The Global Timber Index (GTI) Report for May 2026 revealed that among the ten GTI pilot countries, only Brazil (51.7%) recorded a GTI reading above the 50% critical value, indicating a slight expansion in its timber sector compared to the previous month. The other nine countries were in contraction territory: Indonesia (49.8%), Mexico (49.6%), the Republic of the Congo (48.6%), and Ecuador (48.1%) posted readings close to the critical value, indicating slight contraction; China (47.8%), Thailand (44.6%), and Ghana (43.7%) showed moderate contraction; and Gabon (39.0%) and Malaysia (25.8%) recorded a significant downturn. 

The GTI sub-indices showed that Mexico’s harvesting volume increased this month, Ecuador’s production volume maintained growth for three consecutive months, and the volume of new orders rose in Indonesia, Thailand, and Brazil. Data also indicated that export performance of the African and Latin American countries was relatively strong this month: Gabon, Brazil, and Ecuador all saw growth in export orders compared to the previous month; the Congo’s export market remained stable for seven consecutive months; Mexico’s export market stabilized after a downturn; and the contraction in Ghana’s export market eased.

The biggest challenges stemmed from weak demand and rising costs, with tensions in the Middle East further driving up fuel and logistics costs for businesses. To address demand side challenges, timber sectors in the GTI participating countries actively diversified export markets and stepped up international promotion and cooperation. For example, Thailand partially offset the contraction in the Middle East market by expanding the Chinese, U.S., and Malaysian markets; Chinese furniture enterprises maintained order volumes through price adjustments, using a “volume for price” strategy to stabilize their export base; at the same time, the countries continued to advance the building of legal and sustainability systems to improve access to international markets. To alleviate cost pressures, some enterprises strengthened cost control and inventory management, and called on governments to stabilize fuel prices and provide tax incentives and subsidies. 

Seasonal rainfall and extreme weather have directly impacted timber producing countries. Thailand’s Meteorological Department announced that the rainy season of this year officially began on May 15 and may last until mid October, which would affect timber harvesting and raw material supply. In addition, in areas such as Durango, Mexico, the spread of pests like the bark beetle caused significant difficulties for harvesting, mainly due to the rise in extreme temperatures, which increased the pest’s breeding cycle from one per year to as many as three.

GTI pilot countries continued to make progress in advancing sustainable forest management and legality certification. The Republic of the Congo-EU FLEGT VPA joint annual report showed that in the Congo, 9.79 million hectares of concessions are covered by approved forest management plans, and significant advances have been recorded in the deployment of the Computerized Legality Verification System (SIVL). Ghana has issued approximately 500 FLEGT licenses, covering timber exports valued at around €14.3 million. Gabon’s government uses Forest Concession for Sustainable Management (CFAD) to ensure responsible management and utilization of forest resources. Brazil increased areas under federal forest concessions from 1.05 million hectares in 2020 to 1.59 million hectares in 2025, and significantly expanded the area of forests under long term sustainable management plans. Mexico’s government released the National Forestry Program (PNF) 2026-2030, which outlines 146 action lines aimed at increasing sustainable forest productivity and other goals.

GTI Report - May 2026.pdf