gum rosin market

Transcription

gum rosin market

2013 China Gum Rosin Market Annual Report
Made by SCI Industrial Development Branch
GUM ROSIN MARKET
Hotspots
1. Global market economy underperformed and bulk commodity products got bogged down, while gum
rosin prices went upward with the numbers hiking nearly by RMB 6,000/mt in Q3, 2013.
2. China domestic gum rosin prices were inferior to foreign goods prices.
3. As a kind of natural chemical feedstock, gum rosin’s position in future market is unbreakable, coupled
with global advocating of green environmental protection and gradually shrinking resources in China..
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Content
Part 1 2013 Gum Rosin Market Retrospect ........................................................................ 4
1.1 2013 Gum Rosin Price Experienced “Steady-to-Rising” Stance ...................................... 4
1.2 2013 Gum Rosin Industry Profit Ratio and Cost Analysis ................................................ 5
1.2.1 Gum Rosin Industry Cost Analysis ..................................................................... 5
1.2.2 2013 Gum Rosin Industry Profit Rose ................................................................ 6
1.3 2011 - 2013 China Gum Rosin Market Contrast .............................................................. 6
1.3.1 2011 - 2013 Gum Rosin Price Trend Contrast .................................................... 7
1.3.2 Analysis of Factors Affecting Gum Rosin Prices in Past Years ............................ 7
Part 2 Gum Rosin Supply Structure and Change Trend Analysis .......................................... 8
2.1 Global Gum Rosin Capacity Distribution Structure ......................................................... 8
2.2 2013 China Gum Rosin Capacity Supply Structure .......................................................... 9
2.2.1 2013 China Gum Rosin Output Analysis (by Producing Areas).......................... 9
2.2.2 2013 Gum Rosin Enterprise Production Situation Analysis ............................. 10
2.2.3 2013 China Gum Rosin Inventory Stat. & Analysis .......................................... 10
2.3 Low-priced Imported Gum Rosin Impacted China Market ............................................ 11
2.3.1 2013 Gum Rosin Import Analysis (by Countries) ............................................. 11
2.3.2 2013 Gum Rosin Import Analysis (by Customs)............................................... 12
2.3.3 2013 Gum Rosin Import Analysis (by Provinces) ............................................. 12
2.4 Gum Rosin Production Technology Development Structure ......................................... 13
Part 3 Gum Rosin Upstream Feedstock Structure ............................................................. 13
3.1 2013 Pine Oleoresin Market Review ............................................................................. 13
3.2 Pine Oleoresin Market Supply Structure ....................................................................... 14
3.2.1 2011 - 2013 Pine Oleoresin Output Contrast .................................................. 14
3.2.2 2013 Pine Oleoresin Output Stat. & Analysis (by Producing Areas) ................ 15
3.2.3 Reasons for Large Decline in 2013 Pine Oleoresin Output .............................. 15
3.3 2014 Pine Oleoresin Output Forecast............................................................................ 16
3.4 2014 Pine Oleoresin Cost Forecast ................................................................................ 16
Part 4 Gum Rosin Demand Structure ............................................................................... 17
4.1 2011-2013 China Gum Rosin Demand Structure Analysis ............................................. 17
4.2 2013 Gum Rosin and Related Products Export Demand Analysis ................................. 17
4.2.1 Gum Rosin Export Data Analysis...................................................................... 17
4.2.2 Turpentine Oil Export Data Analysis ................................................................ 20
4.2.3 Rosin Resin Export Data Analysis ..................................................................... 22
Part 5 Gum Rosin Downstream Demand Structure .......................................................... 24
5.1 2013 Rosin Resin Industry ............................................................................................. 24
5.1.1 2013 Rosin Resin Market Review (taking 138# ester gum as an example) ..... 24
5.1.2 China Rosin Resin Output and Distribution Areas ........................................... 25
5.1.3 China Rosin Resin Downstream Demand Structure ........................................ 28
5.1.4 2011 - 2013 Rosin Resin Demand Contrast for Gum Rosin ............................. 28
5.2 Gum Rosin Demand from Other Downstream Industries ............................................. 29
5.2.1 Adhesive Industry Production & Demand for Gum Rosin ............................... 29
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5.2.2 Coating Industry Production & Demand for Gum Rosin ................................. 30
5.2.3 Printing Ink Industry Production & Demand for Gum Rosin ........................... 31
5.2.4 Dyeing Industry Production & Demand for Gum Rosin ................................... 31
5.2.5 Synthetic Rubber Industry Production & Demand for Gum Rosin .................. 32
5.3 Substitutes’ Influence on China Gum Rosin Market ...................................................... 32
5.3.1 Increased Petroleum Resin Demand ............................................................... 32
Part 6 2014 Gum Rosin Market Trend Forecast ................................................................ 33
6.1 2014 Gum Rosin Market Supply Structure Forecast ...................................................... 33
6.1.1 China Gum Rosin Output Forecast .................................................................. 33
6.1.2 Gum Rosin Import Volume Forecast................................................................ 34
6.2 2014 Gum Rosin Market Demand Pattern Forecast ...................................................... 34
6.2.1 Gum Rosin and Related Products Export Volume Forecast ............................. 34
6.2.2 China Gum Rosin Downstream Demand Forecast........................................... 35
6.3 2014 Industrial Policies’ Influences on Gum Rosin Market ........................................... 36
6.4 2014 Gum Rosin Price Trend Forecast ........................................................................... 36
Appendix: Chart & Table ................................................................................................. 38
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Preface
Gum rosin market in 2012 kept low with prices hovering at RMB 10,000/mt; by comparison,
the market in 2013 unexpectedly displayed a roller-coaster trend like that during 2010 - 2011
and participants were caught unprepared.
This report will help you avoid market risks in advance by reviewing 2013 China gum rosin
market and forecasting the market trend in 2014.
Part 1 2013 Gum Rosin Market Retrospect
1.1 2013 Gum Rosin Price Experienced “Steady-to-Rising” Stance
Huangpu WW Grade Gum Rosin Price Trend (Steam Method)
Pinus Massoniana Gum Rosin
RMB/mt
Pinus Elliottii Gum Rosin
17000
Pinus Kesiya Gum Rosin
16000
15000
14000
13000
12000
11000
10000
9000
8000
Chart 1 2013 Huangpu Gum Rosin Price Trend
Overall gum rosin market experienced a “steady-to-rising” stance in 2013, with prices
stabilizing at RMB 10,000/mt firstly, going up to RMB 17,000/mt later, then shifting down to
RMB 14,500-14,000/mt, rebounding marginally later and then correcting at RMB 15,000/mt
around.
Extending the stable note in end-2012, gum rosin market fluctuated within the range of RMB
100/mt in H1, 2013 due to the combination of low demand and high cost.
Gum rosin market kept rising from July and reached RMB 17,000/mt in mid-October, up 55%
from RMB 11,000/mt before the production season, as pine oleoresin prices unexpectedly rose
on large contractions in output and bullish gum rosin electronic trade also boosted gum rosin
market.
However, the round of increases in Q3 was only a periodic rebound as gum rosin market faced
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excess capacity and potential demand slowed down. Therefore, with pine oleoresin production
season coming to a close, gum rosin market stocks were increasingly heavy; moreover, gum
rosin manufacturers suffered tight capital and rough sales, under such climate, gum rosin
prices kept decreasing to RMB 14,500/mt. Though gum rosin prices bottomed out later, the
market lacked upward momentum on weak rigid demand; especially heading into December,
affected by tight capital at manufacturers, gum rosin prices were range-bound and stabilized at
the end of the year.
1.2 2013 Gum Rosin Industry Profit Ratio and Cost Analysis
1.2.1 Gum Rosin Industry Cost Analysis
Gum Rosin Cost Proportions
2%
1%
2%
Safety production cost
Market risk control cost
Direct production cost
95%
Cost of interpersonal
relationship management
Chart 2 Gum Rosin Cost Proportions
Safety Production Cost (2%): Safety management plays the most important part in enterprise
production. A series of sudden calamities, like fire and floods, will result in a stagnation of
production. Healthy safety management is the prerequisite for normal production, which can
benefit the sustainable and stable development.
Market Risk Control Cost (2%): Uncertain market risks undoubtedly have a fatal attack on
enterprises, which might suddenly result in the bankrupt of enterprises. Therefore, it is of great
importance to control market risks. Taking a Yunnan-based plant for example, it finally chose to
reshuffle due to the worse control over market risks.
Direct Production Cost (95%): The direct production cost occupies the largest portion and is
also the key part of the producers’ cost. It contains factors such as feedstock, labor, water,
electricity and coal, traffic, tax, etc. Change of any factor will change production cost directly.
Pine oleoresin cost plays an important role in impacting the direct cost of gum rosin.
Purchasing price of pine oleoresin directly affects the profit of gum rosin production; besides,
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the quality of pine oleoresin largely impacts the yield of gum rosin. Therefore, controlling the
expense of pine oleoresin is crucial to cut the cost of gum rosin. Otherwise, the processing
technology and varieties of trees also closely relate to the gum rosin yield. Usually, 1.31mt of
Pinus Massoniana pine oleoresin can produce 1mt of gum rosin and 180kg of turpentine oil;
1.38mt of Pinus Elliottii pine oleoresin can manufacture 1mt of gum rosin and 280kg of
turpentine oil; 1.33mt of Pinus Yunnanensis pine oleoresin can manufacture 1mt of gum rosin
and 180kg of turpentine oil.
Cost of Interpersonal Relationship Management (1%): Interpersonal relationship plays a
rather significant part in current society. The relationship with the customers, competitors and
the government even concerns the survival of an enterprise. Favorable interpersonal
relationship is the best supplement to the enterprises.
