Production and Market of Gum Rosin in China-2014 edition Edition (7)

Published: September 2014
No. of Pages: 96
    ReportsandReports

Gum rosin hot topics in 2014

Electronic plate

In order to promote the steady development of gum rosin industry, gum rosin indexation listed in the Bohai Commodity Exchange (BOCE) on February 23, 2012. It was called electronic plate which brought great change to gum rosin trading mode.

Electronic plate owns an advantage of hedging. That means that consumption enterprises can lock the future production costs nowadays by hedging. Besides, it helps them to ensure their profits while the gum rosin's price becomes more expensive. Relatively speaking, for the production enterprises, they also can sell their goods in the locked price by this platform.

Electronic plate will affect different aspects of process of production around gum rosin like factories, the deep processing, international trading, dealers and downstream enterprises. The detail of these former three parts is as follows.

Factories: Concerning the electronic plate in high attention, Perhaps the spot price is following the electronic plate to rise up, the factories prefer to hold their goods and they have strong willing to push up the price. Except part of factories sell their gum rosin in high price, others keep their gum rosin for expected price in higher level in the future.

The deep processing: The deep processing enterprises hope to avoid the price risk, but it's not really reached their outlook. The deep processing enterprises are not going to stock gum rosin, they may stock it when the price is stably low.

International trading: International trading companies are not interesting in electronic market, because international trading is affected badly by price fluctuations.

CCM draw that electronic plate price affects factories' attitude deeply, owners of factories will unite to push up the price in the way of electronic market. However, the real demand of gum rosin of downstream is weak, so it made the price deviate its demand, the large stock became a dangerous signal.

2014 profile of rosin production contract

Because the high open market price of gum rosin, investors were interesting in contracting planting area.

Guangxi: Gum rosin in China more than half of global output, guangxi region is the first main force. Guangxi contracts planting areas with high enthusiasm this year. A preliminary forecast for the number of the area contract around one point four more than that of last year.

Guangdong: Not as enthusiasm as Guangxi. Because the cost rise swiftly in Guangdong where economy was developed. What's more, no more workers want to accept the heavy work with low wage and bad surroundings.

Jiangxi: More new planting areas are developing and clear away the old pine trees. Through this, Jiangxi will attract more investors.

CCM draw that expanding the planting areas of pine trees is good for satisfying the demand of gum rosin, which will help to keep the price stably.

Background

Both oleoresin and gum rosin of China play a key role in the world. The price of gum rosin has been fluctuating in recent two years, so the market is still hot topic. Look back to 2013, price of both oleoresin and gum rosin was not complied with their demand and the domestic demand was weak. Besides, the export hit their historic low and the output continued to decline, this situation was fluctuated.

Statement of report

To clearly describe China's gum rosin industry, CCM has collected lots of information in various ways.

In this report, CCM listed China's gum rosin data in detail:

  • Production of gum rosin in China till 2014
  • 40 local representative enterprises
  • Price of gum rosin in China in China till 2014
  • Import & export situation of gum rosin and its derivatives till 2014
  • Consumption of gum rosin in China till 2014

 By these ways, CCM analysis the China's gum rosin market scientifically. And conclude the regulations of China's gum rosin.

  • Forecast of gum rosin in China till 2018

CCM forecast the development of China's gum rosin by its own ways. A more accurate prediction helps to make a good plan in the future.

Published By: CCM International
Product Code: CCM International1184


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