In April, gum rosin prices in Asia and South America fell back below the gains seen in March as demand from downstream users fell short, particularly in the adhesives, coatings, and paints sectors. Given no disruptions in supply, the limited procurement and overall decline in industrial activity negatively impacted prices.

In China, gum rosin prices fell 4.9% as demand remained lacklustre and purchasing remained cautious. Some business activity index declines were noted, particularly from most of the key gum rosin consumer sectors, raising some concerns about the general demand recovery. Companies kept to their purchasing only as required as stockpiling was not an option.

Indonesia's gum rosin prices decreased 7.0%, as weak domestic demand from coatings and paints put further downward pressure on prices. As an export-driven market, Indonesia’s gum rosin prices were further influenced by soft international demand from major buyers like China and India. Domestic supply remained steady, but limited domestic demand led to weaker prices. 

Japan noted a price decline in gum rosin of 6% on continued weak demand from downstream sectors for paints and coatings. The continued pressure on prices was also due to the country's reliance on imports from China and Vietnam, both of which also had weak demand. Domestic consumption was sluggish, and manufacturers aligned supply accordingly due to the reduced demand for finished products.

Gum rosin prices in South Korea fell 5.0% on weak domestic and export demand, particularly from downstream sectors in paints and coatings. The supply levels in South Korea did not change, while domestic consumption and export demand to regions such as China and Indonesia remained slow, which resulted in slower inventory turnover and pressure on gum rosin prices.

Vietnam also had a smaller price decline of 2.0%. Even, when the domestic production remained in line, the reduced demand due to downstream sectors like paints and coatings, characterized by weak export activity to both China and Japan kept prices under pressure. Furthermore, the whole overall slowdown in industrial activity did not add much upside to the market outlook.

At the same time, in Southern America, particularly Brazil, had the biggest price decline, which fell by 12.0%. Weak domestic and international demand put downward pressure on prices for gum rosin. Primary importers of Brazil's gum rosin like China, India, and Japan all had weak demand. There was also limited consumption observed in the paints and coatings sectors, which continued to be further pressured on gum rosin prices.

Looking ahead, ChemAnalyst expects that gum rosin prices in Asia and South America are less likely to recover as weak demand will continue in downstream sectors including coatings, and construction. Ample supply, cautious procurement, and sluggish export activity are likely to continue exerting downward pressure on gum rosin prices.