Rosin Market Update, 4-16-16

Posted on April 25, 2016 by Ernest Spinner

No updates for the past several weeks because there has been almost no price movement. But if nothing else, we can find some unintended insight in a report from China:

 

Most gum rosin plants still tend to quote firm and hold back stock this week in expectation of price raise especially in South China producing region. However, although downstream derivative plants kept sending inquiries, few placed orders at current price level.”

 

Right – why place orders at current levels when there are so many competing rosins now entering China at much lower prices?  These cannot come close to replacing all that is needed within China, but at the  margin they can cap the ability for the rosin bosses to move the markets as they were able to in the past.  We could be looking at the new normal for quite a while, where prices will have an upside cap for reasons stated above, & on the downside by increasing labor costs.

Gum Rosin Prices

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