The global timber industry continued to face mounting operational and trade pressures in April 2026. Despite difficult market conditions, China, Ecuador and Mexico recorded expansion in timber sector activity, according to the latest Global Timber Index (GTI) Report supported by the International Tropical Timber Organisation (ITTO).
The report monitored timber sector performance across ten pilot countries in Africa, Asia and Latin America. It highlighted growing concerns surrounding high operating expenses, changing export patterns and trade uncertainty. However, several markets still demonstrated resilience.
China recorded the highest GTI reading at 53.5%. Ecuador followed closely with 53.0%, while Mexico registered 52.0%. All three countries remained above the 50% benchmark. This indicated overall growth in their timber industries during April.
Other participating countries remained below the expansion threshold. The Republic of the Congo posted a reading of 49.8%, suggesting only a slight contraction. Indonesia recorded 47.8%, while Brazil stood at 46.1%. Thailand and Ghana reported readings of 45.8% and 45.6% respectively.
More severe downturns were observed in Gabon and Malaysia. Gabon’s GTI reading reached 36.0%, while Malaysia fell to 27.5%. Significant market weakness was reflected in both countries.
The latest findings also revealed notable differences across operational segments. In Mexico, harvesting volumes increased compared with the previous month. Brazil maintained stable harvesting levels for the third consecutive month. This stability was viewed positively by market participants.
Production activity improved in several regions. Gains were recorded in China, Ecuador and Gabon during April. Demand conditions also strengthened in selected markets. New orders increased in Mexico, Ecuador and China. In the Republic of the Congo, new orders remained stable for the third month in succession.
Industry specialists noted that the timber market remained under considerable pressure. High operational costs continued to affect producers and exporters worldwide. Fuel prices declined in several countries during April. Even so, they remained historically elevated. Transport and harvesting operations were heavily affected by these expenses.
Additional pressure came from raw material prices, labour costs, electricity charges and taxation. Profit margins were further compressed across many timber businesses. Smaller operators were particularly vulnerable to sustained cost increases.
Specialised GTI sub-indices also pointed towards broader industry weakness. The GTI-Producers Index reached 45.7% during April. Meanwhile, the GTI-Woodbased Panel Index stood at 46.6%. Both indicators suggested ongoing contraction within key manufacturing segments.
In response to these challenges, support measures were introduced by some governments. In Malaysia, the Sarawak government approved a 50% reduction in royalty rates and selected statutory charges linked to natural forest timber. The measure was designed to reduce financial pressure on industry operators.
Trade dynamics also shifted significantly during the reporting period. Timber exporters continued adjusting to changing international demand patterns. Trade flows involving Middle Eastern markets were disrupted by tensions surrounding the Strait of Hormuz.
Exports from several GTI pilot countries to the Middle East declined sharply. Brazil provided one of the clearest examples. Between January and March 2026, Brazilian timber exports to Middle Eastern markets reportedly dropped by almost two-thirds.
At the same time, Brazil’s timber sector experienced weaker exports to the United States. Increased shipments to Mexico were reported instead. This reflected broader efforts by exporters to diversify destinations and secure alternative markets.
Analysts suggested that global timber trade may continue to experience volatility throughout 2026. Geopolitical uncertainty, rising costs and fluctuating demand remain major concerns for producers and exporters alike.
The GTI Report also highlighted several forest governance developments across participating countries. In Mexico, efforts continued to prevent livestock-related deforestation. These measures formed part of broader environmental management strategies.
Malaysia focused on technological empowerment within the forestry sector. Digital tools and modern monitoring systems were being encouraged to improve operational efficiency and sustainability practices.
Thailand advanced community-based participatory governance initiatives during the reporting period. Local communities were increasingly being involved in forest management and decision-making processes. Greater stakeholder participation was promoted through these programmes.
The April 2026 GTI findings reflected a timber sector operating in a highly challenging environment. Nevertheless, growth in China, Ecuador and Mexico demonstrated that opportunities still existed within selected markets.
Industry observers believe cost management, market diversification and governance improvements will remain central priorities in the months ahead. Trade conditions are expected to remain uncertain. However, strategic adaptation by timber producers and exporters could support future recovery across the global wood industry.
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