KUCHING: The Global Timber Index (GTI) Report for November 2024 has shown positive signs for the overall trend of global timber production and trade.
Pilot countries which stood out are Ghana and Thailand, with their GTI Index registered at 59.6 per cent and 50.3 per cent, respectively. Both rose above the critical value of 50 per cent, indicating an overall uptrend in the timber sectors of the two countries.
The GTI-Thailand Index increased by 6.1 percentage points in November from the previous month of October, rising above the critical value after two months, indicating that the business prosperity of the superior timber enterprises represented by the GTI-Thailand Index expanded from October.
“Despite severe flooding in many parts of Thailand this month (November), the timber sector has demonstrated strong development resilience, with an overall stable volume of harvesting and an increase in both production and new orders compared to the previous month.
“As for the eleven sub-indexes, three indexes (production, new orders, and export orders) were above the critical value of 50 per cent, four indexes (harvesting, inventory of finished products, purchase price, and employees) were at the critical value, while the remaining four indexes (existing orders, purchase quantity, inventory of main raw materials, and delivery time) were below the critical value,” according to the GTI Report for November 2024.
The report was prepared by the Global Green Supply Chains Initiatives (GGSC), with the support of the International Tropical Timber Organisation (ITTO) and the Trade & Investment Promotion Institute (IPIM) of Macao SAR, China, and focal points in the pilot countries of Indonesia, Malaysia, Thailand, Gabon, Republic of Congo (ROC), Ghana, Brazil, Mexico, and China.
The GTI is an index system that comprehensively reflects the overall trend of global timber production and trade. It is completed with the participation of major ITTO producers and consumer members.
In November, the GTI-Ghana index registered 59.6 per cent, up 11.6 percentage points from October, and rose above the critical value after four months. This indicated that the business prosperity of the superior timber enterprises represented by the GTI-Ghana index expanded month-on-month.
Overall, both harvesting and production volumes in Ghana increased compared to October, and there was a recovery in demand. However, the continuous rise in the purchase prices of raw materials over several months indicates persistent cost pressures for production enterprises.
As for the 11 sub-indexes, eight of them (harvesting, production, new orders, inventory of finished products, purchase quantity, purchase price, inventory of main raw materials, and delivery time) were above the critical value, whereas two indexes (export orders and employees) were at the critical value, and only one index (existing orders) was below the critical value. Compared to October, the 11 indexes increased by 1.7 to 18.9 percentage points in November.
Besides Ghana and Thailand, the GTI indexes for Gabon (39.4 per cent) and Mexico (35.5 per cent) increased by 4.0 and 1.6 percentage points, respectively, month-on-month, suggesting an easing in the downward trend in their timber sectors.
“Due to factors such as the New Year effect, the GTIs for China (49.7 per cent), Republic of Congo (45.7 per cent), Brazil (35.8 per cent), and Malaysia (18.8 per cent) were below the critical value, indicating that the timber sectors in these countries remained relatively sluggish,” the GTI Report pointed out.
The report said the GTI sub-indices also show encouraging signs on the supply and/or demand sides of some countries. In Africa, Ghana’s timber supply became active, with both harvesting and production volumes increasing compared to the previous month. In Asia, Thailand saw an increase in new orders, particularly from the export market, and China’s export orders continued to show a positive trend. In Latin America, the decline in orders for Mexico had eased.
“In November, GTI pilot countries made encouraging progress in sustainable forest management. On November 6, during the 12th session of the Ghana-EU Joint Monitoring and Review Mechanism (JMRM) of the Voluntary Partnership Agreement (VPA), Ghana’s Minister of Lands and Natural Resources announced that Ghana had set June 30, 2025, as the date to deliver its first consignment of FLEGT-licensed timber to the EU. This milestone would make Ghana the first country in Africa to issue FLEGT licenses,” added the report.
(FLEGT stands for Forest Law Enforcement, Governance & Trade, a programme of the European Union to combat illegal logging and its trade).
In November, in ROC, the International Tropical Timber Technical Association launched the project “Private Sector Support for Domestic Timber Market” (ASP-MIB). Financed by the European Union Delegation to the tune of two million euros over four years, the project aims to structure and valorise the domestic wood value chain by encouraging the use of legal and sustainable wood in the domestic timber market.
On the other hand, Brazil officially launched the country’s “Platform for Climate Investments and Ecological Transformation”. The platform was created to mobilise national and international capital in support of the Brazilian government’s ecological and climate transformation plans. Initially, it will focus efforts on nature-based and bioeconomy solutions, including restoration and sustainable management of native vegetation, efforts to reduce deforestation, and other initiatives.
