Rosin Market Update

Posted on December 5, 2016 by Ernest Spinner

The price of Chinese gum rosin has been increasing over the past few weeks, which is not surprising in view of the end of the crop year. 

What is notable however, is the gap between the price of Chinese gum rosin & the much lower price of Chinese hydrocarbon resins has reached a new yearly high of $530/mt. We have to go back to 2011 to see this wide a spread.  In addition the to lower price of hydrocarbon resins, Chinese rosin derivative producers are now importing larger amounts of Russian tall oil rosin, supplanting the lower priced imported gum rosins from Vietnam, Indonesia & Brazil.  gum-rosin-prices 

Approaching yearend it is estimated that Chinese gum rosin production fell another 6% this year, to ~ 440K mts.  To put this perspective, in 2006 it was 810K mts.

Pushing the price up for seasonal reasons, while watching more imported rosins from various sources come in, & apparently ignoring the price of hydrocarbon resins all help explain the 45% drop in production over the decade.

 

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