties.

120.87• There was a lack of demand for wood.

• Streamline forestry procedures or hire personnel to speed up
procedures.

main common tropical species used for timber production in Mexico are
Chechen (Metopium brownei), Jabin (Piscidia piscipula), Chakté (Caesalpinia• Request government assistance to improve the timber market.

• Phytosanitary export documents were processed extremely
slowly.

platyloba), Chaca (Bursera simaruba), Pucté (Terminalia buceras), Primavera(Roseodendron donnell-smithii), Zapote (Manilkara zapota). These species

Table 2. Sawn wood prices (USD) for common tropical species

are highly valued nationally and internationally for wood veneer and($/board foot)furniture production. Additionally, these species are also used to make floor• It's suggested that the government give priority to theconsumption of domestic products and introduce tariffs onimported wood.

• Trade competition was unfair, due to the entry of products fromabroad at low prices.
• The forest management program had not yet been approved.

boards and wood posts.
Long dimensional boards

Timber prices of common tropical species were obtained for roundwood andShort dimensional boards

sawn wood products through surveys applied to forest producers in the

Selected

Mil run

2.09

1.16

states of Campeche, Chiapas, Oaxaca, Tabasco, Quintana Roo and Veracruz.
The prices are as follows (for May 2024):

1.75

Information provided by GTI-Mexico Focal Point

18

19

GGSC-No. 06/2024

GTI-Mexico Report

GTI Report 2024

Brief on Mexican Timber Industry
Timber market information presented in the following document was

Table 1. Roundwood prices (USD/m3) of common tropical species

Main Challenges Reported
by GTI-Mexico Enterprises

Main Suggestions from
GTI-Mexico Enterprises

obtained from questionnaires applied to Mexican forest producers of thePricing System for Forest Wood Products (abbreviated as SIPRE in Spanish).
The Pricing System for Forest Wood Products is the tool, by which, Mexico’s
National Forest Commission obtains referential prices of wood products andraw materials for temperate and tropical species at a national, regional andstate level.
In 2017, the National Forest Commission reported that common tropical
species contributed to 13.39 % of Mexico´s total timber production. The• There was excessive rainfall.

• Improve the forest roads.

• Wood prices were low.

• Lower production.

Long dimensional timberLong dimensional timber• Freight costs increased.

• Manage the maintenance of the electricity grid.

boards (first quality)boards (second quality)• There were problems with sawmilling equipment.

• Regulate the importation of wood products.

• The importation of wood products was uncontrolled.

• Enhance the competitiveness of domestic products.

Price given on

Price given at

Price given on

Price given at• Forestry procedures in reshipments was slow.

• Need fuel subsidies.

the forest paththe sawmill

the forest paththe sawmill• Problems with roads resulted in logistical delays.

• Increase investment for forestry equipment and machinery.

120.87n/d

22.58• There were problems with charging equipment as well as power
failure.

• Acquire raw materials from other properties.

120.87• There was a lack of demand for wood.

• Streamline forestry procedures or hire personnel to speed up
procedures.

main common tropical species used for timber production in Mexico are
Chechen (Metopium brownei), Jabin (Piscidia piscipula), Chakté (Caesalpinia• Request government assistance to improve the timber market.

• Phytosanitary export documents were processed extremely
slowly.

platyloba), Chaca (Bursera simaruba), Pucté (Terminalia buceras), Primavera(Roseodendron donnell-smithii), Zapote (Manilkara zapota). These species

Table 2. Sawn wood prices (USD) for common tropical species

are highly valued nationally and internationally for wood veneer and($/board foot)furniture production. Additionally, these species are also used to make floor• It's suggested that the government give priority to theconsumption of domestic products and introduce tariffs onimported wood.

