GTI report: Timber-Sector Downturn Eases in Some Producer Countries

Global Timber Index (GTI) tracks the tropical timber-sector in seven pilot countries comprising China (the dominant consumer), and six major tropical-timber producing countries: Brazil, the Congo, Gabon, Indonesia, Malaysia and Mexico. According to the latest edition of GTI Report, these countries showed signs of easing in November.

Air-drying sawn timber in a community-owned sawmill in San Pedro, Oaxaca, Mexico/img: ITTO

The six producer countries were all below the threshold of 50% in November, but values increased for all these countries compared with the previous month. Malaysia has the biggest turnaround with index increasing 9.9 percentage points, followed by Mexico and Gabon.

GTI-participating enterprises also provided updates on the timber sector in their countries. For example, Brazilian enterprises reported that rain had given big impacts to the transportation. Delayed deliveries reduces the supply of logs, and it had increased the demands of logs.

Gabonese and Indonesian enterprises referred to the high price of fuel oil (diesel) which had increased production cost. meanwhile some enterprises in Mexico reported stagnant production due to insufficient transportation capacity and thus the slow shipping of logs from forests to sawmills.

Indonesian enterprises noted that, despite low log prices, buyer requirements for products remained strict (super quality and FSC certified); some enterprises were calling for incentives for wood and wood products sourced from sustainably managed or legal forests.

Source: ITTO


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