Ὧ䈊㖞Ხ⋈䴆偹ᶢⲛ挅Ḩ妵

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

About ITTO

About GGSC

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

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

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

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

and diversification of international trade in tropical timber from

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

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

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

Chinese enterprises in forest products industry, GGSC became an

ITTO’s membership represents about 90% of the global tropical timberinternational initiative in 2019. Since then, GGSC has been acting as atrade and more than 80% of the world’s tropical forests.

global platform for serving the sustainable development of the forest

Mexico, and China. In 2022, the total production of woodbased

products industry.

panel in the nine countries mentioned above was 336 million

intergovernmentalorganization

promotingthe

MONTHLY
GGSC-No. 07/2024Ὧ䈊㖞Ხ⋈䴆偹ᶢⲛ挅Ḩ妵

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

cubic meters, accounting for

63.8% of the total global

production volume of woodbased panel.

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

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

Interpretation

but can help to understand the timber industry trend.

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

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

GTI-WBP index contains diffusion index and comprehensive index.

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

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

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

Contact Us
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

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

Survey Method

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

Index RepresentativenessThe pilot countries for the GTI-WBP index include Indonesia, Malaysia, Thailand, Gabon,
Republic of the Congo, Ghana, Brazil, Mexico and China. In 2022, the total production ofwoodbased panel in the nine countries mentioned above was 336 million cubic meters,
accounting for 63.8% of the total global production volume of woodbased panel.

GGSC-No. 07/2024

GGSC-No. 07/2024
GTI-Woodbased Panel (GTI-WBP) Report

GTI-Woodbased Panel (GTI-WBP) Report

GTI-Woodbased Panel Index in July 2024

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

May. 2024

Jun. 2024

Jul. 2024

MoM

Performance

Comprehensive Index

43.1

42.6

46.3

42.0

-4.3 ↓

Contract

Production Index

47.7

40.8

43.3

39.1

-4.2 ↓

Contract

New Orders Index

38.6

40.4

48.5

40.0

-8.5 ↓

Contract

Export Orders Index

43.0

44.9

50.0

44.9

-5.1 ↓

Contract

Existing Orders Index

37.1

44.1

44.0

45.6

1.6 ↑

Contract

Inventory Index of Finished Products

50.8

48.5

52.9

43.9

-9.0 ↓

Contract

Purchase Quantity Index

44.1

39.0

46.4

44.1

-2.3 ↓

Contract

Purchase Price Index

52.9

51.2

46.2

57.6

11.4 ↑

ExpandInventory Index of Main Raw Materials

37.3

40.8

53.9

38.4

-15.5 ↓

Contract

Employees Index

48.5

47.1

46.1

44.8

-1.3 ↓

Contract

Delivery Time Index

41.0

44.8

42.1

49.4

7.3 ↑

Contract

GTI-WBP Comprehensive Index

60

43.1

46.3

42.6

42.0

40

20
Apr-2024

May-2024

Jun-2024

In July, the GTI-Woodbased Panel (GTI-WBP) Index registered 42.0%, a decreaseof 4.3 percentage points from the previous month, was below the critical value(50%) for four consecutive months, indicating that the business prosperity ofwood-based panel industry represented by the index shrank from last month.

Jul-2024

critical value, and indicating an overall upward trend in raw material prices. The
rise in transportation costs and the insufficient raw material inventory in somecountries due to the rainy season had led to such trend of the purchase prices ofraw materials.

Main Challenges Reported by
GTI-WBP Enterprises

Main Suggestions from
GTI-WBP Enterprises• The freight rates for export rose. (Gabon)On the demand side, affected by the downturn in the global timber market, thedemand for wood-based panels declined. This month, both the new orders index
and the export orders index were below the critical value of 50%, recording 40.0%
and 44.9%, respectively. Overall, the reduction in domestic orders for sample
enterprises was significantly larger than the reduction in export orders.
On the supply side, the production index registered 39.1%, was below the criticalvalue for four consecutive months, revealing that for the sample enterprises, thetotal production volume of wood-based panels continued to decline. The
downturn in the global construction and real estate industries had, to someextent, restrained the willingness of enterprises to produce.