1.2.2 2013 Gum Rosin Industry Profit Rose
2013 Gum Rosin Profit Analysis
Profit
Pine oleoresin cost
Gum rosin selling price
Turpentine oil selling price
Others
RMB/mt
20000
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
RMB/mt
1500
1000
500
0
-500
-1000
Chart 3 2013 Gum Rosin Profit Analysis
After the downturn in 2012, pine oleoresin market started to jump from the traditional
production season in 2013, with prices rising to RMB 14,000/mt from the lowest RMB
8,200/mt; though prices inched down later, they closed at RMB 12,000/mt around in most
producing areas. Most tapping workers and contractors were profitable, especially contractors.
Gum rosin manufacturers saw higher profit this year, especially from the first and last batches
of pine oleoresin. Considering large contractions in output this year, they either adopted a
watching stance or sold based on their actual situations, and even when gum rosin prices
declined later, some remained bullish about the coming market with a wait-and-see attitude.
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1.3 2011 - 2013 China Gum Rosin Market Contrast
1.3.1 2011 - 2013 Gum Rosin Price Trend Contrast
RMB/mt
24000
2011 - 2013 Huangpu WW Grade Pinus Massoniana Gum Rosin
(Steam Method) Price Contrast
2011
2012
2013
22000
20000
18000
16000
14000
12000
10000
8000
Chart 4 2011 - 2013 Huangpu Gum Rosin Price Contrast
Seen from the above chart, China gum rosin market in 2011 kept at highs in Q1 but showed a
“Waterloo-type” trend later; the market in 2012 kept a low level; the market in 2013 improved
slightly with prices staying flat in H1 but in a see-saw battle from Q3.
1.3.2 Analysis of Factors Affecting Gum Rosin Prices in Past Years
Industry Background: In 2011, pine oleoresin and gum rosin output was high, as many people
blindly contracted pinewood and tapped pine oleoresin in end-2010 and early 2011 driven by
large rises in gum rosin prices in 2010. In 2012, though many participants suffering negative
margin previously stepped out of the industry, gum rosin market still faced an oversupply as
gum rosin output and stocks cardinal numbers remained large. In 2013, pine oleoresin output
contracted largely as many contractors and tapping workers successively retreated from the
industry given volatile gum rosin market situations in 2012 - 2013.
Macro Economy: 2011 - 2012 saw ongoing European debt crisis and US economic depression.
In 2013, European economy showed rallying signs, but remained volatile; the US suffered debt
crisis with economic expansion slowing down; other economies showed economic downturn,
and therefore, under the condition of global economic recession, bulk commodity market
would be unlikely to get out of the predicament in a short run.
Demand: Downstream demand showed a largely shrinking note in recent years affected by
global economic slowdown and lower operating rates at end-users; moreover, the export was
further pressured by high domestic prices. Users at home and abroad gradually turned to buy
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relatively cheap goods from other countries as China gum rosin market was volatile during
2011 - 2013 and the future trend was unclear. Therefore, the export volume went down, but
the imports headed up. Additionally, considering highly volatile gum rosin market, some
enterprises taking gum rosin as feedstock successively changed production technology or
turned for other substitutive products with cheaper prices.
Market Confidence: Affected by sluggish gum rosin market situation during 2011 - 2012,
contractors and tapping workers were unconfident of the market in 2013 and retreated from
the industry, accordingly, gum rosin manufacturers mostly expected a stable market in 2013;
nevertheless, with the production season coming, pine oleoresin supply showed no large
improvement, under the condition of tight feedstock supply and eased inventory pressure,
manufacturers were increasingly bullish about the future market.
Part 2 Gum Rosin Supply Structure and Change Trend Analysis
2.1 Global Rosin Capacity Distribution Structure
Global Rosin Capacity Distribution
4%
Gum rosin
Tall oil rosin
30%
66%
Wood rosin
Chart 5 Global Rosin Capacity Distribution Pattern
Rosin is a solid form of resin obtained from pine trees. There are three types of rosin: gum
rosin, wood rosin and tall oil rosin according to different feedstock sources and production
technologies. Global rosin output is largely stable at 1,200kt in recent years, therein, gum rosin,
tall oil rosin and wood rosin occupy 66%, 30% and 3-4% respectively. Major producing
countries are China, the US, Indonesia, Brazil, India, Vietnam and Russia.
Global rosin output totaled 1,000kt in 2013. Tall oil rosin output stood at above 300kt, mainly
coming from the US, Russia, etc. Its output kept an uptrend. By comparison, gum rosin output
went down this year, caused by output contractions in China and Indonesia.
China: China remains the world’s biggest gum rosin producer. The output was as high as 700kt
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in 2012 and slipped to 430kt around in 2013, but China still plays a dominant role in the world.
China mainly exports gum rosin to East Asia, Southeast Asia, Europe, etc.
Brazil: Brazil pine oleoresin resources kept an uptrend in 2013 and gum rosin output was
expected to be around 90kt. Driven by jumped gum rosin prices in China this year, Pinus Elliottii
gum rosin prices in Brazil moved up and even hit $2,900-3,000/mt in November, 2013. The
country mainly exports Pinus Elliottii gum rosin to West Europe with the annual export volume
at 50kt.
Indonesia: Pinus merkusii is the major tree species. Output there suffered contractions this
year and is expected to slide 25% y-o-y to 50-60kt. Apart from minority for local
deep-processing enterprises, most are exported to Europe and China. China’s import volume
from Indonesia hit historical highs again in 2013.
Other Countries: Additionally, there are some countries with small output, such as Vietnam,
Argentina, Mexico, etc., and the total numbers are less than 100kt, therein, Vietnam has a
higher voice and the output there in 2013 is expected to be steady at 20kt.
2.2 2013 China Gum Rosin Capacity Supply Structure
2.2.1 2013 China Gum Rosin Output Analysis (by Producing Areas)
2010 - 2013 China Gum Rosin Output
kt
900
800
700
600
500
400
300
200
100
0
Chart 6 2010 - 2013 China Gum Rosin Output Statistics
China gum rosin output showed a gradually declining trend in recent years with output at
772kt, 697.2kt and 430kt in 2011, 2012 and 2013 respectively.
Gum rosin output in 2013 declined about 40% y-o-y and major reasons were as follows: firstly,
tapping workers successively retreated from the industry affected by sluggish market situation
during 2011 - 2012; secondly, contractors showed low contracting interest, resulting in largely
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shrinking contract areas; thirdly, output in Guangdong and Guangxi declined above 40%
affected by long-time rainy season and typhoon; fourthly, output in Jiangxi, Hunan, Hubei,
Guizhou, etc. slipped as the long-time draught in the production season affected the tapping
work.
2010 - 2013 Gum Rosin Output Statistics in Main Producing Areas
kt
300
2010
2011
2012
2013
250
200
150
100
50
0
Guangxi
Guangdong
Yunnan
Jiangxi
Fujian
Hunan
Hubei
Chart 7 2010 - 2013 Gum Rosin Output Statistics in Main Producing Areas
Seen from the above chart, Guangxi saw the largest reduction at 43%; Guangdong followed at
40%; Yunnan and Fujian followed at 30-35%; Jiangxi witnessed the smallest contraction at 30%
around.
2.2.2 2013 Gum Rosin Enterprise Production Situation Analysis
Affected by sluggish gum rosin market in 2012, limited pine oleoresin stocks were left to 2013.
In H1, 2013, manufacturers in Guangdong and Guangxi seldom operated and only minority
ones in Guangxi processed old pine oleoresin, but the volume was low. In Yunnan, despite of
pine oleoresin peak season, most manufacturers stopped their devices or took hiccup
production, affected by dry weather and low tapping activity.
When it came to H2, 2013, pine oleoresin supply remained tight in Guangdong, Guangxi, Fujian
and Jiangxi, and therefore, most gum rosin plants ran at low operating rates in June - July and
many successively resumed operation from August. Moreover, feedstock supply tightness
lasted for a long time.
2.2.3 2013 China Gum Rosin Inventory Stat. & Analysis
Gum rosin market was sluggish and pine oleoresin prices were low at RMB 8/kg in 2012, which
pressured tapping workers’ activity and reduced gum rosin output. Nevertheless, as gum rosin
prices fell to RMB 10,000/mt or so, domestic demand picked up; however, the left gum rosin
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stocks in 2011 were large and those in end-2012 hovered at 250kt, and therein, Guangxi,
Guangdong (including Huangpu stocks), Yunnan and Jiangxi occupied 70kt, 70kt, 30kt and 30kt
respectively.
When it came to 2013, pine oleoresin supply reduced largely and gum rosin prices jumped,
under such climate, gum rosin manufacturers were reluctant to sell at lows, leading to climbing
market stocks. Gum rosin stocks in early October stood at 200kt and were estimated at 180kt in
end-2013.
2.3 Low-priced Imported Gum Rosin Impacted China Market
2.3.1 2013 Gum Rosin Import Analysis (by Countries)
Table 8 2012 - 2013 Gum Rosin Import Analysis (by Countries)
Unit: kt
Indonesia
US
Brazil
Vietnam
2012
7.449948
0.214683
1.616009
0.135
2013
20.059064
4.104593
2.47443
2.4597
China’s gum rosin import volume totaled 30.4kt in 2013, up 206.63% y-o-y; the sum stood at
$47,615,559, up 171.34% y-o-y.
China mainly imported gum rosin from Indonesia, Brazil, the US and Vietnam. The import
volume from the above four countries reached 29.1kt in 2013, which occupied 95.67% of the
total. Import volume from those four countries gained markedly in 2013, especially the US and
Vietnam saw the growth speed of 1811.93% and 1722%. Imported resources from the US and
Vietnam are mainly tall oil rosin and Pinus merkusii rosin. On the whole, Indonesia is still the
major origin with 20.1kt of gum rosin exported to China in 2013, occupying 65.96% of the total.
Taking gum rosin imported from Indonesia as an example, monthly import volume was as high
as 3kt from July and the large increase was a result of sharply increased domestic prices at that
time. Therefore, downstream enterprises gradually turned to buy low-priced gum rosin from
other countries to cut cost.
