Tuesday, January 20, 2026
Timber industries across multiple regions continue to face challenging operating conditions, even as producers and policymakers intensify efforts to diversify export markets, according to the latest Global Timber Index (GTI) Report. Supported by the International Tropical Timber Organization (ITTO), the GTI monitors monthly performance trends across selected pilot countries in Africa, Asia, and Latin America, providing insights into production, demand, and trade dynamics within the global timber sector.
The most recent GTI readings indicate that the majority of pilot countries remain below the 50% benchmark, which separates sector expansion from contraction. Among the ten countries surveyed, Ghana stood out as the sole market showing a clear upward trend, recording a GTI score of 56.6%. This suggests sustained growth momentum within Ghana’s timber industry, supported by rising harvesting and production activity.
Several other countries recorded readings close to the expansion threshold, signalling relative stability despite broader market uncertainty. China posted a near-neutral reading of 49.9%, while the Republic of the Congo and Mexico each registered 48.0%, and Brazil followed closely at 47.9%. These figures reflect timber sectors that are largely holding steady, with balanced demand and output levels.
By contrast, Thailand (46.8%), Indonesia (46.3%), and Ecuador (46.3%) showed moderate contraction, while Gabon (34.6%) and Malaysia (29.5%) experienced more pronounced downturns, indicating significant pressure on domestic timber operations and supply chains.
Despite overall contraction, the GTI’s national sub-indices revealed export market performance as a notable positive trend. Export conditions improved in several countries, with Gabon and Thailand shifting from contraction to strong expansion in overseas markets. Brazil’s export orders increased for the third consecutive month, while export activity in Indonesia, the Republic of the Congo, and Mexico remained stable, underlining the growing importance of international demand in sustaining timber industries.
Production-side indicators also showed selective improvement. Ghana continued to record consecutive monthly growth in harvesting volumes, reinforcing its positive GTI performance. Production output increased in both Ghana and China, while new orders rose month-on-month in Indonesia, Mexico, and China, suggesting a degree of recovery in downstream demand.
Specialised GTI sub-indices, however, confirmed that challenges persist across the value chain. The GTI-Producers Index stood at 46.3%, while the GTI-Wood-Based Panel Index registered 45.2%, indicating contraction in both primary timber production and panel manufacturing segments.
In response to these conditions, GTI pilot countries are actively pursuing export diversification strategies. In December, Indonesia signed a free trade agreement with the Eurasian Economic Union, expected to support furniture and wood product exports to non-traditional markets. Malaysia, through its External Trade Development Corporation, partnered with a US-based home goods e-commerce platform to help local manufacturers expand online sales into the American market. Meanwhile, Brazil’s timber industry is exploring deeper engagement with China and the European Union to offset pressures from increased US tariffs.
The international operating environment for timber and furniture producers remains complex and volatile. Recent tariff and trade policy changes further illustrate this uncertainty. China expanded tariff exemptions at the Hainan Free Trade Port to cover nearly all wood raw materials, while Mexico increased furniture import duties to 25–35% for countries without free trade agreements.
Overall, the latest GTI findings suggest that while the global timber industry continues to face structural and market-related headwinds, strategic export diversification and adaptive trade policies are emerging as critical tools for resilience and long-term growth.
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Tags: forestry and wood industry, Global Timber Index report, international timber trade, ITTO timber report, timber exports diversification, timber market trends, wood products trade
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