For the Quarter Ending September 2022
Tall Oil Rosin prices have continued to decrease in the North American region throughout the third quarter of 2022, backed by weak demand dynamics and a continuous drop in feedstock prices. Demand from the downstream adhesives, paint, and coating industries has dropped amid the high inflation rate. Meanwhile USA, supply dynamics remained under pressure as the major exporting port of Houston witnessed port congestion, resulting in the limited availability of the material in the domestic and overseas markets. However, low offtakes from the European and other importing countries resulted in little influence on the overall price dynamic of Tall Oil Rosin. As a result, the price of Tall Oil Rosin plunged by 4-5% during September 2022.
Tall Oil Rosin prices have witnessed a downward trajectory in the Chinese market during the third quarter of 2022. Sufficient inventory levels and a drop in feedstock prices resulted in a sharp bearish trend. Demand from the downstream paint and coating adhesives industries has been lackluster. At the same time, demand from the overseas market has also dropped amid a slowdown in global economic activity. Further, China's battle with Covid in Q3 2022 as the market activities remained under constant threat of covid related disruptions. At the same time, port activities were also halted due to the rise in covid cases. As a result, Tall Oil Rosin FOB Huangpu prices dropped by approximately 3-4% during September. On the other side, in the Indian market, Tall oil Rosin prices showed mixed trends due to fluctuation in the demand dynamics. During July, prices dropped by 1.7% due to weak demand from the downstream industries amid sufficient inventory levels. However, prices have increased due to limited imports from exporting countries like China, resulting in restricted material availability. Demand from the downstream paint and coating, and adhesives industry has improved. Hence, as a result, prices of Tall Oil Rosin Ex- Kandla were assessed at USD 1793/MT during September 2022.
During the third quarter of 2022, Tall oil Rosin prices have gained downward momentum in the European market owing to the weak feedstock prices. A steady flow of cheap imports from Asia and the USA has contributed to the price drop in the regional market. Demand from the downstream adhesives, paint, and coating industries has declined due to sluggish consumer sentiments in the European region. Although, Supply dynamics remained under pressure owing to port congestions and labour strikes. Netherlands, Belgium, and Germany witnessed major port congestions, while the UK observed weeks of labour strikes which limited the availability of the material in the domestic market. Although, weak demand ensured the limited impact of the reduced supply on the prices. Hence, as a result, prices of Tall Oil Rosin dropped by 3-4% in Germany during September 2022.