In terms of market conditions and developments, the monitoring data from theIndustrial Development Planning Institute under China’s National Forestry andGrassland Administration shows that in the first half of 2024, the plywood andfiberboard industries in China had seen a decline in the number of enterprises anda contraction in total production capacity, indicating further industry
restructuring. In contrast, the particleboard industry had shown a further
increase in both the number of enterprises and the total production capacity. In
June, Brazil's tropical plywood export volume remained stable compared to thesame period last year, reaching 2,900 m3, and recently in the domestic market,• There was a lack of quality employees. (Thailand)

the demand for plywood had shown signs of recovery. In the middle of June, theconstruction materials cost index released by the Statistics Malaysia indicated aslight increase in the prices of the country’s building materials such as plywood.

• Although the exports increased this month, the global market
conditions for plywood products were still unstable and tended to besluggish, especially for the Japanese market. (Indonesia)• Develop the skills and expertise of the workforce. Upgrade themachinery to make it more modern. (Thailand)• The company could opt for shipments on break bulk vessels to reduce
dependence on containers and overcrowded terminals. (Brazil)• Containers was insufficient and logistics was slow. (Brazil)• Raw materials for wood production were insufficient, and heavy rains
made transportation difficult. (Thailand)• Hope the government revise the current regulations on the export offorest products and support the sustainable development of upstream
and downstream sectors. (Indonesia)• Dwindling forest resources increased log prices. (Ghana)• The overdue payment by customers led to the shortage of funds forenterprises. (China)• Encourage and promote the marketing of plywood products andencourage the provision of incentives for SFM-certified or legal wood
products from various certification schemes in the global anddomestic markets. (Indonesia)• The wood processing company's export activities were still affected by
the geopolitical turmoil and the war. (Indonesia)

From a price perspective, the purchase price index for raw materials registered57.6%, marking the third time in the past four months that it had been above the01

02

GGSC-No. 07/2024

GGSC-No. 07/2024
GTI-Woodbased Panel (GTI-WBP) Report

GTI-Woodbased Panel (GTI-WBP) Report

GTI-Woodbased Panel Index in July 2024

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

May. 2024

Jun. 2024

Jul. 2024

MoM

Performance

Comprehensive Index

43.1

42.6

46.3

42.0

-4.3 ↓

Contract

Production Index

47.7

40.8

43.3

39.1

-4.2 ↓

Contract

New Orders Index

38.6

40.4

48.5

40.0

-8.5 ↓

Contract

Export Orders Index

43.0

44.9

50.0

44.9

-5.1 ↓

Contract

Existing Orders Index

37.1

44.1

44.0

45.6

1.6 ↑

Contract

Inventory Index of Finished Products

50.8

48.5

52.9

43.9

-9.0 ↓

Contract

Purchase Quantity Index

44.1

39.0

46.4

44.1

-2.3 ↓

Contract

Purchase Price Index

52.9

51.2

46.2

57.6

11.4 ↑

ExpandInventory Index of Main Raw Materials

37.3

40.8

53.9

38.4

-15.5 ↓

Contract

Employees Index

48.5

47.1

46.1

44.8

-1.3 ↓

Contract

Delivery Time Index

41.0

44.8

42.1

49.4

7.3 ↑

Contract

GTI-WBP Comprehensive Index

60

43.1

46.3

42.6

42.0

40

20
Apr-2024

May-2024

Jun-2024

In July, the GTI-Woodbased Panel (GTI-WBP) Index registered 42.0%, a decreaseof 4.3 percentage points from the previous month, was below the critical value(50%) for four consecutive months, indicating that the business prosperity ofwood-based panel industry represented by the index shrank from last month.

Jul-2024

critical value, and indicating an overall upward trend in raw material prices. The
rise in transportation costs and the insufficient raw material inventory in somecountries due to the rainy season had led to such trend of the purchase prices ofraw materials.

