For the Quarter Ending March 2025
North America
In Q1 2025, gum rosin prices saw a consistent upward trend, driven by strong demand and tight supply conditions. The quarter began with an 8.7% price increase in January, supported by rising industrial activity, particularly in the adhesives, construction, and automotive sectors. However, supply struggled to keep pace with demand due to logistical disruptions and reduced availability of pine oleoresin, particularly in southern Brazil. These supply-side constraints, combined with rising raw material costs, contributed significantly to the price surge.
February continued the upward momentum with a 7.1% price increase. The strong demand from infrastructure projects and the automotive industry, along with continued supply chain challenges, kept prices elevated. Limited availability of pine oleoresin, port congestion, and rising production costs added further strain, pushing manufacturers to procure materials at higher prices. Despite these challenges, the market remained buoyed by steady demand, particularly in export markets.
By March, prices rose by an additional 3.3%, driven by firm export activity, particularly from China, and reduced domestic availability. The construction sector showed moderate recovery, and the automotive sector continued to experience steady growth. Supply constraints and strong export demand ensured that prices remained high, ending the quarter with continued upward pressure. Overall, Q1 2025 was characterized by tight supply and strong demand, leading to sustained price increases.
APAC
Gum rosin prices in Indonesia witnessed a consistent rise throughout Q1 2025, largely influenced by constrained supply and elevated input costs. The quarter began with a significant price jump of 5.5%, driven by reduced production, higher raw material expenses, and global freight challenges. Despite sluggish demand from adhesives, automotive, and construction sectors, the tight market conditions pushed prices upward. Lower domestic consumption was unable to offset these pressures, highlighting the dominance of supply-side factors.
The momentum continued into the following month with a 4.3% increase, supported by a modest rebound in demand from the adhesives and automotive industries. Although the construction sector remained weak, domestic manufacturing growth and heightened purchasing activity helped sustain the upward price movement. Manufacturers faced mounting cost pressures from rising input prices and inefficient supply chains, which kept the market environment tight and pricing firm.
Prices edged up another 1.7% toward the end of the quarter, driven mainly by limited raw material availability and environmental constraints affecting pine tapping. Even as downstream demand from PVC, paints, and coatings sectors softened, restricted supply remained the primary force behind price stability. The manufacturing sector’s continued expansion and pre-emptive inventory stocking reflected optimism but also highlighted the challenges of balancing demand fluctuations with persistent supply limitations.
Europe
In Q1 2025, gum rosin prices in Europe experienced a steady upward trend, influenced by supply-side constraints and sustained demand across key sectors. The quarter commenced with a notable price increase, driven by tightening supply conditions and rising raw material costs. Despite economic challenges, demand from industries such as adhesives, coatings, and construction remained robust, supporting the price surge.
Throughout the quarter, logistical disruptions and limited pine oleoresin availability continued to strain supply chains, contributing to elevated prices. Import prices reached their highest levels due to longer transit times and high shipping costs, exacerbated by global shipping challenges. These factors, coupled with reduced domestic production, kept the market tight and prices elevated.
Demand from downstream sectors remained steady, with the adhesives and coatings industries maintaining consistent procurement levels. However, the construction sector showed signs of cautious improvement, contributing to overall market stability. Looking ahead, while supply constraints may ease slightly, the combination of steady demand and ongoing logistical challenges suggests that gum rosin prices in Europe will remain elevated in the near term.
For the Quarter Ending December 2024
North America
In Q4 2024, the gum rosin market in North America showed a generally positive price trend. Prices began to recover in October, supported by increasing export demand, particularly from Europe and the US. Tightening supply conditions in China, including weather-related disruptions and logistical challenges, contributed to upward pressure on global prices, which impacted the North American market as well. This export-driven recovery helped maintain positive price momentum despite relatively weak domestic demand.
By the mid of quarter, however, the price growth began to slow. While international demand from Europe and the US remained robust, domestic consumption in North America continued to face challenges. Industries such as automotive, construction, and coatings were still feeling the effects of economic headwinds, which limited the domestic uptake of gum rosin. This subdued local demand, combined with easing supply-side constraints, led to a slight dip in prices.
