Market trending stable

The first week after the May day holidays, both gum rosin and turpentine oil market were relatively stable, market change was not large. There were still some small quantity of crude gum come out from Yunnan province and prices continue to show slightly falling. Details are as the below:

The gum rosin market: there were only 3 working days in the week. Market was relatively stable. Till the end of the week, the ref. Prices for ww grade masson (Guangxi source) at Huangpu port was remained at around RMB11,800Yuan/MT(Around USD1,860, price change some in USD for the change of exchange rate), some individual prices for very good quality supply were at around RMB12,000Yuan/MT. The prices in other regions, such as Fujian etc., the main stream were at around RMB11,600Yuan/MT. According to related market research, the current inventory was already not large, factories seemed unwilling to do the selling if prices were too low, and some still quit insist of their own target. Besides, there were already some few quantity of new crude gum come out to the market in some area of Guangxi, the collecting prices were at around RMB11.6/kg, such prices were not low, so according to such crude gum collecting prices level, the space for gum rosin price continue to fall seems not very large.

As to the elliottii, prices continue to keep stable in the week. The offer in Jiangxi province remained at around RMB10,100~10,200Yuan/MT(Around USD1,590~1,605), it is already quite difficult to find low price supply. The market mentality was also quite stable.

As to the Yunnan province, the supply was still mainly WG, and prices was at around RMB10,900(Around USD1,715). Although already entering the off season, while there were still some small quantity of new crude gum come out to the market, considering the cost problem, in order to avoid the future market risk, factories decreased the crude gum collecting prices so to reduce the production cost. And there were still some low price deal in this area.

In overall, the gum rosin market was trending stable after the May day holidays, both side of selling and buying seems quite stable in mentality. It is still around one month for the new season come, people who in the market were operated according to their own situation. As to the derivatives producers, after some months’ consumption, seems the current inventory were already not large. But considering the pressure of new season, their purchase were still quite cautious. But there also view think that, because of the not large inventory, if demand from derivative producers increase obviously, there is still the possibility for prices appear some rebound before the new season come.

Turpentine oil market: The turpentine oil market after the May day holidays did not appear obvious change. But there were still some individual purchase in the market, which had brought quite some of the support for the turpentine oil prices remained at the high level. Some factories still expecting even higher prices, but for downstream users, such high prices seems already quite hard to accept. Purchase side were quite cautious. While because of the small market supply, the current turpentine oil prices were still quite strong, and the market was steady.

As to the future market situation, because the current prices were still in the historical high level, it seems that the acceptance for such high level is also limited, so the demand from downstream users seems will also decrease some according. So factories still need to keep cautious so to avoid that turpentine oil prices appear suddenly collapse. But considering it is still quite some time for new turpentine oil come out to the market, seems the current market risk still not very large.

In overall, the mentality after the May day holidays were fairly stable. Some people continue to keep wait and see. Considering the downward pressure of new season come, a few factories start to became more active to do the selling, but still not very urgent to sell and quite insist of their own offer. As to the purchase side, as the market trending stable, some buyers accept the current prices gradually and start to do some proper purchase. It is estimated the market of next week might continue to keep relatively stable with slightly adjustment in some of the regions.

Ⅰ. WW grade gum rosin purchase prices at Huangpu port (domestic price, not FOB price) at weekend. 

Ⅱ.Super grade Turpentine oil price (Ex factory price, not FOB price) at weekend

Ⅲ. Crude gum (pine oleoresin market condition)—Pine oleoresin purchasing price in every region.

Note: 1. The above purchase price is domestic price. Export price should be added foreign traders' profit and customs clearance/commodity inspection and so on. (Among them, fees of customs clearance /commodity inspection are about USD 30 per MT.)

Exchange rate:  1USD=6.30 on Apr. 28^th,  1USD=6.35 on May 4^th, 2018