Main Challenges Reported by
GTI-WBP Enterprises

Main Suggestions from
GTI-WBP Enterprises• The freight rates for export rose. (Gabon)On the demand side, affected by the downturn in the global timber market, thedemand for wood-based panels declined. This month, both the new orders index
and the export orders index were below the critical value of 50%, recording 40.0%
and 44.9%, respectively. Overall, the reduction in domestic orders for sample
enterprises was significantly larger than the reduction in export orders.
On the supply side, the production index registered 39.1%, was below the criticalvalue for four consecutive months, revealing that for the sample enterprises, thetotal production volume of wood-based panels continued to decline. The
downturn in the global construction and real estate industries had, to someextent, restrained the willingness of enterprises to produce.

In terms of market conditions and developments, the monitoring data from theIndustrial Development Planning Institute under China’s National Forestry andGrassland Administration shows that in the first half of 2024, the plywood andfiberboard industries in China had seen a decline in the number of enterprises anda contraction in total production capacity, indicating further industry
restructuring. In contrast, the particleboard industry had shown a further
increase in both the number of enterprises and the total production capacity. In
June, Brazil's tropical plywood export volume remained stable compared to thesame period last year, reaching 2,900 m3, and recently in the domestic market,• There was a lack of quality employees. (Thailand)

the demand for plywood had shown signs of recovery. In the middle of June, theconstruction materials cost index released by the Statistics Malaysia indicated aslight increase in the prices of the country’s building materials such as plywood.

• Although the exports increased this month, the global market
conditions for plywood products were still unstable and tended to besluggish, especially for the Japanese market. (Indonesia)• Develop the skills and expertise of the workforce. Upgrade themachinery to make it more modern. (Thailand)• The company could opt for shipments on break bulk vessels to reduce
dependence on containers and overcrowded terminals. (Brazil)• Containers was insufficient and logistics was slow. (Brazil)• Raw materials for wood production were insufficient, and heavy rains
made transportation difficult. (Thailand)• Hope the government revise the current regulations on the export offorest products and support the sustainable development of upstream
and downstream sectors. (Indonesia)• Dwindling forest resources increased log prices. (Ghana)• The overdue payment by customers led to the shortage of funds forenterprises. (China)• Encourage and promote the marketing of plywood products andencourage the provision of incentives for SFM-certified or legal wood
products from various certification schemes in the global anddomestic markets. (Indonesia)• The wood processing company's export activities were still affected by
the geopolitical turmoil and the war. (Indonesia)

From a price perspective, the purchase price index for raw materials registered57.6%, marking the third time in the past four months that it had been above the0102Ὧ䈊㖞Ხ⋈䴆偹ᶢⲛ挅Ḩ妵

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

About ITTO

About GGSC

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

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

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

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

and diversification of international trade in tropical timber from

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

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

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

Chinese enterprises in forest products industry, GGSC became an

ITTO’s membership represents about 90% of the global tropical timberinternational initiative in 2019. Since then, GGSC has been acting as atrade and more than 80% of the world’s tropical forests.

global platform for serving the sustainable development of the forest

Mexico, and China. In 2022, the total production of woodbased

products industry.

panel in the nine countries mentioned above was 336 million

intergovernmentalorganization

promotingthe

MONTHLY
GGSC-No. 07/2024Ὧ䈊㖞Ხ⋈䴆偹ᶢⲛ挅Ḩ妵

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

cubic meters, accounting for

63.8% of the total global

production volume of woodbased panel.

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

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

Interpretation

but can help to understand the timber industry trend.

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

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

GTI-WBP index contains diffusion index and comprehensive index.

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

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

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

Contact Us
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

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

Survey Method

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

Index RepresentativenessThe pilot countries for the GTI-WBP index include Indonesia, Malaysia, Thailand, Gabon,
Republic of the Congo, Ghana, Brazil, Mexico and China. In 2022, the total production ofwoodbased panel in the nine countries mentioned above was 336 million cubic meters,
accounting for 63.8% of the total global production volume of woodbased panel.