By December, the market stabilized, with prices holding steady due to sustained export-driven growth. While domestic consumption remained weak, the ongoing recovery in international markets kept the North American gum rosin market relatively stable, concluding the quarter with only moderate price fluctuations.
APAC
In Q4 2024, the gum rosin market in the APAC region, particularly in China, experienced a mixed price trend. Prices saw a recovery in October, largely driven by tightening supply conditions. Adverse weather, such as monsoon leaf fall disease, and logistical disruptions at key ports created production bottlenecks, pushing prices higher despite sluggish domestic demand.
Export activity, especially to Europe and the US, provided additional support, helping offset the weak local consumption. By November, prices began to dip slightly. Domestic demand remained low due to persistent economic pressures, limiting growth in key industries like automotive and construction. While export demand continued to rise, it wasn’t enough to counterbalance the subdued local market. Improvements in supply conditions, including the easing of logistical bottlenecks, contributed to price stabilization, preventing further sharp increases.
By the end of the quarter, the market stabilized, with prices holding steady. Export-driven demand continued to provide support, even though domestic consumption remained constrained. Overall, the gum rosin market in Q4 2024 saw only slight price variations, with the rebound in global demand being a significant factor in keeping the market stable.
Europe
In Q4 2024, the gum rosin market in Europe continued to showcase increased price momentum, driven primarily by strong export demand and tightening global supply conditions. Prices began to rise in October, supported by robust international demand, particularly from the US, and supply disruptions in key producing regions like China. Adverse weather conditions and logistical bottlenecks in China contributed to production constraints, pushing up prices in Europe as global supply became more limited.
However, in November, the market experienced a slight dip in prices. While export demand remained steady, domestic consumption in Europe did not see significant improvement. The ongoing economic challenges in various sectors, including automotive and construction, kept demand levels subdued. Despite this, the overall international demand, especially from the US, continued to provide upward pressure on prices, preventing a sharp decline.
In the end of Q4, the European gum rosin market stabilized, with prices maintaining a steady level. The strong export-driven demand, particularly from the US, kept the market buoyant, ensuring that prices remained relatively stable despite the lackluster domestic consumption. The quarter concluded with moderate price fluctuations, largely influenced by international market dynamics.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American gum rosin market exhibited a mixed pricing trend marked by price fluctuations driven by changing demand and production costs. Initially, the market remained stable; however, a decline in demand from critical sectors such as paints, coatings, and adhesives led to a bearish outlook. Elevated inventory levels, coupled with inadequate support from feedstock costs, contributed to a downward pressure on prices.
While some sectors, particularly automotive and construction, showed signs of recovery, these improvements were insufficient to significantly elevate gum rosin prices. Market participants remained cautious, with many expecting continued price declines. However, as the quarter progressed, a shift occurred in the second half, with prices starting to rise as downstream industries increased their purchasing and restocking efforts in anticipation of future demand.
This shift indicated a potential stabilization in the market, although concerns regarding broader economic conditions lingered. Overall, Q3 2024 highlighted the complexities facing the North American gum rosin market, shaped by fluctuating demand and evolving production cost dynamics.
APAC
In Q3 2024, Gum Rosin prices in China experienced a notable rebound after two months of decline. In July, prices fell due to sluggish demand from the automotive and construction sectors, combined with high inventories and limited support from falling Pinewood prices. Sellers resorted to discounts, leading to bearish market sentiments. However, in August, prices began to rise, driven by increasing upstream costs and improved demand from the paints and coatings industry, spurred by a recovery in the automotive sector. Limited inventories and heightened procurement activities from the US and India also contributed to this upward pressure. Additionally, exports surged as manufacturers rushed to fulfil orders ahead of anticipated tariffs, despite weak domestic demand. Overall, Q3 2024 saw a shift from bearish to bullish sentiments in the Gum Rosin market, with August marking a significant turnaround in price dynamics amidst improving demand conditions. In China specifically, the pricing trend exhibited a consistent upward trajectory throughout Q3 2024. The quarter recorded a notable percentage change of 8 % from the previous quarter, with a further 6 % increase noted between the first and second halves of the quarter. The quarter-ending price for Gum Rosin in China stood at USD 1207/MT, reflecting the prevailing positive sentiment in the pricing environment.
