For the Quarter Ending March 2025
North America
Throughout Q1 2025, tall oil rosin prices in the USA consistently rose, driven by increasing crude tall oil costs and persistent supply constraints. Early in the quarter, prices saw a 5.0% increase, primarily due to higher upstream crude tall oil prices, which led manufacturers to adjust their production strategies. Demand from key downstream sectors such as paints, coatings, adhesives, and rubber remained steady, while the automotive sector contributed to maintaining overall consumption levels.
As the quarter progressed, price increases continued, supported by higher crude tall oil costs. Despite mixed demand from downstream industries, the automotive sector remained a key driver of consumption. Supply remained stable, but logistical challenges and reduced production rates created tight market conditions. Manufacturers carefully managed output to avoid significant price hikes, balancing rising costs with steady demand from various sectors.
By the end of the quarter, supply-side constraints, along with continued demand from the automotive sector, pushed prices up further. The construction sector faced challenges due to tariff-induced cost pressures, but the overall market sentiment remained firm. The combination of tight supply, rising feedstock costs, and steady demand from emerging sectors, such as bio-based applications, helped sustain upward price pressure throughout Q1 2025.
APAC
Throughout Q1 2025, tall oil rosin prices in the APAC region, particularly in India, experienced a consistent upward trend, primarily driven by elevated import costs from the USA. The quarter began with a 5.0% price increase in January due to rising upstream crude tall oil prices and the country’s reliance on higher-priced U.S. imports. Despite steady demand from sectors such as automotive, adhesives, coatings, and paints, supply constraints and global logistics challenges kept the market tight.
In February, prices continued to rise by 1.0%, supported by increased demand across key sectors, including adhesives and automotive, coupled with the ongoing impact of high import costs from the U.S. However, procurement remained cautious as buyers closely monitored pricing trends. By March, prices surged further by 4.0%, driven by continued high import costs and limited domestic availability. The construction sector showed moderate demand due to seasonal purchasing patterns, but overall consumption in downstream sectors remained steady.
Throughout the quarter, while demand remained stable, tight supply conditions and rising global prices led to higher tall oil rosin prices, with downstream industries managing rising expenses through cautious procurement strategies. The market outlook for Q2 2025 suggests that continued global pricing trends will heavily influence future price movements.
Europe
In Q1 2025, the price trend of Tall Oil Rosin (TOR) in Europe was characterized by a continued downward movement, primarily driven by weak demand across key downstream sectors. In January, prices remained steady but low, as demand from industries such as paints, coatings, adhesives, and rubber remained subdued. The European construction sector also showed signs of slowing down, impacting the overall consumption of TOR.
Throughout the quarter, supply-side constraints continued to affect the market. Despite challenges such as high international freight charges and disruptions caused by the ongoing Red Sea crisis, the impact on local prices was limited. Refinery closures and reduced fractionation rates in both the U.S. and Europe added pressure on supply, but these factors did not significantly disrupt the market due to the lack of strong demand from downstream industries.
Overall, the European TOR market in Q1 2025 was marked by a subdued outlook, with weak demand from major industrial sectors and persistent supply-side issues contributing to the price trend.
For the Quarter Ending December 2024
North America
In Q4 2024, tall oil rosin prices experienced a persistent downward trend, driven by a combination of weak demand and oversupply. Stagnation in the North American pulp and paper industries led to high inventory levels, reducing pressure on raw material availability.
Demand from key downstream sectors, including coatings, adhesives, and automotive, remained muted, further exacerbating the price decline. In Asia, particularly India, the appreciation of the US dollar against local currencies increased import costs, curbing purchasing activity. Global economic uncertainty also dampened industrial production, with the U.S. manufacturing sector, a key consumer of rosin-based products, facing significant slowdowns.
Despite these challenges, December showed signs of slight recovery, with seasonal demand picking up in adhesives and ink production. However, this improvement was insufficient to counteract the overall bearish trend for the quarter. Looking ahead, a modest recovery is expected in Q1 2025 as inventory levels normalize and industrial demand gradually rebounds, providing some upward momentum to prices. Thus, the prices remained subdued throughout Q4 2024.