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2.3.2 2013 Gum Rosin Import Analysis (by Customs)
2013 Gum Rosin Import Analysis (by Customs)
8.65%
Guangzhou
11.99%
Huangpu
50.83%
Nanning
28.53%
Others
Chart 9 2013 Gum Rosin Import Analysis (by Customs)
Guangzhou, Huangpu and Nanjing customs ranked the top three slots with import volume at
27.8kt in 2013, taking up 91.35% of the total import volume, which was attributed to relatively
centralized deep-processing enterprises and traders together with convenient transportation in
Guangdong and Guangxi.
2.3.3 2013 Gum Rosin Import Analysis (by Provinces)
2013 Gum Rosin Import Analysis (by Provinces)
1.90% 2.79%
3.62%
Guangdong
13.25%
Guangxi
Shanghai
78.44%
Shandong
Others
Chart 10 2013 Gum Rosin Import Analysis (by Provinces)
Guangdong and Guangxi were major importing provinces with import volume reaching 27.9kt
in 2013, occupying 91.7% of the total import volume. The above data showed that major
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customer bases centralized in the two provinces and deep-processing enterprises and traders
occupied a large part.
2.4 Gum Rosin Production Technology Development Structure
Steam method and dripping method are two production technologies of China gum rosin
currently; therein, the use of the former is the widest, while the application of the latter is
waning. The cost gap of these two methods is very large, which mainly lies in labor cost,
electric charge, etc. The production cost for manufacturers adopting the dripping method is
RMB 650-700/mt lower compared with the steam method.
However, there are many problems in the dripping method, such as high labor intensity, hard
operation, unstable product quality and easy inflammableness; moreover, pine oleoresin
quality declines seriously in recent years due to high impurity content existing in the feedstock;
it is mostly shipped by the iron drum and is easily adulterated. Therefore, many products
manufactured via the dripping method are off-grade.
Gum rosin yield of the dripping method is higher than that of the steam method (75% around).
Among 100 gum rosin manufacturers investigated by SCI, less than 10 plants use the dripping
method, which are mostly located in Anhui, Hubei, Hunan and other secondary producing
areas; by comparison, plants in main producing areas mostly adopt the steam method
currently. Therefore, the capacity proportion using the dripping method is relatively lower.
The dripping method is gradually replaced by the steam method, while the former still has
some markets especially in partial small-scale paint and adhesive factories. Therefore, the
dripping method will unlikely disappear in a near term but the gradual improvement will
become a trend.
Part 3 Gum Rosin Upstream Feedstock Structure
3.1 2013 Pine Oleoresin Market Review
Gum rosin market either kept a downtrend or corrected at lows in 2011 - 2012; demand kept
sluggish amid gloomy global economic outlook; China labor cost kept rising in recent years,
under such climate, pine oleoresin contractors were bearish about the market in 2013, and
therefore, pine oleoresin output in 2013 slid 40% y-o-y to nearly 600kt, accordingly, pine
oleoresin prices kept hitting new highs.
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2013 Pine Oleoresin Price Trend
RMB/mt
Guangxi pinus massoniana pine oleoresin
14000
13000
14150
Guangxi pinus elliottii pine oleoresin
Yunnan pinus kesiya pine oleoresin
12000
11000
10000
9000
8000
8300
Chart 11 2013 Pine Oleoresin Price Trend
Seen from the above chart, China pine oleoresin prices in the first half of 2013 kept low at RMB
8,000-9,000/mt with the lowest at RMB 8,300/mt in early May. Later, supply remained tight
even in production season, pulling pine oleoresin prices up persistently. In mid-October, as the
production season coming to a close, pine oleoresin market started to shift down and prices
slipped from the highest level of RMB 14,150/mt to RMB 12,000/mt in December.
In December, the pine oleoresin production in Guangdong and Guangxi ended successively, but
Yunnan was still in the production season. However, Yunnan pine oleoresin saw short supply, as
pine oleoresin output suffered large contractions and sellers were reluctant to sell at lows, thus,
plants in Yunnan had to raise buying prices to have sufficient feedstock; as a result, pine
oleoresin prices in Yunnan showed stepped increases in mid-December.
3.2 Pine Oleoresin Market Supply Structure
3.2.1 2011 - 2013 Pine Oleoresin Output Contrast
Table 12 2011 - 2013 Pine Oleoresin Output Contrast
Unit: kt
Year
Output
2010
865
2011
1,036
2012
933
2013
565
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Seen from table 2, China pine oleoresin output reduces year by year. 2012 output diminished
by 9.94% compared with 2011, and 2013 saw a reduction of 40% from 2012.
3.2.2 2013 Pine Oleoresin Output Stat. & Analysis (by Producing Areas)
Table 13 2013 Pine Oleoresin Output in Producing Areas
Unit: kt
Province Guangxi Yunnan Guangdong
Output
190
153.6
64
Jiangxi
Fujian
Hunan
Hubei
Others
68
48
16
16
20
Top 3 producing areas are still Guangxi Zhuang Autonomous Region, Yunnan Province and
Guangdong Province, followed by Jiangxi Province and Fujian Province. However, according to
incomplete statistics, the output in Guangxi reduced by 43% from last year, and that in
Guangdong shrank by 40%, and the number was 28% in Yunnan, 32% in Jiangxi and 40% in
Fujian.
3.2.3 Reasons for Large Decline in 2013 Pine Oleoresin Output
Firstly, gum rosin market slumped in 2011, so many contractors retreated from the market on
large losses. Based on that, 2011 pine oleoresin price hovered at a low level, and the meager
profits also discouraged contractors and tapping workers from participating further. In addition,
rising commodity prices and unchanged wages posed another damper to the market.
According to SCI statistics, the number of contractors in 2013 contracted 30% from 2012, and
that of tapping workers reduced by 30-50% or so.
Secondly, pinewoods aging and serious damage to cutting surface trimmed pine oleoresin
output. A pine tree needs about 15 years to own 16 - 20 centimeters of breast-height diameter,
while normal tapping cycle is 8 - 10 years. As a result, trees with higher economic benefit and
shorter growth cycle are much more popular, and only a few contractors insisted on planting a
certain amount of pine trees per year considering long-term development. Besides, some
tapping workers enlarge cutting surface to pursue more profits, posing serious damage to pine
trees’ normal pine oleoresin production.
Thirdly, weather also influences pine oleoresin tapping and production directly. The two major
producing areas, Guangxi and Guangdong were in the midst of heavy rainfall and typhoon
during April - October, which impacted pine oleoresin tapping schedule largely. When that bad
weather weakened after October, pine oleoresin tapping season drew to a close and the
weather turned cool gradually, so pine oleoresin yields were difficult to uplift.
Yunnan has suffered drought for four years since October, 2009. The pine oleoresin production
period in Yunnan is from November to April next year, different from the period starting from
May to November in other regions, but this year, the production period in Yunnan was the
driest season, and this will affect pine oleoresin yields to some extent.
Other producing areas are mainly located in East, Central and Southwest China, such as Jiangxi,
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Fujian, Hubei, Hunan, Sichuan, Guizhou, etc. The production season in those areas all
confronted dry weather, and high temperatures contracted tapping workers’ working hours as
well.
3.3 2014 Pine Oleoresin Output Forecast
Although pine oleoresin prices were highly beyond market expectation this year, contractors
operated at a measured pace with cooling enthusiasm to assure benefit maximization. What’s
more, contractors contracted workforce to save cost and avoid risks, so large increases in pine
oleoresin yields will be unlikely to happen. SCI predicted that total yields of pine oleoresin in
2014 will be marginally adjusted based on 2013 level.
3.4 2014 Pine Oleoresin Cost Forecast
Generally speaking, pine oleoresin cost mainly comprises labor cost and mountain contracting
cost.
Labor cost: Chinese labor cost is on the upswing with the development of economic
construction, and more and more young peasant workers prefer to find jobs in urban areas
rather than tap pine oleoresin which is hard and unprofitable. As a result, most producing
areas are faced with labor shortage, and the tapping workers are mainly 40 to 60 years old.
Based on SCI investigation, wages of most tapping workers are RMB 4-6/kg, and subsidies will
be given if bad weather deters pine oleoresin tapping, so labor cost is relatively high. In
conclusion, labor shortage and aging will continue pushing up labor cost.
Mountain contracting cost: The number of contractors decreased largely in 2013 influenced by
plunged gum rosin market in 2011 and ongoing depression in 2012. SCI knows that cost of one
pine tree is RMB 3-7 in 2013, and the number is a little higher in partial areas due to different
district, tree species and pine oleoresin production. Mountain contracting costs of some
contractors diminished somewhat in 2013 mainly because the pine trees were low-yield and
planted in poor terrain, while most contractors saw increased contracting costs from the
previous year.
High prices of pine oleoresin in 2013 stimulate enthusiasm of contractors, but labor cost and
mountain contracting cost will be hard to lower, so it is predicted that the cost of pine
oleoresin may climb within a limited range in 2014.
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Part 4 Gum Rosin Demand Structure
4.1 2011 - 2013 China Gum Rosin Demand Structure Analysis
Table 14 2011 - 2013 China Gum Rosin Demand Change
Unit: kt
Year
Output
Export
Domestic demand
2011
770
230
470
2012
700
170
530
2013
430
133.1
371
Gum rosin export descended gradually because European countries suffered debt crisis and
American economy was in the midst of slow recovery. In addition, gum rosin output increased
in foreign countries and export prices were lower than those from China, therefore China gum
rosin export is confronted with severe challenges. Gum rosin export volume in China was 367kt
in 2006 and fluctuated downward to 133.1kt in 2013. Gum rosin demand pattern at home and
abroad changed markedly.