Europe
In Q3 2024, the European Gum Rosin market exhibited a mixed pricing trend, influenced by fluctuating demand and varying production costs. Following a stable pricing phase, market dynamics shifted as manufacturers faced declining demand from key sectors such as paints, coatings, and adhesives. This led to a bearish sentiment in the market, with prices softening due to high inventories and insufficient support from feedstock costs. The market's outlook remained cautious, with many participants doubting the potential for a short-term price recovery. Although some sectors, particularly automotive and construction, showed signs of increased activity, this did not significantly boost Gum Rosin prices, which continued to reflect downward pressure from subdued demand. However, the second half of the quarter brought a change in momentum as prices began to recover, driven by renewed interest from downstream industries and restocking activities in anticipation of future demand. This uptick suggested a potential stabilization in the market, albeit tempered by lingering concerns over broader economic conditions. Overall, Q3 2024 demonstrated the complexities of the European Gum Rosin market amid contrasting demand signals and production cost dynamics.
South America
In Q3 2024, the Brazilian Gum Rosin market experienced a mixed pricing trend, primarily driven by weak demand fundamentals. After a bullish rally in June, prices fell in July due to sufficient inventories and limited cost support from declining feedstock Pinewood prices. Despite some improvement in demand from the paints, coatings, adhesives, and rubber sectors, the impact on Gum Rosin prices was minimal. By August, bearish sentiment persisted as many market participants expressed skepticism about short-term price recovery. Although there was increased offtake from downstream industries, particularly in automotive and construction, this did not translate into significant price gains. The overall production costs remained low, further contributing to downward price pressure. However, this was followed by a rise in prices in September. In Brazil, the pricing trend was mixed throughout the third quarter of 2024. The quarter showed a significant percentage change of -1.5% from the previous quarter, with an additional 2% increase observed between the first and second halves of the quarter. The price for Gum Rosin in Brazil at the end of the quarter was USD 981/MT, reflecting the pricing environment's mixed trend.
For the Quarter Ending June 2024
North America
Gum Rosin prices have continued to show an upward trend across the US market supported by improved demand dynamics and limited inventories. The feedstock Pinewood prices have increased, resulting in the high production cost of Gum Rosin, supporting the prices to follow an uptrend in the domestic market.
On the demand front, despite the high mortgage rates the inquiries from the downstream paints and coating, adhesives, and sealants as well as from the rubber industry have increased due to a rise in consumption from the key end-user automotive and construction sector, keeping the prices elevated in the domestic market. As per the market sources, new residential construction in the US rebounded in the month of April although the report also unexpectedly showed a continued decrease in building permits. Additionally, housing starts surged by 5.7 percent to an annual rate of 1.360 million in April after dropping by 16.8 percent to a revised rate of 1.287 million in March. On the other hand, consumer prices increased less than expected in April, suggesting that inflation resumed its downward trend at the start of the second quarter in a boost to financial market expectations for a September interest rate cut.
In addition, the availability of Gum Rosin was restricted due to low domestic production and slow imports from the Asian market which further uplifted the prices of Gum Rosin. At the same time, Ocean freight rates from Asia to the North American west and east coasts have seen a notable increase, with rates rising by approximately 10%. This increase is in line with the general upward trend observed since the beginning of the month, keeping the prices upward.