APAC
In Q4 2024, tall oil rosin (TOR) prices in India saw a consistent decline, driven by weak demand from key sectors like automotive, adhesives, and packaging, alongside global supply constraints. The slowdown in the automotive industry, characterized by reduced vehicle production and sales, significantly impacted the consumption of rosin-based products, including coatings and adhesives. Additionally, a stronger US dollar made imports more expensive, further curbing demand. On the supply side, global crude tall oil (CTO) fractionation rates dropped by 30% due to refinery closures in the US and Europe, tightening TOR availability worldwide. Despite increased pulp imports and steady performance in certain paper-related sectors, oversupply conditions in the domestic market pressured prices downward. Logistical challenges in global shipping and reduced industrial activity across construction and printing ink sectors further contributed to the bearish trend. While December brought slight seasonal demand improvements in adhesives and inks, they were insufficient to offset the broader downward momentum. Overall, TOR prices in India remained under pressure due to economic challenges and global supply disruptions.
Europe
In Q4 2024, tall oil rosin (TOR) prices in Europe followed a downward trend, influenced by weak industrial demand and global supply constraints. The automotive sector, a significant consumer of TOR for coatings and adhesives, faced sluggish recovery, dampening demand across the region. Additionally, broader industrial slowdowns in packaging and printing sectors further suppressed TOR consumption. On the supply side, the reduction in crude tall oil (CTO) fractionation capacity by 30%, following refinery closures in the US and Europe, tightened availability. However, seasonal trends during this period typically see higher demand for adhesives and printing inks, particularly in December, which provided marginal price support toward the end of the quarter. Despite this, elevated inventory levels, weak downstream activity, and economic pressures across Europe maintained overall bearish sentiment. Furthermore, higher energy costs and logistical disruptions added to the challenges, limiting significant price recovery. While December saw slight stabilization due to seasonal demand, TOR prices in Europe remained largely subdued, reflecting global supply-demand imbalances and regional economic constraints.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American Tall Oil Rosin market experienced a period of decreasing prices, primarily influenced by a combination of factors. Market conditions were significantly impacted by comfortable inventories, weak demand fundamentals, and ongoing disruptions like plant shutdowns, which hampered supply chains and contributed to a bearish sentiment. The USA, being a key player in the region, witnessed the most substantial price changes. The market trend in the country reflected a downward trajectory, with prices declining by 2% from the previous quarter. The overall pricing environment exhibited a negative sentiment, with the correlation between decreasing demand from key end-user sectors like automotive and construction and the softness in downstream industries driving prices lower. Despite some seasonal variations, the quarter saw a consistent decrease in prices. The latest quarter-ending price for Tall Oil Rosin CFR Texas in the USA stood at USD 905/MT, marking the culmination of a challenging period characterized by downward pricing pressure.
APAC
In Q3 2024, the APAC region witnessed a challenging period for Tall Oil Rosin pricing, characterized by a significant decline in market values. Several key factors contributed to this downward trend. Firstly, a notable decrease in demand from various downstream industries such as adhesives, rubber, and paper pulp exerted pressure on prices. The slowdown in construction activities due to the monsoon season further dampened demand, leading to excess supply in the market. Additionally, high raw material costs and increased freight expenses added to the cost burden for buyers, discouraging additional purchases. In India, which experienced the most pronounced price changes, the quarter saw a consistent decrease in Tall Oil Rosin prices. The overall trend reflected a negative sentiment, with prices recording a significant drop from the previous quarter. The quarter-ending price of USD 1067/MT Ex-Kandla highlighted the challenging pricing environment that prevailed throughout the period. Overall, disruptions such as plant shutdowns further exacerbated the pricing pressure, underscoring the unfavorable conditions faced by the Tall Oil Rosin market in Q3 2024.
Europe
In the third quarter of 2024, the European Tall Oil Rosin market experienced a significant trend of declining prices, largely influenced by several interconnected factors. The market was notably impacted by ample inventories, weak demand fundamentals, and persistent disruptions, including plant shutdowns that hindered supply chains and contributed to a bearish market sentiment. Within Europe, substantial price shifts were observed, particularly in major markets such as Germany and France. These countries reflected a downward trajectory, with prices decreasing by approximately 2% compared to the previous quarter. The overall pricing landscape in Europe displayed a negative sentiment, primarily driven by reduced demand from critical end-user sectors, including automotive and construction, which directly affected downstream industries reliant on Tall Oil Rosin. Despite some seasonal fluctuations, the quarter consistently maintained a downward trend in prices, signaling ongoing challenges within the market. The latest figures underscore the pressing need for recovery strategies aimed at stabilizing prices and enhancing demand. As industry stakeholders navigate these difficulties, fostering collaboration and exploring new market opportunities will be crucial for restoring balance and ensuring long-term sustainability in the European Tall Oil Rosin sector.