4.2 2013 Gum Rosin and Related Products Export Demand Analysis
4.2.1 Gum Rosin Export Data Analysis
Table 15 2013 Gum Rosin Export Statistics
Month
1
2
3
4
5
6
7
8
9
10
11
12
Total
2013
Volume (kg)
11,455,179
6,347,619
10,499,621
8,989,457
13,579,900
8,915,942
8,344,388
9,035,066
13,550,125
14,908,678
15,970,350
11,540,169
133,136,494
Sum ($)
19,648,271
10,967,920
17,970,939
16,189,951
23,905,015
15,669,002
15,115,451
17,009,752
29,530,296
35,911,260
42,046,038
28,252,163
272,216,058
Y-o-y change
Volume
-17.02
-53.24
-22.14
-36.22
34.9
-32.23
-40.91
-21.08
-27.08
18.18
10.1
-36.82
-20.62
Sum
-10.58
-51.81
-19.03
-32.29
40.28
-28.75
-32.5
-1.62
8.08
101.28
85.19
-7.75
1.55
M-o-m change
Volume
-37.28
-44.59
65.41
-14.38
51.06
-34.34
-6.41
8.28
49.97
10.03
7.12
-27.74
--
Sum
-35.84
-44.18
63.85
-9.91
47.65
-34.45
-3.53
12.53
73.61
21.61
17.08
-32.81
--
According to the above table, only May, October and November enjoyed export upturn, and
17 / 39
the other nine months suffered export deterioration. The largest falling volume occurred in
February when the Spring Festival came, and in July when domestic gum rosin price hiked
rapidly. Influenced by golden September and silver October, gum rosin export volume kept
growing for three months, but the bleak export market didn’t change on that account. Export
sum jumped markedly in October and November due to higher price from a year ago, which
reversed the weak export sum situation.
4.2.1.1 Gum Rosin Export Analysis (by Destinations)
2013 China Gum Rosin Export Destinations
Portugal
4%
France
4%
the US
4%
Others
8%
Japan
30%
Germany
3%
Belgium
19%
South Korea
9%
India
11%
Australia
1%
Taiwan,China
6%
Thailand
1%
Chart 16 2013 China Gum Rosin Export Destinations
Japan stands first with 25.4kt of gum rosin import volume from China, and Belgium and India
rank the second and third respectively with import volume of 16kt and 10kt; Portugal’s import
volume declined largely.
Table 17 2012 - 2013 China Gum Rosin Export Destination Ranking
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sept
Oct
2012
Japan
Portugal
Belgium
India
South Korea
France
Taiwan
Germany
US
Spain
2013
Japan
Belgium
India
South Korea
Taiwan
US
Portugal
France
Germany
Thailand
In 2013, European economic reform still had a long way to go; American economic resurgence
mingled hope and fear, and economic slump weighed on China and Japan, which impacted
China gum rosin product export to a certain extent. What’s more, foreign traders turned to
low-priced resources of other countries instead of China resources due to sustaining high
prices in China in the second half of 2013.
18 / 39
Table 18 2013 China Gum Rosin Export Data
Country
Volume (kg)
Y-o-y change
Sum ($)
Y-o-y change
Japan
Belgium
India
South Korea
Taiwan
Germany
US
France
Holland
Portugal
Thailand
Australia
39,515,024
24,890,400
14,566,865
12,019,100
7,317,238
4,525,304
5,794,311
5,119,204
2,718,000
5,270,400
1,555,525
1,495,425
-2.74%
24.68%
-16.84%
-19.13%
-17.26%
-5.64%
53.75%
-51.33%
5.06%
-75.93%
-23.73%
-21.88%
82,060,962
51,057,192
28,786,419
24,464,439
14,870,895
8,063,973
12,360,345
11,025,016
5,031,923
10,725,507
2,836,643
2,916,632
27.10%
61.05%
1.89%
2.31%
8.96%
-1.97%
97.42%
-34.49%
24.70%
-69.07%
-15.15%
-0.66%
Table 7 tells us that gum rosin volume that most countries imported from China in 2013
dropped from a year ago. Portugal and France experienced significant y-o-y reductions of 75.93%
and 51.55% respectively; while the US and Belgium saw large gains of 53.75% and 24.68%
respectively.
Over recent years, demand for Chinese gum rosin from European areas kept shrinking, while
that from nearby countries and areas remained stable. Over half of gum rosin export
destinations locate in East Asia, South Asia and Southeast Asia in 2013, and the volume
exporting to European and American areas fell short of 50% of the total yield.
4.2.1.2 Gum Rosin Export Analysis (by Provinces)
The first five provinces that exported rosin in 2013 were Guangxi, Yunnan, Guangdong, Fujian
and Jiangxi, which are also the major producing areas of gum rosin. Demand from foreign
traders contracted largely this year as domestic gum rosin prices advanced and demand from
other countries remained low.
Table 19 2013 Major Gum Rosin Exporting Provinces
Province
Volume (kg)
Y-o-y change
Sum ($)
Y-o-y change
Guangxi
Yunnan
Guangdong
Fujian
Jiangxi
70,183,605
32,274,000
19,146,581
6,336,282
1,905,475
-21.25%
-18.91%
-26.70%
-26.21%
115.80%
146,997,093
64,491,854
40,609,752
12,176,496
1,452,150
3.58%
-3.86%
-1.99%
15.20%
1.55%
Four provinces experienced reducing export volume of gum rosin except Jiangxi which enjoyed
an increase of 115.8% in export volume. Main reasons for large declines in Guangxi,
Guangdong and Fujian gum rosin export volume were as follows:
19 / 39
First, pine oleoresin production decreased largely in Guangxi and Guangdong, so gum rosin
producers were strongly reluctant to sell on low gum rosin inventories. Second, pine oleoresin
prices went upwards on short production, so manufactures held high expectation for gum rosin
selling price. Third, end demand kept diminishing on global economic slowdown, coupled with
high prices of gum rosin in the domestic market, as major areas of foreign trade, Guangxi and
Guangdong were the first to confront contracting gum rosin exports.
As gum rosin prices stayed firm in Guangxi and Guangdong, many foreign traders turned their
eyes to low-priced goods in Jiangxi, and sales ran with market trend amid relatively mild
sentiment. Thus, gum rosin export volume advanced in Jiangxi.
4.2.2 Turpentine Oil Export Data Analysis
4.2.2.1 Turpentine Oil Export Statistics
Rainy season came in advance in the first half of 2013 in southern areas, and normal
production of turpentine oil was put off by more than one month; tapping workers were also
unwilling to tap pine oleoresin because turpentine oil prices stayed at lows last year; therefore,
turpentine oil output will reduce by at least 40% in 2013. Demand from foreign countries also
decreased largely.
Table 20 2013 China Turpentine Oil Export Data
Month
1
2
3
4
5
6
7
8
9
10
11
12
Total
2013
Volume (kg)
50,000
55,130
124,280
62,965
39,570
32,350
47,250
28,000
120,770
88,935
110,625
50,750
760,625
Sum ($)
125,322
143,513
324,139
175,289
99,677
85,843
129,932
74,750
308,172
240,144
262,269
180,449
1,880,664
Y-o-y change
Volume
Sum
-90.99
-87.5
-82.89
-78.24
-31.71
-14.7
-74.34
-67.09
-61.05
-59.4
-79.68
-91.78
-69.66
-33.05
-85.27
-82.07
-51.56
-37.77
-49.13
-39.97
-65.36
-64.72
-74.19
-61.39
-73.32
-68.29
M-o-m change
Volume
Sum
-74.57
-73.18
10.26
14.52
125.43
125.86
-49.34
-45.92
-37.16
-43.14
-18.25
-67.55
46.06
51.36
-40.74
-42.47
331.32
312.27
-26.36
-22.08
24.39
9.21
-54.12
-31.2
---
China turpentine oil export was hampered seriously by its high prices resulted from rising
commodity price and labor cost, so many foreign traders curtailed purchases from China
considering cost and profits.
20 / 39
4.2.2.2 Turpentine Oil Export Analysis (by Destinations)
Table 21 2012 - 2013 China Turpentine Oil Export Destinations
2012
Country
2013
Y-o-y change
Volume (kg) Sum ($) Volume (kg) Sum ($) Volume (kg)
Japan
365,190
655,309
5,250
21,331
-98.56%
India
364,740
531,872
28,000
14,000
-92.32%
Hong Kong
231,110
523,878
328,190
904,060
42.01%
Germany
101,590
226,083
143,190
353,225
40.95%
Australia
115,340
267,764
73,500
195,016
-36.28%
Thailand
22,750
54,660
36,750
95,143
61.54%
Sweden
20,690
32,679
20,320
46,247
-1.79%
The Philippines
32,900
77,255
27,625
83,410
-16.03%
Bangladesh
14,000
30,744
28,000
75,210
100.00%
Romania
9,100
28,964
34,400
88,752
278.02%
Mexico
1,408,145 3,106,565
0
0
-100.00%
Italy
22,400
51,433
0
0
-100.00%
Egypt
20,000
42,572
0
0
-100.00%
Tunisia
16,100
35,724
0
0
-100.00%
Holland
14,000
50,983
0
0
-100.00%
Norway
14,000
27,237
0
0
-100.00%
Singapore
11,025
38,994
0
0
-100.00%
Angola
10,800
10,503
0
0
-100.00%
Sum ($)
-96.74%
-97.37%
72.57%
56.24%
-27.17%
74.06%
41.52%
7.97%
144.63%
206.42%
-100.00%
-100.00%
-100.00%
-100.00%
-100.00%
-100.00%
-100.00%
-100.00%
The first three importers in 2012, which were Mexico, Japan and India, didn’t import any goods
from China in 2013, giving rise to a lack of strong support to China turpentine oil export. A few
countries slightly increased import volume from China, but export recession was hard to
change.
