Prices for Gum Turpentine continue the upward trend. Downstream producers only ordering Gum Turpentine to fulfill contractual and firm orders so free stocks are limited.
Petroleum based, solvents such as Propylene Glycol, Dipropylene Glycol, and Diethyl Phthalate have all seen prices increase monthly. With summer months coming soon, demand for Propylene Glycol for deicing aircraft in the Northern Hemisphere will drop, so production will ease, putting further pressure on prices.
With reports of factories switching to other products due to environmental issues and the suspension of production due to Communist Party meetings mentioned above, pricing has escalated.
Ethyl Butyrate, Dimethyl Benzyl Carbinol, Butyric & 2-Ethyl Butyric Acid, 2-Methyl Butyric Acid, Iso Amyl Butyrate, Ethyl Iso Butyrate, Ethyl-2-Methyl Butyrate to name a few, have seen prices increase.
With Petroleum prices in the low $60’s feedstock prices stay firm. Competition has kept prices competitive but eventually producers will need to make profits.
With China celebrating their Lunar New Year, markets there were quiet. Gum Rosin plants are reportedly holding prices firm, believing this to be a bullish market. With the situation in India prices are expected to continue to climb.
With petroleum prices rising, prices for both items are increasing due to their feedstocks being petrochemicals.
With major producers limited to less than half of their normal output due to environmental controls, prices are climbing as availability is limited.
The recent reports we have received continue to advise that prices for gum turpentine are firm. IBA prices are firm and odor quality issues are beginning to surface. For Camphor Gum a major producer is limiting production of both USP and DAB, prices are increasing weekly. For Dihydromyrcenol several factories in China and India claim to be overbooked. No relief is expected until April/May but material is offered at very high prices. Terpineol demand has outstripped supply and prices have climbed.
Due to aggressive competition among producers, prices here have been stable but with upward pressure should anything change.
A major producer remains closed and/or with limited production as not all pollution controls are in place. Material is not available.
The major factory that produces Natural Methanol has been closed by the Chinese government. This has caused production of U.S. Natural Maple Lactone to cease. European Natural Maple Lactone is also limited and is more than double the price of U.S. Natural.
We have been advised that the major producer of this material has been forced to close due to pollution, therefore Natural Ethyl Butyrate as well as Natural Butyric Acid prices have risen and availability is limited. There is hope that pollution controls will be in place sometime in November and production can resume then.
Major producer in China has had factory closed for a variety of reasons, including pollution. Prices have escalated. Very limited and restricted production is reported to be starting soon in December / January, but it will take time to fill pipelines as inventories are minimal.
We have been advised that Resin/Adhesive producers have switched to cheaper petrochemicals from Gum Rosin. With less demand for Rosin, less Gum Turpentine has been produced, leading to ever increasing prices. This has caused serious problems in the market place.
- Iso Bornyl Acetate – with factory closings in China and lack of feed stocks, prices have soared. An Indian producer has advised that he cannot fulfill open orders, and is offering one FCL in an auction.
- Dihydro Myrcenol – closures in China, unfulfilled demand incredibly short worldwide.
- Camphor Gum USP – one of the largest producers in China has ceased production. Feedstock issues.
- Terpineols, Terpinyl Acetates – prices up.
With the major producer still shut down these two are short. There are no offers on Maltol coming from China, and Ethyl Maltol continues to be limited with prices climbing weekly.
The latest report we have (September 23rd) advises that prices for Gum Turpentine in all three growing regions increased from the prior week. It also states stocks of Gum Turpentine are low and processors are holding off waiting for higher prices.
The major producer in China was forced to stop production due to tightening regulations. While now currently producing on a limited basis, available quantities are staying in the East, leaving the West short. This has caused stress on the western producers who run on campaigns and find it extremely difficult to alter production plans. Prices should be firm for some time.
Production at one of the three producing factories in China is in the process of being expanded. This expansion is supposed to be completed by late Autumn. While there are quantities available, prices are still high, and probably won’t soften until this producer is ready with his expanded capacity. Circumstances and actual demand will determine what will happen to prices.
With increasing costs and heavy rains in Southern China prices are firm. With strong worldwide demand for Turpentine we do not see prices easing until mid to late autumn.
Our most recent report (July 15th) is advising that Turpentine prices have stayed firm. Rain in the main Pine growing regions has not helped supply. This report also states that demand for derivatives is lackluster, as downstream plants reportedly have no urgent orders they need to cover. These plants expect prices to soften so are in no rush to buy at this time.
Prices remain high as production is still limited.
Gum Turpentine prices continue to firm in China, with reports indicating many plants have sold out their stock, while those with stock are staying firm on their offers. We have seen this trend continue with Iso Bornyl Acetate, Camphor USP, and Dihydro Myrcenol to name a few derivatives. We have also been informed that one factory has been closed due to pollution.
With stocks in the hands of dealers, prices continue to firm. We have been advised that new production in China might begin August/September which will alleviate the shortages. We have also been advised that this new production will hopefully bring prices back to “normal” levels.
In line with our introduction we have been informed that two factories producing this product have been closed. We expect to see prices jump.
Prices for Gum Turpentine continue to firm. We have seen offers for Camphor Gum, Iso Bornyl Acetate, Dihydro Myrcenol, Terpineols, Alpha Terpinene, and Gamma Terpinene all escalate.
With a major producer forced to close permanently because of their second explosion in a year, both products are extremely short. Other factories have not been able to increase production without the Chinese government’s approval and ensuring that additional polluted wastes are not generated. As such, prices have escalated.
Reports continue to advise there is enough demand in the market to keep prices for Gum Turpentine firm. Additionally there is a new inquiry for a very large quantity of Iso Bornyl Acetate that has caused prices to rise 20% in one day. Expect this trend to continue.
Feedstocks are still limited and pollution continues to be a concern. Additionally, an Indian group purchased a major Chinese producer causing a change to the market. Offers are limited and prices continue to rise.
With a major producer closed by the government both products are extremely short. Resellers who have stock are allocating their inventory causing prices to escalate. This is a very difficult situation which will last for some time.
The last report we received prior to this writing had “Gum Turpentine Rocketing” as a headline. The reported cause of this increase in demand is that several derivative producers started ordering large amounts in order to fulfill contractual requirements.
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