In August 2026, the GTI-Woodbased Panel (GTI-WBP) Index registered 40.5%, up 2.9 percentage points from the previous month and below the critical value (50%) for five consecutive 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, however, the contraction eased.

On the demand side: Demand for wood-based panels remained generally soft this month. The new orders index registered 38.6 percent, up 4.5 percentage points from the previous month. The existing orders index stood at 43.9 percent, edging down 0.4 percentage point and remaining in contraction territory. External demand came under further pressure, with the export orders index falling 4.1 percentage points to 34.9 percent—its twelfth consecutive month below the 50 percent critical value. Persistent global trade frictions and barriers in the wood-based panel industrry, combined with still-subdued demand in certain markets, continued to limit near-term relief for export-oriented producers.

On the supply side: The production index came in at 35.6 percent, marking a fifth consecutive month in contraction and a further decline of 3.7 percentage points from the previous month, indicating an additional slowdown in manufacturing activity. Faced with insufficient new orders and elevated inventory pressures, enterprises deliberately reduced capacity, with some plants operating at persistently low utilization rates. The inventory index of finished products fell 5.7 percentage points to 47.7 percent, moving below the 50 percent critical value and reflecting progress in destocking; more inventory digestion, however, will still require additional time.

From the price perspective: The purchase price index for raw materials registered 59.3 percent, remaining above the critical value for consecutive months. Prices for logs and chemical additives stayed elevated, offering producers no meaningful cost relief. Feedback from GTI sample enterprises indicates that wood-based panel manufacturers in many countries continued to face rising raw-material costs and high logistics expenses, thus compressing profit margins.

Main updates related to the wood-based panel market include: In July, Brazil’s tropical plywood exports rose 7.0 percent in volume, increasing from 2,800 cubic meters to 3,000 cubic meters. Export value, however, declined 6.0 percent, falling from USD 1.8 million to USD 1.7 million.

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