With the arrival of hot summer in August in main gum rosin producing province in the south of China, gum rosin market come to an other cross way. In the last August, gum rosin market began to enter into a slight upward trend, but the situation is quite different in 2006, with the current high price of gum rosin, the market situation in August is possibly quite different to those in last August, every party in the industry is very cautious for the future market, also the market in August is still not so clear.
First, the output of gum rosin in August is larger than other month. Raining weather begin to shrink after July in the south China and the weather condition is the most idea for pine oleoresin (crude gum) tapping. The output of gum rosin in August definitely increases against July, but the increase volume is still unclear.
Second, possibility of sharp fluctuation is little in August. After the adjustment of gum rosin price in June and July, the price of gum rosin basically keeps at about 8500RMB/to (ww grade, steam method, Pinus Massoniana) in recent; manufacturers, exporters and users temporally accept the current price. With the increase output of gum rosin in August, it is difficult for the price to goes up sharply. However, the anticipation for the price sharp drop in August is possibly unreality, the cost of raw material (crude gum) is difficult to drop down to 6400RMB/ton. It is reported that once some gum rosin manufacturers lowered down the procurement price of pine oleoresin below 6400RMB/ton in June and July, but the procurement volume was very limited. With relative high expectation and cost increase, pine oleoresin (crude gum) producers will stock up theirs products for sometime when the price drop down under theirs expectation. Certainly, gum rosin price will drop down in certain for short time if supply of pine oleoresin increase rapidly in short term.
Thirst, state of mind of manufacturers, exporters and users are stable under current price level and market situation. The price level of 8000-9000RMB/ton (ww grade, steam method, Pinus massoniana) in Huangpu port is temporarily accepted by manufacturers, exporters and users. The market keeps stable for sometime under current price level and trading is more active than previous. According to statistic from Chinese Customs, the export volume increase rapidly in June when the price came down from over 10000RMB/ton in May to about 8500RMB/ton in June.
By market team of www.rosin-china.com (Chinese version) www.rosinnet.com (English version)