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.
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.
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.
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.
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.
With prices of Gum Turpentine continuing to firm, we have reports indicating that downstream producers are only buying what they need to fulfill firm orders. Producers of Gum Rosin and Gum Turpentine are keeping their offers firm due to the shortfall in crude gum produced.
There are suggestions that a major producer has not yet reopened causing prices to rise as stocks tighten. There are also suggestions that feedstock has become an issue. Prices have firmed.
There are reports that a major Catechol producer has closed. This has caused prices to firm.
Firming trends for Gum Rosin and Gum Turpentine continue. New harvesting has ceased due to cold weather. Derivative prices like Iso Bornyl Acetate, Dihydro Myrcenol, and Camphor USP among others have all increased.
The pricing of Gum Rosin in China continues to firm as production in southern China is off. Chinese Turpentine prices though, have softened. Reports state that the last of the Pine Oleoresin has arrived in the spot market so small and medium Gum Resin plants have sold Turpentine for cash. This cash is meant to purchase Oleoresin to produce Rosin.
The same reports state that the average export price in October was $2430/ton as opposed to $1910/ton in September. Likewise, the export of Pinenes from China in October increased by 5.66% over September. Borneol prices rose in October by 7.9% over September but are down by 30% from the same time last year. Camphor USP prices have also risen and are expected to continue to rise in early 2017. Iso Bornyl Acetate has also experienced a price increase.
Reports state that Gum Rosin prices continue to trend upwards as availability of crude is limited. Pricing of Turpentine has softened slightly as several large Gum Rosin plants have sold in order to raise cash to procure more rosin. We have not yet seen an impact on Derivative pricing. Levels have stayed stable against pricing in October.
Low petroleum prices, currency changes, and overproduction have caused prices for both items to soften.
China has begun to produce this material again and prices have stabilized. Shipments should arrive in late December and become available in January.
On the week of October 15th two typhoons, Sarika and Haima, both struck China. The resulting heavy rains hampered production in the Pine growing regions. There are also reports that several Gum Rosin plants were damaged. These influences have caused Turpentine prices to rise dramatically. We have seen offers for Dihydro Myrcenol, Iso Bornyl Acetate, and Camphor Powder all jump this week. It is believed that this trend will continue for the foreseeable future.
Allyl Amyl Glycolate is still tight as a factory is currently still in the trial phase of producing this ingredient. Relief is expected sometime in December.
A major supplier’s factory has recently been closed, reportedly due to pollution. The production freeze due to the G20 Summit, the implementation of pollution controls in China, and Hanjin’s bankruptcy have all contributed to the current shortfall in this ingredient. Prices have escalated and stocks are limited.
Reports from China indicate that inventories of Gum Turpentine are low. Prices have subsequently firmed.
Our most recent report from August 22nd continues to advise that Gum Turpentine prices are firm. In Yunnan Province most processors of Gum Resin have temporarily ceased production as demand is off. Those producing Gum Turpentine are reportedly sold out and no spot Turpentine is available. We have seen some pricing on derivatives such as IBA reflect this, and expect to see more price increases.
Manufacturers are citing several reasons for the current shortage of this material in China. Firstly, a multinational has purchased a large amount of Cedarwood unexpectedly, causing a shortage and dramatic price increase for raw material. Rain in the growing regions has prevented harvesting, contributing to the price rises and availability issues. The situation is expected to persist for several more months.
Our most recent report from July 23rd advises that new demand for Gum Resin has changed the dynamics of the market. Pricing has stabilized, reversing a trend of softening over the last few weeks. While processors are hoping to see the downward trend continue, the report states that Gum Resin Manufacturers are keeping their offers firm. Gum Turpentine prices have remained stable except in Guangdong where they have increased. Prices for IBA, DHM, and Synthetic Camphor among others have begun to increase.
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