Texas, (US): Tall Oil Rosin prices have continued to experience an uptick across the North- American market in the last month of Q2 2024 owing to depletion in inventory level and a significant increase in freight expenses. However, demand from the downstream industry has shown a mixed signal throughout the month. Looking ahead, several players anticipate prices of Tall Oil Rosin might remain on a firm note in the regional market in the hope of a rise in freight rates. Furthermore, demand from the downstream industry is expected to gain some momentum in early Q3 of 2024 which might further boost the market sentiments of Tall Oil Rosin across the regional market.

According to ChemAnalyst's latest database, prices of Tall Oil Rosin have showcased an increment of USD 24/MT across the US domestic market as prices increased in the exporting market. The domestic demand for Tall Oil Rosin from the downstream paper and pulp as well as from the inks and toners industry has been moderate in the domestic market due to steady consumption from the printing sector. However, at the same time inquiries from the paints and coating, adhesives as well as from the rubber industry have been observed on the lower edge as consumption from the automotive and construction sectors was below seasonal expectations.

Regarding production, the operating in the exporting market notably Asia have remained under pressure amid global economic uncertainties. Moreover, imports from the Asian market have also reduced in the US ports as congestion at key Asian container ports was worsening, with berthing delays increasing at Chinese and Southeast Asian hubs. Additionally, waiting times have also increased across all major Chinese port regions, with Shanghai and Qingdao experiencing the longest delays. On the other hand, the tightening of vessel space from Asia has sent the Shanghai Containerized Freight Index (SCFI) to its highest level since September 2022.

Several market players reported, that imports from Latin America including Brazil have also eased as production of Tall Oil Rosin has been impacted by the adverse weather conditions in Southern Brazil resulting in the supply shortage in the US domestic market, keeping the Tall Oil Rosin prices elevated. Therefore, prices of Tall Oil Rosin CFR Texas were settled at USD 944/MT during June 2024.

In the forthcoming month, ChemAnalyst anticipates, that prices of Tall Oil Rosin are expected to increase across the US market. The demand for Tall Oil Rosin from the downstream paper and pulp as well as from other industries is expected to recover against the backdrop of seasonal demand. Moreover, imports from the export market might remain costly amid further expectations of a rise in freight charges. Furthermore, the availability of Tall Oil Rosin is expected to be inadequate to cater to overall downstream demand which may further support the prices to follow an uptrend.