4.2.2.3 Turpentine Oil Export Analysis (by Provinces)
Table 22 2013 China Turpentine Oil Export Statistics (by Provinces)
Province
Volume (kg)
Y-o-y Change
Sum ($)
Y-o-y Change
Guangdong
Fujian
Guangxi
Jiangxi
267,015
225,635
215,225
13,125
-74.07%
-63.92%
-73.34%
556.25%
739,769
582,357
588,123
54,255
-68.92%
-54.89%
-66.31%
658.81%
Turpentine oil export situation in major producing areas was very severe influenced by
shrinking demand from end consumers. Export volume grew only in Jiangxi, and that in other
provinces lost over 50% compared with 2012. Turpentine oil export volume in Jiangxi from
January to October climbed by 556.25% from a year ago, but only occupied a small proportion
of the total.
21 / 39
4.2.3 Rosin Resin Export Data Analysis
Table 23 2013 Rosin Resin Export Statistics
2013
Month
Volume (kg)
6,058,047
5,412,886
9,440,306
9,096,074
7,070,043
6,630,285
7,933,703
8,627,820
8,960,315
6,616,587
6,258,575
7,115,735
89,220,376
1
2
3
4
5
6
7
8
9
10
11
12
Total
Y-o-y change
Sum ($)
13,922,918
12,036,713
21,240,481
20,025,472
16,001,434
14,707,075
17,388,516
19,409,936
21,912,111
18,555,667
18,521,285
21,635,601
215,357,209
Volume (kg)
-20.29
-26.18
-11.66
21.27
-18.49
-22.34
-11.44
26.23
1.57
0.68
-27.65
-31.28
-11.24
Sum ($)
-19.26
-30.21
-16.1
15.01
-18.37
-23.39
-12.93
28.85
15.95
28.27
-1.54
-5.43
-4.75
Export volume of gum rosin deep-processed products in 2013 reached 89.2kt, down by 11.24%
from a year ago, and that in April, August, September and October climbed year on year.
4.2.3.1 Rosin Resin Export Analysis (by Destinations)
Table 24 2013 China Rosin Resin Export Statistics (by Destinations)
Destination
Volume (kg)
Y-o-y change
Sum ($)
Y-o-y change
South Korea
16,418,193
15.94%
39,202,647
40.28%
Japan
13,147,402
-17.52%
37,012,190
-9.26%
Taiwan
8,975,167
8.09%
20,864,092
14.37%
US
Malaysia
India
Indonesia
Germany
Turkey
Thailand
Vietnam
Holland
Iran
Hong Kong
7,070,169
4,616,584
3,884,140
3,931,465
2,392,394
2,458,517
3,003,336
2,282,605
1,979,600
1,902,620
2,200,840
-42.24%
-9.61%
-10.29%
0.49%
-36.80%
-41.73%
3.41%
8.84%
-8.43%
-30.72%
--
17,182,445
10,666,415
9,557,962
9,522,521
6,039,759
5,363,132
7,120,021
5,038,252
4,419,879
4,211,193
4,545,282
-39.23%
-1.47%
-9.41%
11.48%
-36.03%
-36.52%
18.65%
0.62%
-2.71%
-35.71%
--
22 / 39
Saudi Arabia
UK
Belgium
Australia
Egypt
Italy
1,612,300
1,290,510
1,261,200
1,381,125
941,275
868,485
-27.44%
-35.41%
--24.58%
-50.52%
-24.36%
3,885,827
3,842,808
2,978,297
3,189,560
1,921,445
2,071,056
-25.19%
-10.46%
--22.93%
-52.23%
-20.60%
We know from table 13 that countries imported more rosin resin products than before were
mainly located in East Asia, Southeast Asia and South Asia, such as South Korea, Taiwan,
Indonesia, Vietnam and India; while countries imported less rosin resin than before were
mainly developed countries or areas, such as Japan, the US, UK, Germany and Australia, and
the large decrease was mostly attributed to global economic crisis or debt crisis.
4.2.3.2 Rosin Resin Export Analysis (by Provinces)
Table 25 2013 China Rosin Resin Export Statistics (by Province)
Province
Guangdong
Guangxi
Yunnan
Fujian
Jiangsu
Zhejiang
Jiangxi
Hunan
Shandong
Shanghai
Gansu
Henan
Hubei
Tibet
Anhui
Sichuan
Tianjin
Hebei
Beijing
Volume (kg)
47,335,632
28,110,850
6,355,425
3,276,427
1,867,351
761,959
666,475
469,000
112,323
120,993
51,000
18,000
16,000
16,000
8,000
5,760
2,410
24,310
261
Y-o-y change
2.47%
-15.65%
-44.33%
-36.22%
-5.02%
11.89%
-45.00%
20.62%
314.40%
28.14%
-----61.90%
3191.43%
-59.83%
-44.34%
-95.89%
Sum ($)
111,416,812
71,951,549
12,888,745
8,949,695
4,852,128
1,783,844
1,349,483
1,305,365
274,759
287,218
91,800
35,806
41,623
32,834
19,835
13,549
6,442
45,805
1,781
Y-o-y change
7.84%
-5.53%
-41.96%
-38.56%
4.21%
40.37%
-43.08%
28.95%
249.86%
-5.52%
-----61.83%
624.55%
-57.33%
-39.71%
-86.62%
Export volume lessened in the main producing areas such as Guangxi, Yunnan and Fujian with
the y-o-y reductions of 5.53%, 41.96% and 38.56% respectively. But export volume in
Guangdong gained by 2.47% from last year to 47.3kt by virtue of convenient export
transportation.
Rosin resin export volume in some provinces, such as Zhejiang and Shandong, jumped largely,
23 / 39
but the volume occupied a small proportion of the total, so the effect can be negligible.
Part 5 Gum Rosin Downstream Demand Structure
5.1 2013 Rosin Resin Industry
5.1.1 2013 Rosin Resin Market Review (taking 138# ester gum as an example)
Pinus Elliottii Gum Rosin & 138# Ester Gum Price Contrast in
2013
RMB/mt
20000
Pinus elliottii gum rosin price
138# ester gum price in Jiangxi
18000
16000
14000
12000
10000
8000
Chart 26 2013 Pinus Elliottii Gum Rosin & 138# Ester Gum Price Contrast
RMB/mt
Pinus Massoniana Gum Rosin & 145# Pentaerythritol Ester
Price Contrast in 2013
20000
Pinus massoniana gum rosin
18000
145# pentaerythritol ester
16000
14000
12000
10000
8000
Chart 27 2013 Pinus Massoniana Gum Rosin & 145# Pentaerythritol Ester Price Contrast
Rosin resin market fluctuated following gum rosin market, but the price change was slower
24 / 39
than gum rosin price change. Feedstock gum rosin price remained slightly volatile in the first
half of 2013, causing little effect to production cost of rosin resin products, so most deep
processing enterprises held selling price steady in the first half of 2013.
Rosin resin product prices followed gum rosin price to step up entering mid-July, and were
reduced in November when gum rosin price dipped.
5.1.2 China Rosin Resin Output and Distribution Areas
Guangdong:
According to incomplete statistics, Guangdong has about 45 gum rosin manufacturers, 55 gum
rosin and turpentine oil deep-processing enterprises and more than 70 gum rosin series
products traders in 2012 and is the most active province in China gum rosin market. Most of
gum rosin and deep-processed products are supplied for export with 90% exported through
Huangpu port, Guangdong; in addition, the deep-processing ability of Guangdong comes out
among the top, and thus, Guangdong plays an important role in China gum rosin market.
Guangdong is China’s largest manufacturing base of gum rosin deep-processed products and
most of its products are consumed by local and surrounding deep-processing enterprises, with
partial provided for export. Guangdong has a variety of printing ink, coating, adhesive,
electronic and food manufacturing enterprises and they are in high demand for gum rosin,
turpentine oil and its deep-processed products, which are widely applied across each region in
Pearl River Delta.
The famous gum rosin deep-processing enterprises are as follows: Guangdong Komo Co., Ltd.,
Forestar Chemical Co., Ltd., Deqing Jixin Synthetic Resin Co., Ltd., Deqing Yinlong Industry Co.,
Ltd., Guangdong Hualin Chemical Co., Ltd., Huaiji Dongbang Chemical Co., Ltd., Zhengtong
Forestry Chemical Co., Ltd., Guangdong Gaoyao Hengji Chemical Co., Ltd., Guangdong Printing
Ink Factory Co., Ltd., Yunfu West Tech Chemical Co., Ltd., Arez (GaoYao) Chemical Co., Ltd.,
Lawter Fengkai Chemicals Co., Ltd., etc.
The famous foreign trade enterprises are as follows: Guangdong Forest Products Industrial
Corporation, Guangdong Agribusiness Group Import & Export Co., Ltd., Guangdong Native
Produce Import & Export Corporation (Group), Forestar Chemical Lo., Ltd., Dashan Chemicals
(Guangzhou) Import & Export Ltd., Foshan Baolin Chemical Industry Co., Ltd., Sinochem
Guangdong Co., Ltd., etc.
Guangxi:
Guangxi is the largest gum rosin production province in China and has always been the most
important manufacturing and deep-processing base of forestry products.
Gum rosin deep-processed products developed rapidly in Guangxi in recent years and have
formed more than 30 kinds of products absorbed in 7 series, such as disproportionated rosin,
polymerized rosin, hydrogenated rosin, papermaking sizing agent, rosin resin, pale rosin and
25 / 39
rosin amine, with an annual output of nearly 100kt. Especially some foreign traders are
optimistic about gum rosin investment environment in Guangxi and pour into the market to
invest and construct gum rosin deep-processing enterprises. Now deep-processed products
produced from foreign-invest enterprises have occupied more than 60% of the total in Guangxi.
According to incomplete statistics, Guangxi has 110 or so gum rosin manufacturers, nearly 30
gum rosin and turpentine oil deep-processing enterprises and about 40 gum rosin series
products traders in 2012. The deep-processing enterprises mainly concentrate in Wuzhou,
Nanning, etc., and a few are located in Guilin, Liuzhou, Yulin, etc.
