In the first half of March, Asia Gum Rosin prices experienced a slight incline due to the rising demand from the downstream industries.

Chinese market showcased an incline due to the rise in demand from the downstream industries including the automotive and construction sector. Gum Rosin is also used in the Rubber and Paper Industries, market activities show significant growth in these sectors as well. The downstream industries showed high fluctuations in the following days, aligning with the seasonal trend in the respective sectors.

This inclined trends of Gum Rosin are also observed in the Japanese and Indonesian markets as well whereas the growth patterns of the downstream industries in Japan and Indonesia are a bit different. As per the data, Japanese vehicle sales increased by 18.7% in February whereas in Indonesia only a 2.2%  increase was observed. Demand from the automotive paints and coating rises, which increases the consumption of gum rosin which acts as a binder, holding the paint components together and providing adhesion to the vehicle’s surface.

In the meantime, South Korea also experienced an upward trend. The automotive and construction sectors show decent growth in the Korean market. As per the previous reports, the Korean paint and adhesive industry is also experiencing growth and transformation, driven by technological advancements and sustainability.

Another key Asian economy, Vietnam, did not show such a change of a large extent in price trend. However, the sales of automobiles rose 14.4% in February from January.

A market study reveals a concurrent rise in gum rosin pricing across both Asian and South American Regions. As per the report, Brazil’s automotive production increased 8% in February from January to 184,960 units, as an outcome, Gum Rosin consumption surged marginally. The supply remains steady, as no reports of any supply chain issue related to Gum Rosin have been found. However, the rising demand in the industry may pressure traders for timely supply. Weather patterns also influence the Gum Rosin production, as pine resin extraction is sensitive to climatic conditions and the upcoming months are quite dryer which influences the production rates.

Looking ahead, ChemAnalyst expects Gum Rosin prices to maintain an upward trend in the Asian and South American markets, driven by anticipated growth in demand from downstream industries. Based on seasonal trends observed from the historical and current year's data, the automotive sector likely to show an upward trajectory, suggesting a sustained increase in demand.