• Trade competition was unfair, due to the entry of products fromabroad at low prices.
• The forest management program had not yet been approved.

boards and wood posts.
Long dimensional boards

Timber prices of common tropical species were obtained for roundwood andShort dimensional boards

sawn wood products through surveys applied to forest producers in the

Selected

Mil run

2.09

1.16

states of Campeche, Chiapas, Oaxaca, Tabasco, Quintana Roo and Veracruz.
The prices are as follows (for May 2024):

1.75

Information provided by GTI-Mexico Focal Point

18

19

GGSC-No. 06/2024

GTI-China Report

GTI Report 2024

GTI-China Index in June 2024

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

GTI-China Comprehensive Index

66.8

80

52.3

60
40

34.1

42.2

46.7

31.7

20
0
Jan-2024

Feb-2024

Mar-2024

Apr-2024

On 5 June, China’s Ministry of Ecology and Environment and other 14 government
agencies jointly issued "Implementation Plan for Establishing a Carbon Footprint
Management System", which is the first time that multiple agencies have jointly
issued a document on carbon footprint management, indicating China will
establish a unified and standardized carbon footprint management system. Data
released by the General Administration of Customs showed that China's importsof logs and sawn timber stood at 5.99 million cubic meters in May 2024, a
year-on-year decrease of 6.45%. Specifically, log imports decreased by 4%, andsawn timber imports decreased by 9.82%. However, the exports of furniture andits parts maintained strong growth, with exports totaling CNY212.55 billion fromJanuary to May, a significant increase of 20.5% over the same period last year. As
the delivery of new houses in China shrank while the market volume forrenovating existing housing was gradually rising, Chinese home furnishingcompanies were seeking to seize the market for renovating old houses, and somecompanies were also shifting their focus to overseas markets such as Southeast
Asia.

May-20242024.012024.022024.032024.04

2024.052024.06

MoM

Performance

Comprehensive Index

34.1

31.7

66.8

52.3

42.2

46.7

4.5 ↑

Contract

Production Index

25.0

16.7

78.7

56.5

40.2

48.2

8.0 ↑

Contract

New Orders Index

28.1

20.9

76.5

51.9

35.4

44.6

9.2 ↑

Contract

Export Orders Index

37.5

39.3

56.9

48.3

39.7

50.0

10.3 ↑

StableExisting Orders Index

31.3

37.2

69.1

49.4

39.0

39.8

0.8 ↑

Contract

Inventory Index of Finished Products

46.9

41.9

60.3

51.9

53.7

54.8

1.1 ↑

ExpandPurchase Quantity Index

43.8

34.9

72.8

54.5

35.4

43.4

8.0 ↑

Contract

Purchase Price Index

53.1

58.1

55.9

58.3

48.8

49.4

0.6 ↑

Contract

Import Index

45.8

40.5

60.3

56.8

45.2

47.0

1.8 ↑

Contract

Inventory Index of Main Raw Materials

43.8

48.8

42.6

42.9

51.2

45.2

-6.0 ↓

Contract

Employees Index

37.5

45.3

59.6

51.3

46.3

45.8

-0.5 ↓

Contract

Delivery Time Index

50.0

48.8

53.7

53.9

47.6

50.6

3.0 ↑

ExpandJun-2024

months, indicating that the business prosperity of the superior timber enterprises
represented by the GTI-China index shrank from the previous month, however, thecontraction eased. Affected by the slowdown in effective demand and the sharp
rise in shipping costs, the inventory of finished products increased this month.
Besides, although both production and orders saw a decrease from the previous
month, the decline had narrowed.
As for the 11 sub-indexes, two indexes (inventory of finished products, anddelivery time) were above the critical value of 50%, one index (export orders) wasat the critical value, and the remaining 8 indexes were all below the critical value.
Compared to the previous month, the indexes for production, new orders, export
orders, existing orders, inventory of finished products, purchase quantity,purchase price, import, and delivery time increased by 0.8-10.3 percentage
point(s), while the indexes for inventory of main raw materials, and employees
declined by 0.5-6.0 percentage point(s).

Main Challenges Reported by
GTI-China Enterprises

Main Suggestions from
GTI-China Enterprises• Cash flow pressures existed.

• Broaden financing channels.

• The market demand was insufficient.

• Renew the loan to respond to the bank's withdrawal of loan.

• The volume of orders decreased.

• Enterprises need more information on market and export.

• There was a lack of management personnel.
• The recovery of funds was slow, and the products were difficult to sell.

