Brazilian Pinus elliottii gum turpentine prices have increased by 41pc compared with a year earlier, with availability tightening as a result of firm demand at key end markets.
Argus assessed Brazil gum turpentine prices at $2,400-$2,600/t fob on 17 February, Brazil port, up from $1,700-$1,800/t fob a year earlier.
Gum turpentine supply is thin because of lower gum rosin processing rates caused by softer downstream markets. Gum turpentine and gum rosin are coproducts of pine oleoresin feedstock distillation, with gum turpentine representing a smaller fraction of the finished product.
Several factories in Brazil reported being sold out for the elliottii gum turpentine product until February and March. Some buyers prices will likely continue to rise throughout the second quarter of this year.
With a bearish demand outlook for rosin, processing rates will likely remain low, further limiting gum turpentine production amid firmer demand in key markets like aroma chemicals and house cleaning products.
