GTI Report: Indonesia, Ghana post slight growth in June, as other timber markets ebb
- 2 days ago
- 3 min read
Sorting materials used in laminated wood products at PT Inh in East Java, Indonesia. © PT Inh
The timber sector in both Indonesia and Ghana showed a slight improvement in June 2026, while activity declined in other countries across the tropics as well as in China, according to the latest Global Timber Index (GTI) Report. The ITTO-supported GTI tracks the performance of the timber sector in ten pilot countries in Africa, Asia, and Latin America.
Among the pilot countries, only Indonesia (50.7%) and Ghana (50.5%) registered GTI readings above the 50% threshold, indicating a slight expansion in their timber sectors compared to the previous month. The other eight countries were in contraction territory: Mexico (49.8%) and China (48.4%) posted readings indicating slight contraction; Ecuador (47.9%), Republic of the Congo (47.5%), Brazil (46.9%), and Thailand (46.6%) showed moderate contraction; and Gabon (39.5%) and Malaysia (32.3%) recorded a significant downturn.
Sub-indices revealed that both harvesting volume and production output rose in Indonesia and Mexico, while new orders increased in Indonesia, Ghana, and Brazil. The data also showed Latin American pilot countries posting relatively strong timber export performances in the first half of 2026: Brazil’s sample enterprises saw their total export orders grow for six consecutive months; Mexico’s export market contracted only in April; and Ecuador’s export orders grew over the past three months, and during the first half of the year, with the only decline recorded in March.
Specialized sub-indices indicated overall contractions in June. The GTI-Producers Index was at 47.2%, while the GTI-Woodbased Panel Index stood at 46.1%.
Insufficient market demand stood out as a major concern raised by GTI sample enterprises. In response, the enterprises proposed a range of self-help measures, including strengthening market and channel development, promoting market diversification, expanding online promotion and sales, as well as slowing down production and optimizing inventory management.
At the same time, governments and industry associations have actively worked to create a more favorable environment for timber industry exports through trade agreements and market development: Malaysia's Ministry of Investment, Trade and Industry is working to expand markets for wood products including China, The Republic of Korea, and India in an effort to achieve this year's export growth target of 15 percent; the Indonesian Furniture and Craft Industry Association highlighted Europe, East Asia, Australia and India as priority markets for expansion; Brazil’s Congress has ratified the free‑trade agreement between Mercosur and the European Free Trade Association. The agreement regulates sustainable forest management and relevant trade matters, with parties pledging to promote trade in products that derive from sustainably managed forests. Ecuador is advancing trade‑agreement negotiations with Morocco and has listed timber as a priority category in the talks.
The pilot countries are accelerating their efforts on to strengthen long‑term supplies of raw materials. Ghana, for example, has developed some 400,000 hectares of planted forests and recently launched a reforestation initiative aiming to plant 30 million trees annually.
Veneer drying in a yard at Ocean Wood Ghana Ltd. © Peter Zormelo
However, extreme weather and climate risks continue to disrupt timber material supplies: In Indonesia, El Niño conditions heighten fire risks, particularly during the peak dry season from July to September, prompting the government to reactivate its forest and land fire coordination mechanism; in Mexico, extreme weather has led to a bark beetle infestation in forested areas across many regions, and the National Forestry Commission and local authorities have taken proactive prevention and control measures; in addition, GTI sample enterprises in countries like Thailand, Ghana, and Ecuador reported that rainfall hampered harvesting and transportation, and proposed countermeasures such as stockpiling raw materials in advance and stepping up road maintenance.
The GTI report notes the EU Deforestation Regulation (EUDR) and the FLEGT mechanism are driving digital traceability and legality certification, as demonstrated by Thailand’s newly launched EUDR data platform, Ghana’s FLEGT licensing progress, as well as urgent calls for faster FLEGT VPA progress in the Congo.
Starting in June, the report also presents case studies of good practice for legal and sustainable timber trade, beginning with an example of forest management practices in Indonesia.
The monthly GTI Report, GTI-Producers Report and GTI-WBP Report are freely available at www.itto.int/gti.
Source:
Comments