In June, the GTI-China index registered 46.7%, an increase of 4.5 percentage
points from the previous month, was below the critical value (50%) for 2 consecutive

20

21

GGSC-No. 06/2024

GTI-China Report

GTI Report 2024

GTI-China Index in June 2024

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

GTI-China Comprehensive Index

66.8

80

52.3

60
40

34.1

42.2

46.7

31.7

20
0
Jan-2024

Feb-2024

Mar-2024

Apr-2024

On 5 June, China’s Ministry of Ecology and Environment and other 14 government
agencies jointly issued "Implementation Plan for Establishing a Carbon Footprint
Management System", which is the first time that multiple agencies have jointly
issued a document on carbon footprint management, indicating China will
establish a unified and standardized carbon footprint management system. Data
released by the General Administration of Customs showed that China's importsof logs and sawn timber stood at 5.99 million cubic meters in May 2024, a
year-on-year decrease of 6.45%. Specifically, log imports decreased by 4%, andsawn timber imports decreased by 9.82%. However, the exports of furniture andits parts maintained strong growth, with exports totaling CNY212.55 billion fromJanuary to May, a significant increase of 20.5% over the same period last year. As
the delivery of new houses in China shrank while the market volume forrenovating existing housing was gradually rising, Chinese home furnishingcompanies were seeking to seize the market for renovating old houses, and somecompanies were also shifting their focus to overseas markets such as Southeast
Asia.

May-20242024.012024.022024.032024.04

2024.052024.06

MoM

Performance

Comprehensive Index

34.1

31.7

66.8

52.3

42.2

46.7

4.5 ↑

Contract

Production Index

25.0

16.7

78.7

56.5

40.2

48.2

8.0 ↑

Contract

New Orders Index

28.1

20.9

76.5

51.9

35.4

44.6

9.2 ↑

Contract

Export Orders Index

37.5

39.3

56.9

48.3

39.7

50.0

10.3 ↑

StableExisting Orders Index

31.3

37.2

69.1

49.4

39.0

39.8

0.8 ↑

Contract

Inventory Index of Finished Products

46.9

41.9

60.3

51.9

53.7

54.8

1.1 ↑

ExpandPurchase Quantity Index

43.8

34.9

72.8

54.5

35.4

43.4

8.0 ↑

Contract

Purchase Price Index

53.1

58.1

55.9

58.3

48.8

49.4

0.6 ↑

Contract

Import Index

45.8

40.5

60.3

56.8

45.2

47.0

1.8 ↑

Contract

Inventory Index of Main Raw Materials

43.8

48.8

42.6

42.9

51.2

45.2

-6.0 ↓

Contract

Employees Index

37.5

45.3

59.6

51.3

46.3

45.8

-0.5 ↓

Contract

Delivery Time Index

50.0

48.8

53.7

53.9

47.6

50.6

3.0 ↑

ExpandJun-2024

months, indicating that the business prosperity of the superior timber enterprises
represented by the GTI-China index shrank from the previous month, however, thecontraction eased. Affected by the slowdown in effective demand and the sharp
rise in shipping costs, the inventory of finished products increased this month.
Besides, although both production and orders saw a decrease from the previous
month, the decline had narrowed.
As for the 11 sub-indexes, two indexes (inventory of finished products, anddelivery time) were above the critical value of 50%, one index (export orders) wasat the critical value, and the remaining 8 indexes were all below the critical value.
Compared to the previous month, the indexes for production, new orders, export
orders, existing orders, inventory of finished products, purchase quantity,purchase price, import, and delivery time increased by 0.8-10.3 percentage
point(s), while the indexes for inventory of main raw materials, and employees
declined by 0.5-6.0 percentage point(s).

Main Challenges Reported by
GTI-China Enterprises

Main Suggestions from
GTI-China Enterprises• Cash flow pressures existed.

• Broaden financing channels.

• The market demand was insufficient.

• Renew the loan to respond to the bank's withdrawal of loan.

• The volume of orders decreased.

• Enterprises need more information on market and export.

• There was a lack of management personnel.
• The recovery of funds was slow, and the products were difficult to sell.

In June, the GTI-China index registered 46.7%, an increase of 4.5 percentage
points from the previous month, was below the critical value (50%) for 2 consecutive

20

21

GGSC-No. 06/2024

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 8 countries, including Indonesia, Malaysia, Thailand,

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

Gabon, Congo, 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. 06/2024

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 8 countries, including Indonesia, Malaysia, Thailand,

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

Gabon, Congo, 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, Brazil,
Mexico and China.

GTIREPORT

GTI REPORT 2024
Global Timber Index

MONTHLY
GGSC-No. 06/2024

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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