China Turpentine market Weekly Review (Nov.24-28,2008)

China Turpentine market Weekly Review (Nov.24-28,2008)

Copyright of rosinworld@hotmail.com

This week China Turpentine market gets some change as the government published notice for part of the deep-processing products of Turpentine are to be increased at export tax rebate rate from Dec.1, 2008. The market demand has increased a little, but the price has not presented too much change. As part of the less important producing areas such as Hubei, Hunan, Henan and Anhui provinces had just finished the rosin producing season, some turpentine poured into the market at low prices, the market appears to offer a state of confusion, mixed high and low prices. At present, in the main producing areas Guangxi Province, Pinus massoniana Gum turpentine oil (super grade) remained at about 13000 yuan / ton, and Pinus elliottii turpentine at 14,000 yuan / ton, the purchase and sale situation is normal. Kunming, Yunnan pine turpentine in the delivery price of 12800-13000 yuan / ton, sales are still good.

As reported by the customs, in the past 10 months, turpentine and related processing products export data shows: turpentine exports totaled 3113 tons, a decrease of 74% than last year's 11,982 tons. Pine oil exports 4999 tons over the same period, while last year data was 6625, it means a 25% reduction in quantity. terpineol exports 5328 tons, 19% less than the same period last year, 6562 tons. Camphor exports 7019 tons, 24% less than the same period last year, 9188 tons. The Export reduces in Processing-related products shows that, on one hand, domestic production reducing rate of turpentine is obvious, but on the other hand, foreign demand is declining and turpentine processing decrease was primarily due to exports.

On the market trend of Turpentine, people in this industry still have different views, a view says that the current main producing areas are in the end of rosin production, and there will be little quantity turpentine to come,. In general, in the market, turpentine is still in the state of “demand more than supply”, it is unlikely to see that the price will surfer a great falling down, the turpentine prices are possible be rebound. Another points of view thinks that the current prices are still high when regarding of this time of the financial crisis, turpentine downstream processing products may begin to fall in the near future, the latter part of a new set of orders at high prices is unlikely, so in the future turpentine may go down and the overall price trend is difficult to change.

However according to the current understanding of the situation, domestic market demand for turpentine is still relatively strong, in particular, to raise the export tax rebate will also benefit the deep-processed products exports. In the short term turpentine market prices will remain relatively stable.