2010 São Paulo Meeting & Webinar

What is going on with the Chinese Pine Chemicals market?

May 14 / 2010; Itapetininga, Brazil.

Chinese Gum Rosin (CGR)

Rosinnet quotation price for Chinese Gum Rosin (CGR) (blue line = local & red line = export market), has reach in May his historic highest value in the recent 15 years; bringing a lot of atention to the future of this market, that in our opinion is not going to retreat back to last year levels, only because of the new chinese crop of Crude Gum (Pine Oleoresin) that starts next June. We think that more structural reasons have produced this unprecedent price rise, including limited forest resource, labor shortage, local consumption and why not price speculation driven by easy bank loans.

Lets see what we can learn in our trip to China, later this month, to participate and present a paper about the Brazilian Pine Chemicals market at the 2010 China Gum Rosin Trade Conference - May 26 to 30, 2010; Huangshan, Anhui, China. More than 200 delegates are expected. After the trip we are going to meet in São Paulo on June 24ht, and brainstorm about the current situtaion. Check this link for further details.

Acrylics market shortened

"The global acrylics market shortened dramatically in recent months. A string of unexpected production problems restricted the availability of acrylic acid. This is limiting the feedstock for important derivatives, like 2-ethylhexyl acrylate (2-EHA) and butyl acrylate (BA), which are used in the formulation of pressure sensitive adhesives and sealants. Industry experts do not anticipate any easing of the supply shortage until well into Q3. The ongoing shortage, along with escalating feedstock propylene costs and tightness in the oxo-alcohols supply, is leading to significant price inflation. This, in turn, is affecting the cost of adhesives." Via Industrial Adhesives Raw Material Facts, Special North American Bulletin - May 2010; Henkel.

Pinus Letter

April 23, 2010. Studies about pine tapping.

Hot Melt Raw Material Availability

Via SpecialChem; Andrew Extance - Mar 10, 2010
"..Tackifying resins play a crucial role in providing initial adhesion for hot melts. Supply of C5-C9 hydrocarbon based varieties is also being restricted due to the move to light cracking feeds. Not only is less volume of these fractions being produced, but the content of useful chemicals in them has fallen. Tackifier manufacturers must therefore raise input volumes to maintain output. Consequently, one producer has imposed sales controls on C5 tackifiers, and more price increases are expected..."

The Tackifier Domino Effect

A very clear figure in Adhesives Raw Materials Facts, Vol.7 Issue 1 - March 2010; from Henkel, show how the rising price of C9 resins because of shortage in heavier petrochemical feedstoch, produces a "domino effect" that reflects sequencially on rising costs of rosin esters, C5 resins and hydrogenated versions of these resins.