April 2025 observed decline in prices for tall oil rosin in both the USA and India, reversing the upward movement observed in March. The decline in India was 1.5% and can be attributed to a modest reduction in upstream crude tall oil prices and a mild decline in domestic downstream demand in key sectors, such as adhesives, coating and paints. Imports from the USA, a major supplier, also reflected falling prices amid weak demand there. The overall impact of weak domestic demand levels, alongside lower international sourcing costs off the USA tall oil market, led to the price decrease for this month, with no reported significant tariff adjustments.

In April, tall oil rosin prices decreased by 1.0% in the USA, although upstream crude tall oil prices increased slightly. The moderate price drop was primarily due to soft demand from downstream sectors, especially paints and coatings, that is being pressured by high mortgage rates. The automotive sector also showed signs of reduced demand.  Although tariffs slightly increased input costs, they did not significantly disrupt tall oil rosin prices in April.

Demand for tall oil rosin in the USA continued to be weakened with declines in key markets including paints, coatings and automotive. The paints and coatings industry continued to face high mortgage rates, which will most likely continue to suppress short-term demand. Softness in automotive demand continued. The automotive sector is expected to have some form of recovery, but overall demand remained weak. 

In India, tall oil rosin supply remained steady, with imports continuing from suppliers in the USA. India has little local production and majorly relies on imports. Stock levels remained full; however, demand was weaker in the adhesives and paints sectors which led down slower procurement activity. The import-driven nature of tall oil rosin prices reflected trends in international consumption, contributing to the overall softer tall oil rosin pricing environment. Demand in India remained softer, with macroeconomic headwinds and buyer caution limiting restocking activity, especially in the coatings industries. 

Looking ahead, ChemAnalyst expects that tall oil rosin prices are expected to decline again in the next few weeks, likely to be driven again by ongoing reduced demand from key downstream sectors such paints and coatings. Weaker demand trends in these areas and stable or declining costs upstream are likely to lead to further price pressure on tall oil rosin. Stimulus of lower import pricing from larger suppliers like USA will provide further price reductions. Overall weak macroeconomic backdrop and caution across the market is continuing to restrict restocking efforts, leading to tall oil rosin price reductions.