Introduction: Recent domestic rosin prices have continued to rise modestly, with downstream demand increasing significantly, which in turn has driven higher production output.
During the week, Masson pine rosin prices declined while slash pine rosin prices rose. The main reason is that Masson pine rosin is in its production season, leading to greater market supply and consequently weaker prices, with mainstream prices ranging from 11,800 to 12,400 yuan/ton. For slash pine rosin, as its production season has not yet started, market participants are mostly digesting existing inventory. Additionally, downstream rosin resin orders are gradually recovering, boosting purchasing volumes. Rosin producers remain reluctant to sell, and slash pine rosin prices continue to rebound, with mainstream prices holding at 11,300 to 11,800 yuan/ton.
First, the rise in slash pine rosin prices has pushed up costs. Second, demand for end products such as tapes has increased. Rosin resin manufacturers have seen a concentration of orders, leading to a significant rise in operating rates. However, downstream buyers have shown weak acceptance of price increases, so the rebound has been relatively slow.
In terms of petroleum resins, mainstream prices for adhesive-grade C5 petroleum resin rose by 500 yuan/ton to a range of 9,500–12,000 yuan/ton. Decarboxylated C5 petroleum resin transaction prices increased by 300 yuan/ton to 8,800–9,700 yuan/ton, with overall transaction prices moving upward. Meanwhile, hydrogenated petroleum resin prices climbed to 12,500–13,000 yuan/ton. Some petroleum resin producers have suspended offers, and spot supply is extremely limited, prompting a portion of demand to shift toward rosin resin.
Comparing rosin resin and petroleum resin prices over the past two years, since their downstream applications largely overlap and rosin resin has unique characteristics, product prices have strong downside support. Moreover, output is insufficient, and rosin supply is difficult to increase, making rosin resin primarily used for essential applications. This year, international oil prices have surged sharply, causing periodic supply shortages of petroleum resin, which has further intensified the short-term impact on rosin resin. This month, operating rates for adhesive C5 petroleum resin remained at around 60%, while rosin resin output rose to a multi-year high. Under the influence of intermittent supply shortages and a bullish sentiment, downstream purchasing increased noticeably.
Overall, demand both domestically and abroad has been relatively cautious due to the chaotic situation in the Middle East. Therefore, although the current round of downstream demand remains fairly rational, low inventory levels from earlier destocking have driven a rise in periodic procurement. Combined with the periodic shortage of petroleum resin and the difficulty in replenishing supply, the usage of rosin resin has increased significantly, pushing prices further upward.
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