Gum Turpentine Market Update
Current Situation
The Gum Turpentine market changed quickly over the last two weeks. In the second half of September we have seen a sharp price increase and less material in the global market. There are several reasons driving these changes.
· There was less Gum Turpentine available due to less pine oleoresin available in the market.
· The tapping season was delayed due to COVID-19 and traders didn’t reach price levels that they felt comfortable with.
· Additionally the rainy season affected the overall oleoresin output.
· We also have to mention that a lot of speculators are holding back product to bring up the pricing even further.
These factors combined with some large volume orders of Gum Turpentine derivative manufacturers, especially Camphor producers, caused the price spike over the last 14 days. The pricing stabilized over the last few days due to national holidays in China. Please refer to Figure 1 for Gum Turpentine Price Development.
Gum Turpentine Price Development 2019-2020
Long-Term Outlook
The long-term outlook changed compared to our last report. The impact of Covid-19 combined with shortage of oleoresin might impact the price long-term. If the Pine Oil and GTO derivative market slows down, we may see prices come down or stabilize at current price levels.
Please refer to Figure 2 for Gum Rosin Price Development.
Gum Rosin Price Development 2006-2020