Gum Turpentine Market Update

Current Situation

The GTO market has seen a quick upward trend over the last 6-8 weeks.

Initially there was a lower output of oleoresin in China compared to last year, which caused a price increase. The demand for downstream products like Camphor kept strong and Gum Rosin/GTO plants kept pushing up the price. Since Chinese material was tight, buyers procured material from other countries like Brazil, Indonesia and Vietnam. GTO producers from other countries kept pushing up the price rapidly and we think speculation inflated the price. Tight shipping space from several origins and increased shipping costs have contributed to higher pricing as well. The GTO price has stabilized around 60% higher compared to 3-4 months ago. Please refer to Figure 1 for price development on Gum Turpentine.

Gum Turpentine Price Development (2019-2020)
Figure 1: Gum Turpentine Price Development (2019-2020)

Future Outlook

Overall demand for Gum Rosin and/or GTO Derivatives will be the most important factor when looking for the price to come down or stabilize further. We have seen demand slow down on Gum Rosin, but have yet to see demand drop for derivatives.

As we go through bidding season for next year’s contracts, there are big volume inquires that may hold the price up for the time being.

This might change in Q1 2021 and if we see less pressure on the supply chain, then the situation might relax further. For historical price trends on Gum Rosin and Gum Turpentine, please refer to Figure 2 and Figure 3 below.

Gum Rosin Price Development (2006-2020)
Figure 2: Gum Rosin Price Development (2006-2020)
Gum Turpentine Price Development (2006-2020))
Figure 3: Gum Turpentine Price Development (2006-2020)