In May 2025, the GTI-Woodbased Panel (GTI-WBP) Index registered 50.5%, a decrease of 0.1 percentage point from the previous month and above the critical value (50%) for the second consecutive month, indicating that in the GTI pilot countries, the overall business prosperity of wood-based panel industry represented by the index expanded from the previous month.

On the demand side, the overall demand for wood-based panels in the GTI-WBP pilot countries showed a slight contraction. This month, the new orders index dropped by 5.1 percentage points to 49.2%, and the export orders index decreased by 0.2 percentage point to 51.0% (still above the 50% critical value), indicating an overall decline in domestic orders for GTI-WBP enterprises, while the international market demand was on the rise. This month, timber markets in different countries saw various challenges. For example, in Thailand, the slowdown in real estate sector and the reduced consumer purchasing power had led to insufficient demand for wood-based panels. And in Malaysia, some enterprises reported a shortage of plywood demand for export.

On the supply side, the supply of wood-based panels in the pilot countries showed an upward trend for the third consecutive month, with the production index reaching 54.4%. This month, countries like China, Gabon, Ghana, and Mexico saw growth in WBP production activities. However, looking at the data for the past six months, the overall demand for wood-based panels remained weak. Therefore, the manufacturers need to beware of overcapacity of production and excess product inventory. Also, many sample enterprises of different countries reported a lack of raw materials or difficulties in procuring raw materials, suggesting that the WBP manufacturers need to improve inventory management for raw materials.

In terms of prices, the purchase price index for raw materials recorded 60.8%, remaining above the critical value for eleven consecutive months, indicating that the costs of raw materials continued to rise. This month, raw material purchase prices increased in Malaysia, Thailand, Ghana, Brazil, Mexico, and China. Notably, Ghana and Mexico had seen significant increases in purchase prices for several consecutive months, making it difficult for their businesses to alleviate cost pressure.

Main updates related to the wood-based panel market include: On 22 May, the Coalition of Fair Trade in Hardwood Plywood submitted a petition to the US Department of Commerce and the International Trade Commission, calling for the imposition of antidumping and countervailing duties on US imports of hardwood and decorative plywood imported from China, Indonesia, and Vietnam. Recently, a report from the Brazilian Furniture Industry Association (ABIMÓVEL) said that in 2024, Brazil’s exports of particle boards reached US$113.4 million, an increase of 40.4% compared to 2023, and the majority of this growth came from China (+82.1%) and Colombia (+128.1%).

GTI-Woodbased Panel (GTI-WBP) Report - May 2025.pdf