The famous gum rosin deep-processing enterprises are as follows: Wuzhou Pine Chemicals Ltd.,
Wuzhou Sun Shine Forestry & Chemicals Co. Ltd., Guangxi Wuzhou Arakawa Chemical
Industries, Ltd., Nanning Litong Resin Co., Ltd., Senlong Chemical Co., Ltd., Guangxi Sino
Consumer Products Co., Ltd., Guangxi Yulin Wanfang Resin Co., Ltd., Guangxi Beiliu Hongfeng
Turpentine Co., Ltd., Harima Chemical Group, etc.
Yunnan:
Yunnan is a big province of pine oleoresin resources in China and the major tree species are
Pinus yunnanensis and Pinus kesiya, with pinewood areas and reserves ranking the first in
China. After several years’ fast development, Yunnan gum rosin and deep-processing industries
have gotten rapid promotion.
According to incomplete statistics, there are 55 gum rosin manufacturers in Yunnan, of which
13 manufacturers own capacity of above 10kt/a, and nearly 10 gum rosin and turpentine oil
deep-processing enterprises, covering products like rosin resin, disproportionated rosin,
hydrogenated rosin, pinene, borneol, etc.
Gum rosin and turpentine oil deep-processing development relatively lags behind in Yunnan,
but deep-processing enterprises enter a fast development stage in recent years with the wide
application of Yunnan gum rosin in each field. Current deep-processed products capacities are
as follows: rosin resin is about 70kt/a, disproportionated rosin around 50kt/a, hydrogenated
rosin 4kt/a, pinene 20kt/a, while borneol is 1kt/a.
Jiangxi:
Jiangxi is one of the biggest provinces of gum rosin production in Middle China and the major
tree species is Pinus elliottii, with some Pinus massoniana resources appearing in southern
Jiangxi. Pine oleoresin mainly centers in Ji’an and Ganzhou. Above 80% of gum rosin in Jiangxi
is sold in domestic market due to superior geographical position and convenient transportation,
mainly moving into Shanghai, Jiangsu, Zhejiang, Shandong, etc. Local gum rosin and turpentine
oil deep-processing enterprises are prefect and it is also a major province of gum rosin and
turpentine oil deep-processed products.
According to incomplete statistics, there are totally 55 or so gum rosin manufacturers in Jiangxi
and Jiangxi Feishang Forestry Co., Ltd. has the largest scale among them.
26 / 39
There are about 20 gum rosin deep-processing enterprises in Jiangxi and the large-scaled ones
are as follows: Jiangxi Feishang Forestry Co., Ltd., Ji’an Komo Resin Co., Ltd., Dingnan Songyuan
Chemical Co., Ltd., Shanghai Songtai Forest Chemical Investment Co., Ltd., Jiangxi Fuda Spice
Chemical Co., Ltd., Fuyuan Chemical Co., Ltd., Ningdu Fuming Forestry Technology Co., Ltd., etc.
Guangdong Komo Co., Ltd. enters the market and this largely improves the quality and quantity
of rosin resin in Jiangxi, but at the same time, it also intensifies local competition on gum rosin
resources.
There are about 20 turpentine oil deep-processing enterprises in Jiangxi, including Ganzhou
Taipu Chemical Co., Ltd., Suichuan Xinhai Chemical Co., Ltd., Shaxian Songchuan Chemical Co.,
Ltd., Wuyuan Fangzheng Chemical Co., Ltd., Jiangxi Jishui Hongda Natural Spice Corporation
Ltd., Jiangxi Spice Chemical Industrial Co., Ltd., Jiangxi Mashan Chemical Co., Ltd., Jiangxi Huayu
Aromatic Technology Inc., Jiangxi Huali Chemical Co., Ltd., etc., which mainly produce
turpentine oil derivatives like terpineol, pinene, terpene resin, etc. The above manufacturers
mainly center in Jishui and Ganzhou, and Ganzhou Taipu Chemical Co., Ltd. is the largest
terpene resin producer in China.
Fujian:
Fujian is also the major gum rosin production area in China and is rich in Pinus massoniana
resources. It has a long history of gum rosin production and the main product is Pinus
massoniana gum rosin (steam method). Local pinewood resources mainly concentrate in
Sanming, Longyan and Nanping.
According to incomplete statistics, Fujian has nearly 40 gum rosin manufacturers and more
than 20 gum rosin and turpentine oil deep-processing enterprises. The gum rosin and
turpentine oil deep-processing industry is rather developed with perfect industrial chain, as it
closes to the chemical industry roost in East and South China, thus, it is also an important
province of gum rosin deep-processing industry in China.
Major gum rosin deep-processing enterprises are as follows: Rosin Chemical (Wuping) Co., Ltd.,
Xiamen Arakawa Chemical Industries, Ltd., Fujian Ninghua Lifeng Chemical Co., Ltd., Nanping
Hansen Chemical Co., Ltd., Fujian Dehua Weilong Chemical Co., Ltd., Shaowu Changxin Tackifier
Factory, Shaowu Xingguang Chemical Co., Ltd., etc., which cover a series of gum rosin
deep-processed products like polymerized rosin, ink resin, food-grade resin, tackifying rosin
resin, coating resin, etc.
Turpentine oil deep-processing enterprises are as follows: Xiamen Doingcom Chemical Co., Ltd.,
Fujian Shaxian Qingzhou Daily Use Chemicals Co., Ltd., Fujian Qingliu Minshan Chemical
Co.,Ltd., Jinmin Forest Chemical Product Co., Ltd., Fujian Green Pine Co., Ltd., Fujian Shaxian
Wanli Chemical Co., Ltd., etc., and major products are pinene, pine oil, terpene resin, terpineol,
dihydromyrcene, synthetic camphor, borneol, etc.
There are more than 30 export enterprises on gum rosin and deep-processed products, of
which the large-scaled ones are Rosinsource International Limited, Haixier (Xiamen) Chemical
Industry Co., Ltd., Fujian Huachuang Import & Export Co., Ltd., Xiamen Pineta Industrial Co.,
27 / 39
Ltd., Foreverest Resources Ltd., etc.
5.1.3 China Rosin Resin Downstream Demand Structure
Looking at China rosin resin downstream demand structure, major application fields of rosin
resin are coating, adhesive, printing ink, etc. Adhesive and coating resin industry is the most
active field in gum rosin deep-processing industry and also uses the most of rosin resin. China
produced 274kt adhesive and coating resin totally in 2012 and the overall capacity was 680kt/a,
with gum rosin demand of 274kt or so. Entering H2 2013, gum rosin prices increased rapidly so
resin products demand plunged. It is estimated that China adhesive and coating resin output
reduced above 10% by the end of 2013.
Printing industry is the main application field of rosin resin and China printing ink resin capacity
reached more than 200kt in 2012, with gum rosin demand of around 88kt. Printing ink demand
from gift packaging industry reduced noticeably in 2013 due to the policy influence at home
and abroad, and some small printing enterprises were even closed. It is estimated that gum
rosin demand from printing industry reduced by 10% or so in 2013.
With the rapid development of production capacity, petroleum resin becomes the largest
threat to rosin resin on their similar viscous property. But oil is non-renewable resources, after
all, and world crude oil price is on the rise, so petroleum resin price is difficult to lower, while
pine oleoresin is a kind of renewable resources and rosin resin enjoys sustainable development,
so it can be widely used in the future on its environmental character.
5.1.4 2011-2013 Rosin Resin Demand Contrast for Gum Rosin
Table 28 2011 - 2013 Rosin Resin Demand for Gum Rosin
Unit: kt
Gum rosin output
Demand from rosin resin
Gum rosin exports
2011
731
249.9
231.1
2012
699.7
280
167.7
2013
430
196
133.1
It can be seen from the above table that, China gum rosin exports will present a downward
trend in 2013, with the numbers expected to fall 20.62% or so from last year. This is because
that China domestic gum rosin prices keep increasing this year while foreign goods prices are
much lower, so foreign traders turn to purchase gum rosin from other countries instead of
China.
Regarding rosin resin, domestic demand in 2013 is predicted to reduce 30% or so from that in
2012. Gum rosin prices experienced a short-time hike, and domestic deep-processing
enterprises and end users felt difficult to accept it, especially when gum rosin prices surged to
28 / 39
RMB 15,000-16,000/mt, only several large deep-processing enterprises had certain purchases,
while others ceased production.
Meanwhile, substitutive products, especially petroleum resin, have noticeable price
advantages, so some end users begin to use lower-priced petroleum resin instead of rosin resin,
which eventually results in reducing gum rosin demand.
5.2 Gum Rosin Demand from Other Downstream Industries
5.2.1 Adhesive Industry Production & Demand for Gum Rosin
Table 29 Adhesive Output and Demand for Gum Rosin
Unit: kt
Adhesive output
Demand for gum rosin
2012
5,684
109.5
2011
5,165
71
2010
4,628
85.8
2009
4,050
95
China adhesive market has always kept a rapid development in recent years. Adhesive output
in 2012 reached 4,628kt and sales increased to RMB 59billion; it is preliminarily estimated that
the output in 2013 might be around 5,000kt. The average growth rate on adhesive output and
sales will keep 10% and 12% or so in the next two years.
From 2013 adhesive industry situation, it can be seen that overall industry concentration is low
and the number of small and medium-sized enterprises are high with wide distribution; these
enterprises mainly produce common adhesive products and industry profit rate is relatively low,
while in the field of structural adhesive, the industry concentration is high with larger profits
and some large joint ventures enjoy noticeable advantages in market shares, as well as
technology research and development.
With domestic economy developing rapidly and people’s life quality improving, market demand
for adhesive will increase gradually and high-end environmental resin will win more favor of
people.
The application of gum rosin in adhesive industry is mainly concentrated in hot-melt adhesive
and pressure-sensitive adhesive. The cost performance ratio of petroleum resin is reducing in
recent years, so gum rosin usage in adhesive industry is increasing, coupled with environmental
requirement.
