For the Quarter Ending December 2022
North America
Gum Rosin prices have witnessed a downtrend in the USA market throughout the fourth quarter of 2022, supported by ample inventory and weak demand dynamics. Consumer sentiment has decreased, which has been perceived by the contraction in the Manufacturing Purchasing Index, which dipped below 50 (i.e., 49.7) in November, signifying a reduction in both industrial and manufacturing activity. In addition, cheap imports from Asia lead to sufficient material availability in the regional market. On the other hand, demand from the downstream adhesives, paints, and other competitive industries has remained subdued amid off-season dullness, supporting the decline in the price realizations of Gum Rosin in the USA market.
Asia-Pacific
Gum Rosin prices have shown mixed sentiments in China during the fourth quarter of 2022. During the first two months, Gum Rosin prices dropped owing to weak cost pressure and sluggish demand. Feedstock Pinewood prices dropped, easing the overall production cost. Meanwhile, demand dynamics remained under pressure amid frequent lockdowns in the country due to Covid. In addition, the performance of the downstream adhesives and other competitive industries has been underwhelming, and the volume offtakes remained weak, while ample material availability level led to the price drop of Gum Rosin. Although, during the last month, Gum Rosin increased due to the limited material availability and improved demand from both domestic and international markets.
Europe
Gum Rosin prices dropped in the European market during the fourth quarter of 2022 due to bearish downstream demand while the material availability increased. Meanwhile, the sharp decline in freight charges resulted in better-imported material available in the regional market. Additionally, natural gas prices stabilized in the European market after the upheaval in Q3, which softened the production cost of Gum Rosin. Meanwhile, demand from the downstream adhesives, paints, and coating, along with other competitive industries, remained muted throughout the quarter due to sluggish buying sentiment and the slow growth of the key industries. Furthermore, inflation has eased during Q4. As per the data, inflation in Germany plunged from 10.1% to 9.1% in December compared with the previous month.
For the Quarter Ending September 2022
North America
Gum Rosin prices in the North American region constantly deteriorated throughout the third quarter of 2022 owing to weak demand dynamics and consistent fall in feedstock prices. Since the beginning of the Russia- Ukraine war, the West has been under constant threat of a recession. The speculations around a US recession intensified in Q3 as the inflation rates surged while consumer sentiment deteriorated significantly. The persistent speculation of a recession meant weak consumption rates of adhesives, paint and coating, and other downstream products of Gum Rosin. In addition, sufficient inventory level to cater to the domestic demand. Hence, as a result, prices of Gum Rosin in the USA declined by 4-5% during September 2022.
Asia- Pacific
Gum Rosin prices have gained downward momentum in the Asia- Pacific region throughout the third quarter of 2022. Sufficient inventory levels and consistent fall in feedstock prices resulted in a sharp bearish trend. Demand from the downstream paint and coating adhesives industries has declined. At the same time, demand from the overseas market has also dropped amid a slowdown in global economic activity. In addition, China's battle with Covid continued in Q3 2022 as the market activities remained under constant threat of covid related disruptions. Furthermore, Port activities were also halted due to the rise in covid cases. As a result, Gum Rosin FOB Huangpu prices were assessed at USD 1825/MT during September. On the other side, Japan and South Korea witnessed supply disruptions as typhoons disrupted trading activities and halted port activities. Although, the inventory levels remained stable to firm amid weak consumption rates from downstream industries.
Europe
Gum Rosin prices have continued to fall in the European market during the third quarter of 2022. The latest price decline was attributed to the steady flow of cheap imports from the exporting countries. The speculation of recession across Europe has dampened the demand from the downstream paint and coating, adhesives, and allied industries. According to the Eurostat data, inflation in Europe increased by 7.1% during August. In addition, Eurozone Manufacturing Purchasing Index (PMI) fell from 49.6 points to 48.5 points in September 2022. Also, the inflows of new orders fell as demand for Gum Rosin fell. As a result, prices of Gum Rosin in Germany were lowered by more than 6 % during September 2022.
