Introduction: Recently, domestic rosin prices have declined to around 10,600 CNY/ton and are consolidating at this level. As the resin harvesting season nears its end, supply volumes have increased. Coupled with terminal demand remaining limited to essential needs only, rosin resin prices have weakened.
Within the week, Masson pine rosin prices rose while slash pine rosin prices pulled back. The primary driver was the diversion of some Masson pine resin into the slash pine resin stream, exacerbating tightness in on-site supply and pushing Masson pine rosin prices up by 100 CNY/ton. Conversely, as the slash pine resin harvest season approaches its final stage, increased bulk deliveries from mountain areas boosted supply, causing slash pine rosin prices to fall to the range of 10,500–10,700 CNY/ton.
Regarding rosin resins, order status varied across manufacturers, with larger producers holding more concentrated orders. End-users maintained procurement strictly for essential needs. Since related auxiliary material prices remained high, negotiated prices experienced slight downward drifts, though the room for further decline is limited.
Petroleum resin segment: The mainstream price for C5 petroleum resin used in adhesives stood at 12,000–13,500 CNY/ton. Transaction prices for de-cyclic C5 petroleum resin were 10,800–11,600 CNY/ton. Although quoted prices for hydrogenated petroleum resin remained at 13,500–14,000 CNY/ton, actual transaction prices mostly settled between 13,000–13,500 CNY/ton. Overall supply from petroleum resin manufacturers continues to gradually recover. With end-users limiting purchases to essential needs, supply tightness has eased. Additionally, declining prices for raw materials (C5/C9) have fostered bearish sentiment among end-users, leading to weaker market trading activity.
It is expected that the tightness in petroleum resin supply will significantly alleviate by the second half of November. Recent sustained declines in international oil prices have reduced end-user procurement enthusiasm. Some adhesive factories reported order reductions of approximately 20%. The drop in essential demand has led to a slight accumulation of petroleum resin inventories overall. Consequently, the hot-melt coating sector saw initial minor price softening, which is expected to gradually transmit to the adhesive market, creating overall bearish pressure on raw materials.
In summary, since rosin production is still ongoing, supply volumes are set to expand. Downstream buyers exhibit strong price-suppression sentiment, maintaining procurement solely for essential needs. High risk-aversion sentiment among end-users has also kept purchasing limited to essentials, with spot inventory turnover days dropping to their lowest levels in recent years. Both upstream and downstream sectors remain weak. Combined with the weakening trend of substitute product petroleum resin prices, rosin resin prices are expected to continue their downward trajectory. Attention should be paid to the progress of US-Iran negotiations; any disruptions therein could cause short-term sharp rises in international oil prices, significantly impacting petroleum resin raw materials.
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