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5.2.2 Coating Industry Production & Demand for Gum Rosin
Coating Output and Growth Rate in Recent Years
kt
Coating output
Growth rate
16000
40.00%
14000
35.00%
12000
30.00%
10000
25.00%
8000
20.00%
6000
15.00%
4000
10.00%
2000
5.00%
0
0.00%
Chart 30 Coating Output and Growth Rate in Recent Years
Table 31 Painting Output and Demand for Gum Rosin
Unit: kt
Painting output
Demand for gum rosin
2012
12,718.8
164.5
2011
10,795
109
2010
9,666
134.2
2009
7,554.4
155
Global coating output reached 40,000kt in 2012. The Asia-pacific region was still the largest
consumption market and its coating output ranked the first occupying 42% of total yields.
China accounted for more than 50% of coating consumptions in Asia, with the yields of
12,718.75kt in 2012, up by 11.79% from the previous year. China coating production hit record
highs and ranked world first consecutively, so China has undoubtedly become a coating power.
China coating output growth slowed down on real estate regulation policies, but the yields
were still on the rise in recent years. SCI predicts China coating output to reach 14,000kt in
2013. It can be seen that coating demand is still huge in China, resulting in large demand for
feedstock gum rosin products.
According to the data released by ASKCI Consulting, China produced 8,148.473kt coating in the
first eight months of 2013, up by 3.96% from the same period in 2012. Gum rosin usage in
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China coating industry maintains around 30kt. However, impacted by rising petroleum resin
prices, the applications of hydrogenated rosin, polymerized rosin and low viscosity hot-melt
rosin in modified traffic paint have increased noticeably in recent years.
5.2.3 Printing Ink Industry Production & Demand for Gum Rosin
Rosin resin used in printing ink is mainly divided into two categories: one is rosin modified
phenolic resin, mainly used in offset printing ink, newspaper, etc., and its supplies are huge; the
other is rosin modified maleic resin, mainly used for solvent-based ink, water-based ink and so
on, but market supplies are few. Printing ink yields were 610kt totally in 2012 and will maintain
a steady growth.
The application of gum rosin products in printing ink industry is mainly concentrated in ink
resin. In 2012, China ink resin capacity reached more than 200kt and the actual production was
around 105kt, with a demand of 88kt for gum rosin.
5.2.4 Dyeing Industry Production & Demand for Gum Rosin
After experienced sluggish economy at home and abroad in 2012, China dyeing cloth output
sustained negative growth in H1 2013, but the economic benefit improved noticeably and
major economic indicators, such as profit, investment and export, increased largely from 2012.
In the first six months of 2013, dyeing cloth output of large-scaled enterprises were
27.582billion meters, down by 5.4% from the same period last year; the growth rate dropped
by 10.06% from the same period in 2012 and 3.34% from the whole 2012. During the same
period, dyeing cloth yields in Zhejiang, Fujian, Jiangsu, Guangdong and Shandong totaled
2.5885million meters, occupying 93.85% of domestic total output.
The main business income of 1,903 large-scaled dyeing enterprises were RMB 140.492billion in
the first five months of 2013, up by 6.2% from the same period last year; total realized profits
were RMB 5.615billion, up by 24.72% from the first five months of 2012, with the growth rising
by 11.72% from the same period last year; export delivery value reached RMB 23.595billion, up
by 3.39% compared with the same period in 2012, with the growth improving by 8.48% from
January - May of 2012.
The number of large-scaled enterprises was 1,903 during January-May of 2013, reduced by 11
from the same period of 2012; the number of enterprises running at a loss was 383, lowered
by 55 from the same period last year; total losses were RMB 572million, down by 30.7% from
the same period of 2012.
In H1 2013, the scale of losses of large-scaled dyeing enterprises was lower than that in H1
2013 and presented a narrowing tendency.
Gum rosin demand from dyeing industry took up 3.5% of total gum rosin demand in the past
years and the number was 25kt in 2012. Gum rosin application in dyeing industry kept
relatively unchanged in 2013, with the numbers of 25-30kt.
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5.2.5 Synthetic Rubber Industry Production & Demand for Gum Rosin
The figures released by SCI showed that gum rosin demand in China synthetic rubber industry
was 72kt in 2012 and is expected to reach 82.4kt in 2013.
Looking at current demand structure, synthetic rubber supply and demand still present a
growth stance and the increase in supply will significantly exceed that in demand. The start-up
in synthetic rubber plants will be few for a long term, so supply growth will slow down while
demand will still sustain a rising momentum.
5.3 Substitutes’ Influence on China Gum Rosin Market
5.3.1 Increased Petroleum Resin Demand
Petroleum resin can completely replace rosin resin in painting, coating, adhesive and other
industries, but whether the replacement could happen relies on rosin resin prices. As a kind of
natural chemical feedstock, rosin resin has some irreplaceable advantages, such as good
compatibility and light color. But petroleum resin production cost is fixed, unlike rosin resin
cost, which changes largely and frequently. Therefore, some users are forced to substitute rosin
resin with petroleum resin given that rosin resin price rises sharply and is far higher than
petroleum resin.
2013 Petroleum Resin and Rosin Resin Price Contrast
Petroleum resin price of some manufacturer
RMB/mt
20000
138# ester gum price in Jiangxi
18000
16000
14000
12000
10000
8000
Chart 32 2013 Petroleum Resin and Rosin Resin Price Contrast
There were no apparent price differences between rosin resin and petroleum resin in H1 2013
and rosin resin even had more price advantages. With the constant increases in feedstock gum
rosin prices, rosin resin prices followed to increase and formed a large price gap with
petroleum resin, although rosin resin prices corrected lower later.
32 / 39
Most rosin resin manufacturers kept normal production in recent years on existed rigid
demand, although gum rosin demand from end markets showed a weakening situation.
According to SCI, most rosin resin manufacturers basically maintained normal sales in H1 2013
with few end buyers choosing petroleum resin, but after rosin resin prices increased, more and
more rosin resin manufacturers took hiccup production or even suspended production in H2
2013 due to lack of orders, as end buyers turned to petroleum resin for substitution.
Part 6 2014 Gum Rosin Market Trend Forecast
6.1 2014 Gum Rosin Market Supply Structure Forecast
6.1.1 China Gum Rosin Output Forecast
1) Low operating rates before pine oleoresin production season
Regarding pine oleoresin supply in Guangdong and Guangxi, market supplies were low but
prices stayed at highs in 2013, much higher than the same period in the past years despite of
some decreases late in the year. Both contractors and suppliers were satisfied with pine
oleoresin prices this year, coupled with low output, so few industry players built up stocks for
further price gains. In addition, gum rosin manufacturers successively cut pine oleoresin
purchasing prices approaching the end of production season, and some suppliers who had built
up some pine oleoresin stocks earlier chose to sell goods to avoid the unnecessary cost risk. It
is therefore expected that, before pine oleoresin production season starts in 2014, few gum
rosin manufacturers will start operating due to lack of feedstock and overall production rates
will be low.
2) New added output
Regarding pine oleoresin supply in Yunnan, the output in 2014 will be similar to that in 2013.
For one thing, the available pine oleoresin resources are reducing due to serious damages of
pine tree in previous years; for another, the government strengthens the protection measures
of closing hillsides to facilitate afforestation, affecting pine oleoresin output accordingly; finally,
a reduction in the workforce directly affects pine oleoresin output.
Pine oleoresin prices sustained at low levels in recent years despite of rising commodity prices
and labor costs; in addition, more and more tapping workers and farmers began to seek for
jobs in cities or plant high-yielding crops, as pine oleoresin tapping work is hard and danger. It
is predicted that Yunnan will witness basically unchanged pine oleoresin output in 2014
compared with that in 2012, so gum rosin yields will be difficult to have an obvious growth.
Contractors in other producing areas generally begin to organize tapping workers to go uphill in
February and March of the lunar year and pine oleoresin moves downhill successively around
Dragon Boat Festival. Considering various kinds of negative factors, such as labor shortage and
bad weather, 2014 will see a large number of pine oleoresin go downhill around June of the
lunar year, so new gum rosin will successively appear in the market during July-August of 2014.
Through communications, both contractors and gum rosin manufactures generally believe that
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they will face the following problems in 2014: 1) labor shortage and high costs; 2) few
contractors; 3) tight pine oleoresin supplies. Therefore, new gum rosin output will still be low in
2014 but will increase slightly from 2013; pine oleoresin purchasing prices will hover around
RMB 10-14/kg.
6.1.2 Gum Rosin Import Volume Forecast
Table 33 2008 - 2013 China Gum Rosin Import Volume Change
Unit: kt
Gum rosin imports
2008
2009
2010
2011
2012
2013
1.1
2.9
3.6
2.7
9.9
30.4
China gum rosin imports maintained around 3kt before 2012 but increased largely from then
on. The imports in 2012 reached 9.9kt and surged to 30.4kt in 2013.
According to the incomplete statistics, nearly half of deep-processing enterprises showed little
buying interest in August of 2013 when gum rosin prices hiked to RMB 14,000/mt, and some
even closed production or took hiccup production. Some of them had to seek for substitutive
products to cut costs and enlarge profits, and imported gum rosin was a good choice. Moreover,
SCI thinks increased foreign gum rosin output in recent years is also one of the reasons for
increased gum rosin imports in China.
China gum rosin lacks price advantage in international trades, couple with subdued global
economy and sluggish market demand, so domestic deep-processing enterprises still purchase
lower-priced gum rosin from abroad to gain larger profits. Therefore, China gum rosin imports
will continue increasing in 2014, but import growth will slow down as foreign gum rosin prices
are closing to China market prices.
