Enviro News Asia, Yokohama — The latest Global Timber Index (GTI) Report, supported by the International Tropical Timber Organization (ITTO), shows that the timber sector recorded mixed performance in January 2026, with Indonesia and Thailand returning to growth while most other tropical producer countries and China experienced contraction.
The GTI for Indonesia rose to 55.1 percent and for Thailand to 54.2 percent, both surpassing the 50 percent threshold that signals expansion. In contrast, readings for Gabon (48.3 percent), Brazil (47.2 percent), Republic of the Congo (46.0 percent), China (45.0 percent), Ghana (41.0 percent), Mexico (39.8 percent), Malaysia (37.5 percent), and Ecuador (36.3 percent) remained below the benchmark, indicating a general slowdown in those markets.
The sub-indices reveal varied regional dynamics. In Southeast Asia, domestic demand strengthened in Indonesia and Thailand, accompanied by higher production volumes. In Africa, supply-side conditions stabilized as harvesting and production activities in Gabon and the Republic of the Congo held steady. In Latin America, export performance emerged as a relative bright spot, with Brazil and Mexico posting month-on-month increases in export volumes, while Ecuador’s export market showed signs of stabilization following earlier declines.
However, specialized indicators continued to reflect overall contraction. The GTI-Producers Index registered 48.9 percent, and the GTI-Woodbased Panel Index stood at 43.6 percent, both below the expansion threshold.
Survey feedback from participating enterprises highlighted persistent structural challenges. Companies in Indonesia, Thailand, Brazil, and Ecuador reported unstable or insufficient raw material supplies. Meanwhile, enterprises in Malaysia, Ghana, and China cited rising or consistently high raw material purchase prices. Across several markets, firms also faced mounting costs related to labour, electricity, fuel, and taxation. To cope with these pressures, businesses called for stricter internal cost controls and greater government support, including subsidies and tax incentives.
Despite difficult external conditions over the past year, some producer countries achieved export growth. Thailand’s furniture and furniture parts exports reached approximately USD 1.80 billion in 2025, representing nearly 24 percent year-on-year growth. Brazil’s lumber exports rebounded after three consecutive years of decline, rising 5 percent to 2.96 million cubic meters in 2025. Although Brazil’s shipments to the United States fell 12 percent to 842,000 cubic meters, exports to China, Spain, the United Arab Emirates, Saudi Arabia, and other destinations increased.
In 2026, GTI pilot countries have introduced new measures to address supply constraints and stimulate demand. On the supply side, the Union of Foresters and Wood Industries of Gabon (UFIGA) reached an agreement with railway operator SETRAG on 7 January to eliminate the requirement for advance cash payment prior to transportation, easing liquidity pressures for forestry operators. On the demand side, Brazil, Mexico, and Ecuador launched new housing policies and targets expected to generate additional demand for timber and furniture products.
The report concludes that while certain markets demonstrate resilience, the global timber industry continues to face uneven recovery patterns shaped by cost inflation, raw material constraints, and shifting export dynamics. (*)
