Rosin Market Update, 7-18-16

Posted on July 18, 2016 by Ernest Spinner

Chinese gum rosin prices hit a new multi-year low last week at $1700/mt.  The last time prices were this low was in October of 2012.

The interesting thing about the decline is the commentary coming from China re low downstream demand for the derivatives, lots of stock while the new crop is in full production, etc.  Add this to the increasing supplies being imported into China from Vietnam, Indonesia & Brazil.

What is importantly missing from this dialog is the story line of the past few years about rising wages putting a floor under which farmers would not be willing to go into the forest to harvest the crop. If the overall economic slowdown in China is affecting the willingness of farmers to work for less, we can’t judge where the bottom might be.

Gum Rosin Prices

 

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