6.2 2014 Gum Rosin Market Demand Pattern Forecast
6.2.1 Gum Rosin and Related Products Export Volume Forecast
China is a big country in gum rosin production with the output and exports of gum rosin and its
related products ranking world first for many years. But China gum rosin products are mostly
used for preliminary working with low added value and high export dependence. Therefore,
with worse global macroeconomic environment, China gum rosin exports have been
decreasing since 2008; besides, export product structure is given priority to simple processing
and deep-processing product quality is not high.
In 2013, market economy lost recovering momentum in Europe and the economy performance
in the euro zone still looked cloudy; the US government faced intensified debt crisis and market
economic recovery slowed down, and Sino-Japanese political tensions will inevitably affect the
economy and trade between the two countries. With conservative trade of each country,
34 / 39
increasing trade barriers and unclear world market trend, China gum rosin industry will face
more complicated international economic environment. Although government of each country
constantly takes measures to transfer the economic decadent state, it could not change
overnight. Therefore, overall market economic situation will sustain depressed in 2014 and
foreign end demand for gum rosin will keep at a low level.
Besides product quality, end buyers also take price as a consideration in choosing gum rosin
products. Compared with other countries and regions, China gum rosin prices are at a
disadvantage and therefore will lose in the price war.
China gum rosin export market is expected to remain sluggish in 2014, but some rigid demand
still exists as China gum rosin products quality is high. Total exports in 2014 are predicted to be
around 130-150kt.
6.2.2 China Gum Rosin Downstream Demand Forecast
China structural adhesive output is estimated to reach 730kt till 2015, with an annual growth
of 17.23% from 2010. The average growth of output and sales on adhesive and sealant will be
around 10% and 12% respectively during 2011-2015, and the output will reach 7,170kt and
sales will get to RMB 103.8billion in 2015.
Synthetic rubber was a lucrative product four years ago and many private enterprises rushed to
invest on it. After that, natural rubber prices plunged from RMB 40,000/mt, driving lower
domestic synthetic rubber prices accordingly; meanwhile, newly-built capacity was released
constantly and synthetic rubber became a low-profit product. Qi Runtong, vice-chairman of
China Synthetic Rubber Industry Association, predicted that China synthetic rubber production
rates will reduce further to 61% this year while the loads of butadiene rubber and
isobutylene-isoprene rubber might drop to 50%. Wan Tao, president of China Synthetic Rubber
Industry Association, pointed out that China synthetic rubber market will remain oversupplied
in the near term and industry players should jointly hold together in the face of market
challenges.
According to Industrial Structure Adjustment Guidance Catalogue (2011 edition) issued by the
National Development and Reform Commission, printing ink plants with capacity below
300mt/a (except those with high-tech and non-pollution) and benzene solvent ink projects are
eliminated. Green environmental protection concept has become the consensus in printing ink
industry, which will develop in the direction of non-toxic and pollution-free. Water-based ink
and environmental offset printing ink markets will have a bright prospect.
The above only intercepts market changes of several downstream products in recent years and
the conclusion is mixed. China currently enters into economic transformation and upgrading
stage and is eliminating backward production capacity; moreover, the government speeds the
implementation of closing down backward production capacity in order to control
environmental pollution, with the involved downstream enterprises covering printing ink,
dyeing and papermaking.
35 / 39
What’s more, downstream markets are also oversupplied and it is the fundamental for
downstream enterprises to survive through changing production and operation mode,
lowering production cost and improving product quality, rather than expanding production.
Besides the above factors, gum rosin prices also play an important role in affecting
downstream market demand for gum rosin. Gum rosin prices changed frequently and violently
in recent years, largely weighing on downstream demand. As a result, downstream enterprises
began to seek for substitutive products so gum rosin consumptions reduced constantly.
According to incomplete statistics, nearly half of deep-processing enterprises showed little
buying interest in August of 2013 when gum rosin prices hiked to RMB 14,000/mt, and some
even closed production or took hiccup production. Some of them had to seek for substitutive
products to cut costs and enlarge profits, and imported gum rosin was a good choice.
Additionally, petroleum resin is also a big threat to gum rosin. Petroleum resin can completely
replace rosin resin in painting, coating, adhesive and other industries, but whether the
replacement could happen relies on prices. As a kind of natural chemical feedstock, gum rosin
has some irreplaceable advantages, such as good compatibility and light color. But petroleum
resin production cost is fixed, unlike gum rosin cost, which changes largely and frequently.
Therefore, some users are forced to substitute gum rosin with petroleum resin given that gum
rosin price rise sharply and is far higher than petroleum resin.
With reducing market demand and lower-priced substitutive products, gum rosin demand from
downstream markets will largely rely on its price trend in 2014, but the rigid demand of
30-40kt per month should be able to guarantee.
6.3 2014 Industrial Policies’ Influences on Gum Rosin Market
In 2013, each producing area makes great effort in standardizing guidance, introducing policies,
making planning, strengthening training, technological innovation, industry cooperation,
planting forest and enriching the people, improving pine tree resources comprehensive
utilization, etc. For example, the government strengthens the protection measures of closing
hillsides to facilitate afforestation, organizes training and study for tapping workers and cracks
down on illegal pine oleoresin acquisition and stealing behaviors; meanwhile, it introduces
relevant supporting policies, such as giving leading gum rosin enterprises policy support and
rewards, helping competent enterprises listing and financing, introducing online trade platform,
etc.
The execution of the above policies guides and standardizes the development of perfecting
gum rosin industry. It not only ensures the reasonable development and utilization of pine tree
resources, but also alleviates the difficulties resulted from inventory backlog and excess
capacity.
6.4 2014 Gum Rosin Price Trend Forecast
China gum rosin output is expected to be around 430kt in 2013 and market stocks should be
36 / 39
180kt or so by the end of this year. From this we can see that the average rigid demand is
around 40kt per month. Therefore, overall market stocks appeared tight before June of 2014,
excluding gum rosin output of H1 2014 in Yunnan Province, and this is a positive support for
gum rosin manufacturers.
Moreover, the economic environment at home and abroad in 2014 might be more beneficial to
the development of gum rosin industry compared with 2013, therefore, further upside to gum
rosin prices will be possible.
SCI expects that gum rosin market prices in early 2014 might maintain weak corrections at low
levels seen in end-2013. The market will stabilize or might show signs of increasing on tight
stocks during March-June; prices will be on the rise from July to October, similar to those in the
same period of 2013, and might reach above RMB 15,000/mt; November-December will
witness the production season come to an end across most producing areas and manufacturers
will face increasing financial strain, so gum rosin prices will correct lower.
2014 Gum Rosin Price Trend Forecast
RMB/mt
2013
2014
18000
17000
16000
15000
14000
13000
12000
11000
10000
9000
8000
Chart 34 2014 Gum Rosin Price Trend Forecast
The above market speculation is based on the condition that gum rosin output in 2014 will gain
slightly from 2013, market demand will improve somewhat and stocks will sustain at low levels.
However, if gum rosin output increase largely in 2014 and imports also hike constantly while
market demand shows no improvement, it will be at risk to keep high market stocks.
Conclusion
The reserves of oil, gas and other resources, that could not be renewable, are limited on the
earth while pine oleoresin is a kind of biological and renewable resources and can achieve
sustainable utilization. Currently, energy and chemical enterprises based on oil resources
encourage the development of biological resources rather than petrochemical resources in
respond to the worldwide resources crisis resulted from increasingly shortage of oil resources.
37 / 39
Moreover, with the development of social economy and continuous improvement of people’s
living standard, the government of each country is paying increasing attention to people’s living
quality and environment management, therefore, gum rosin, as a kind of pure natural chemical
feedstock, will get more and more favor of people, with bright development future.
Appendix: Chart & Table
Chart 1 2013 Huangpu Gum Rosin Price Trend
Chart 2 Gum Rosin Cost Proportions
Chart 3 2013 Gum Rosin Profit Analysis
Chart 4 2011 - 2013 Huangpu Gum Rosin Price Contrast
Chart 5 Global Rosin Capacity Distribution Pattern
Chart 6 2010 - 2013 China Gum Rosin Output Statistics
Chart 7 2010 - 2013 Gum Rosin Output Statistics in Main Producing Areas
Chart 8 2013 Gum Rosin Import Analysis (by Customs)
Chart 9 2013 Gum Rosin Import Analysis (by Provinces)
Chart 10 2013 Pine Oleoresin Price Trend
Chart 11 2013 China Gum Rosin Export Destinations
Chart 12 2013 Pinus Elliottii Gum Rosin & 138# Ester Gum Price Contrast
Chart 13 2013 Pinus Massoniana Gum Rosin & 145# Pentaerythritol Ester Price Contrast
Chart 14 Coating Output and Growth Rate in Recent Years
Chart 15 2013 Petroleum Resin and Rosin Resin Price Contrast
Chart 16 2014 Gum Rosin Price Trend Forecast
Table 1 2012 - 2013 Gum Rosin Import Analysis (by Countries)
Table 2 2011 - 2013 Pine Oleoresin Output Contrast
Table 3 2013 Pine Oleoresin Output in Producing Areas
Table 4 2011 - 2013 China Gum Rosin Demand Change
Table 5 2013 Gum Rosin Export Statistics
Table 6 2012 - 2013 China Gum Rosin Export Destination Ranking
Table 7 2013 China Gum Rosin Export Data
Table 8 2013 Major Gum Rosin Exporting Provinces
Table 9 2013 China Turpentine Oil Export Data
Table 10 2012 - 2013 China Turpentine Oil Export Destinations
Table 11 2013 China Turpentine Oil Export Statistics (by Provinces)
Table 12 2013 Rosin Resin Export Statistics
Table 13 2013 China Rosin Resin Export Statistics (by Destinations)
Table 14 2013 China Rosin Resin Export Statistics (by Province)
Table 15 2011 - 2013 Rosin Resin Demand for Gum Rosin
Table 16 Adhesive Output and Demand for Gum Rosin
Table 17 Painting Output and Demand for Gum Rosin
Table 18 2008 - 2013 China Gum Rosin Import Volume Change
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gum rosin market

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