For the Quarter Ending June 2024
North America
Prices of Tall Oil Rosin have continued to experience an uptick in the US market during the second quarter of 2024 owing to depletion in inventory level and a significant increase in freight expenses. The demand for Tall Oil Rosin from the downstream paints and coating, rubber as well as from the adhesives and sealants industry has moderate due to steady consumption from the automotive and construction sector.
Most market transactions were mainly based on a need-on-demand basis. Meanwhile, imports from the Asian market have been reduced on the US market amid port congestion brought on by the weather disruption as well as the Red Sea crisis, resulting in high freight charges and delayed shipments. Additionally, US container import spot rates from both North Asia and Southeast Asia hubs have reached their highest levels in nearly two years, with knock-on effects from Red Sea diversions now compiling significant capacity problems for East Asian shipping lanes.
As per market sources, from the Asia-Pacific to US West Coast, market average spot rates are expected to reach USD 5,170/FEU, which would surpass the Red Sea crisis peak of $4,820/FEU seen on 1 February while from the Asia-Pacific to US East Coast, spot rates are expected to reach USD 6,245/FEU, only slightly shy of the Red Sea crisis peak of USD 6,255/FEU and an increase of 50% since 29 April. The availability of Tall Oil Rosin was tight, keeping the prices upward in the domestic market. Thus, prices of Tall Oil Rosin CFR Texas were settled at USD 944/MT during June 2024.
Asia- Pacific
Tall Oil Rosin prices have showcased fluctuation in the Asian market during the second quarter of 2024. In India, prices of Tall Oil Rosin declined during the early of 2024. The demand for Tall Oil Rosin from the downstream paper and pulp as well as from the tire industry has been average, leading to a downward shift in the price realization of Tall Oil Rosin in the domestic market. The spot market transactions were also average as the eagerness of terminal firms to enter the market was not strong. Furthermore, a major producer of the downstream tire industry MRF has reported a surprise drop in its fourth-quarter profit as the tire maker faced pressure from a spike in rubber prices. Furthermore, market players report supply of Tall Oil Rosin was ample in the Indian domestic market which was keeping them away from the import offers. The last quarter witnessed an uptick in offers from China, but buyers mostly ignored the higher levels resulting in high-end prices disappearing in the recent quarter.
However, towards the last quarter of 2024 Tall Oil Rosin prices have strengthened in the domestic market owing to ongoing freight rates stemming from vessel congestion. The demand for Tall Oil Rosin from the downstream paints and coating, adhesives, as well as from the rubber industry has improved amid strong consumption from the automotive and construction sector, leading to an upward shift in the price realization of Tall Oil Rosin in the domestic market. Meanwhile, the imports from the Chinese market have slowed down as bad weather particularly fog in Chinese ports like Shanghai and Ningbo has caused significant vessel delays of up to a week at key gateways in the region. Furthermore, Ocean rates for Far East trades to India have seen a three- to four-fold gain throughout the quarter as the congestion plaguing major transshipment hubs in the region continues to keep vessel schedules and space availability under tremendous pressure. As per the market source, average spot rates from Shanghai to Nhava Sheva or Mundra in West India stand at $3,860 per TEU and $4,260 per FEU, up from the $1,085 and $1,185, respectively, in the second half of May. Overall, market sentiment remained bullish throughout the quarter. Thus, as a result, prices of Tall Oil Rosin Ex- Kandla were settled at USD 1143/MT during June 2024.
Europe
Tall Oil Rosin prices have inched higher 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, resulting in the supply shortage in the domestic market.
On the other hand, 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 upward in the domestic market.
Moreover, 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 diminished the end-user demand. However, demand for Tall Oil Rosin from the downstream paints and coating, adhesives, and sealants as well as from the rubber industry has remained tepid as consumption from the key end-user automotive and construction sector was below seasonal expectation. Also, demand from the packaging industry has also decreased throughout the quarter, though it had a minimal impact over the prices of Tall Oil Rosin.