Asia- Pacific
Gum Rosin prices have witnessed a mixed signal across the Asian market during the second quarter of 2024. During early and mid-Q2 of 2024, Gum Rosin prices have strengthened in the Chinese market due to constrained supply. The cost support from feedstock Pinewood was sufficient for Gum Rosin as its prices were observed on the higher end amid tight supply in the domestic market, contributing to the bullish market sentiment of Gum Rosin among the manufacturers. The demand for Gum Rosin from the downstream paints and coating, rubber and adhesives, and sealants industry was moderate throughout the month due to steady consumption from the automotive and construction sectors in the domestic market. Most market transactions were mainly based on immediate requirements. According to the China Passenger Car Association, sales of passenger vehicles were 1.55 million units in April, down 9.6% from March. In the meantime, purchasing activity from the overseas market has increased amid restocking activities which prompted the manufacturers to raise their export prices. According to customs data, China’s exports returned to growth in April, suggesting that demand improved despite an uneven economic recovery. The report showed exports grew 1.5% in April compared to a year earlier, after falling 7.5% in March. Furthermore, the operating rates of manufacturing firms had not fully rebounded, as a result, material availability was limited to meet the downstream demand. Many manufacturing firms shut down for maintenance during the May Day holiday, leading to decreased production. The material availability was limited to meet the existing downstream demand, keeping the prices upward in the domestic market.
However, towards the end of Q2 of 2024, Gum Rosin prices dropped as buyers’ appetite remained weak, with broader macroeconomic pressure continuing to limit the need for material from derivative sectors. Also, consumers were heard to be buying hand-to-mouth as a result of weakness in downstream industries.
Europe
Gum Rosin prices have witnessed an upward trend across the German market during the second quarter of 2024. Tightening supply conditions were the main driver behind the price rise, even though demand remained under pressure from economic challenges. The domestic operating rates have remained low since Q1 of 2024 in response to a decline in downstream demand, leading to the limited availability of Gum Rosin in the domestic market.
At the same time, import prices have reached their highest levels as longer transit times and high shipping costs stemming from the Red Sea attack caused a series of notable hikes. Additionally, spot ocean freight charges from Asia to Europe surged well ahead of contract rates as vessel capacity tightened even more owing to the ongoing Red Sea crisis. As per the market sources, freight charges from Asia to North Europe were settled at $4,000/FEU, following adverse weather and congestion at Chinese ports, keeping the prices elevated across the domestic market.
On the macroeconomic front, the annual inflation rate in Germany edged up to 2.4% in May 2024, compared to a three-year low of 2.2% in each of the previous two months. The firm inflationary pressure has further dampened consumer buying sentiments. Meanwhile, demand for Gum Rosin from the downstream paints and coating, adhesives, and sealants as well as from the rubber industry has remained average as consumption from the key end-user automotive and construction sector was below seasonal expectation. Though, it was insufficient to drive the price realization of Gum Rosin.
South America
Prices of Gum Rosin have showcased mixed sentiments across the South- American market during the second quarter of 2024. During early Q2 of 2024, Gum Rosin prices have strengthened in the Brazilian market. The demand for Gum Rosin from the downstream paints coatings, and adhesives industry has increased throughout the month as consumption from the end-user automotive sector was improved, contributing to an upward shift in the price realization of Gum Rosin in the domestic market. At the same time, demand from the overseas market has also improved which further promoted the manufacturers to increase their prices. Apart from this, the cost support from feedstock Pinewood was sufficient for Gum Rosin as its prices settled on the higher end in the domestic market, leading to bullish market sentiment for Gum Rosin among the manufacturers. Furthermore, the material availability was limited to meet the existing demand, keeping the prices upward in the domestic market.
After witnessing a bullish rally, Gum Rosin prices dropped in the middle of Q2 of 2024 as demand from the downstream industry declined from both domestic and international markets which weighed down the prices of Gum Rosin. Moreover, the supply of Gum Rosin has started to improve throughout the quarter, which further supported the prices to follow a downward trend in the domestic market.
However, the Gum Rosin market ended June on a firm note in the domestic market, marking a departure from the downtrend observed over the mid-Q2 of 2024. The high feedstock of Gum Rosin was the major factor for the price increase in the domestic market. Furthermore, the demand from the downstream derivative industry recovered towards the end of the quarter, which encouraged the manufacturers to raise their prices.
