In May 2026, the GTI-Woodbased Panel (GTI-WBP) Index registered 41.9%, a decrease of 4.7 percentage points from the previous month and below the critical value (50%) for two continuous months, indicating that in the pilot countries, the overall business prosperity of wood-based panel industry represented by the index shrank from the previous month. 

On the demand side: The overall performance of the wood-based panel market was sluggish this month. The new orders index stood at 40.6%, down 8.6 percentage points from the previous month and remaining in contraction territory below 50%. The export orders index came in at 39.6%, a decrease of 5.9 percentage points, while the existing orders index fell 4.3 percentage points month-over-month to 38.9%. Hit by high trade tariffs and the global downturn in construction and real estate, demand in the wood-based panel market had weakened. Meanwhile, conflicts in the Middle East had driven up costs and pushed panel prices higher in many countries, thus further dampening consumer willingness to buy.

On the supply side: The production index registered 39.1%, down 8.2 percentage points from the previous month and remaining in contraction territory for the second consecutive month, indicating continued declines in overall production capacity. Facing pressures from rising costs and shrinking market demand, many wood-based panel manufacturers adopted cautious production strategies. The inventory index of finished products rose to 55.6%, up 9.8 percentage points from the previous month and moving above the 50% critical value, signaling that overall supply exceeded demand in the wood-based panel market this month, with inventory once again on the rise.

From the price perspective: The purchase price index for raw materials recorded 62.1%, a drop of 8.1 percentage points from the previous month, yet it had remained above the critical 50% level for several consecutive months, indicating that prices for logs and other related raw materials continue to trend upward. This month, enterprises in countries like China and Ecuador reported rising raw material prices, while enterprises in other pilot countries reported cost pressures related to energy, logistics, taxes and fees, labor, etc.

Main updates related to the wood-based panel market include: News from the GTI-Indonesia Focal Point reveals that the country’s plywood export performance in May remained relatively stable compared with the previous month, with Asian market demand continuing to provide the main support for export growth — particularly for products used in construction and interior applications. From January to April, China’s plywood exports rose 17.40% year-on-year, fiberboard exports increased 9.80%, and particleboard exports surged 111.10% year-on-year. Ghana’s plywood export value reached €3.498 million in the first quarter, a sharp 119% increase from €1.601 million in the same period of 2025.

GTI-Woodbased Panel (GTI-WBP) Report - May 2026.pdf