Gum Turpentine Market Update

January 21, 2021

Compared to the steep price increase between late September 2020 and late November 2020, we have seen price of GTO begin stabilizing. The main driver is market price, which has reached a level where downstream users might wait for better prices to buy. Some derivate producers were able to divert to CST based production. With bidding season over, demand has slowed down. Expectations are this price level will continue for a while due to increased shipping cost and shipping space availability. Also the currency exchange rate especially USD/RMB has a big influence on the pricing compared to 6 months ago. Please refer to Figure 1 for an in-depth look at the price development of Gum Turpentine.

Figure 1: Gum Turpentine Price Development 2019-2021



Long-Term Outlook

Most GTO producers are putting their forecast for better pricing April-June. The tapping season, especially for producers from Brazil and Indonesia, was very disappointing due to very dry season (Brazil) and very wet season (Indonesia). The availability of oleoresin during tapping season will create a better output for GTO production. Combined with better availability of shipping space and reduced cost of ocean freight we may see prices coming down in Q2 2021. We have to watch the currency development as this might work against general price reductions. For historical pricing on Gum Turpentine and Gum Rosin, please refer to Figure 2 and Figure 3 below.

Figure 2: Gum Turpentine Price Development 2006-2021



Figure 3: Gum Rosin Price Development 2006-2021