The international timber markets continued to face challenges in July 2024, with a generally sluggish performance observed across the board. According to the latest Global Timber Index (GTI) Report, supported by the International Tropical Timber Organization (ITTO), timber enterprises in various countries are actively seeking ways to adapt and thrive amid the downturn.
The GTI, which monitors the timber sectors in nine pilot countries, reported that all participating nations experienced declines, with GTI values falling below the 50% threshold. Among the best-performing, though still declining, were Thailand (48.4%), the Congo (48.1%), and Ghana (46.8%). Other countries, including Indonesia, Gabon, China, Brazil, Mexico, and Malaysia, also saw downturns, with Malaysia experiencing the steepest drop at 25.7%.
Despite the overall downward trend, there were some positive developments in specific regions. Indonesia and Gabon reported an increase in timber harvesting volumes compared to the previous month. Thailand’s timber sector continued to see a rise in existing orders, while production and new orders remained steady in the Congo. Malaysia and Mexico also saw a reduction in the decline of export orders.
To combat the challenges, timber enterprises in these countries have proposed various strategies. Malaysian companies are calling for government assistance to alleviate port congestion, while their counterparts in Mexico suggest implementing tariffs on imports to protect domestic products. Ghanaian enterprises are advocating for policies to secure raw material supplies, and Gabonese companies are seeking additional railway carriages from the operator SETRAG. Chinese firms are exploring opportunities to boost exports, particularly by shifting focus to the Southeast Asian market, while Indonesian enterprises are requesting incentives for sustainable forest management.
In related news, the GTI-Producers Index and GTI-WBP Index for wood-based panels both showed continued declines in July, at 41.2% and 42.0%, respectively.
The GTI Report also highlighted significant industry events, including the 27th Session of the Committee on Forestry in Rome, where FAO released The State of the World’s Forests 2024, and the 26th World Congress of the International Union of Forest Research Organizations in Stockholm, which focused on forest resilience and sustainability towards 2050.
Source: ITTO
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