Rising turpentine prices this year have highlighted its sensitivity to fundamentals in the rosin market.
Turpentine prices have been on the rise owing to higher demand, thin inventories, and softer rosin markets. Shifts in supply and demand for rosin affect turpentine volumes because gum rosin accounts for the biggest production volumes. Both are coproducts from pine oleoresin distillation.
Brazilian elliottii gum turpentine midpoint prices have increased by 29pc to $3,075/t fob Brazil port on 15 October 2025 from a year-ago levels, Argus data shows.
Brazil is a major global supplier of gum turpentine to markets including India, the US, Mexico, Japan and China, and is also a top global gum rosin exporter.
Buyers are worried by rising gum turpentine prices because they find it more difficult to pass the higher feedstock costs on to their final customers.
Availability of both gum turpentine and crude sulfate turpentine (CST) is low this year in key markets like Brazil and the US, unlike in 2023 when buyer and seller stocks were high.
Supply fundamentals, along with higher demand across end markets, have further supported prices at current levels.
Brazilian suppliers have seen increased margins on gum turpentine orders, but sales have only marginally offset weaker gum rosin and stalled gum rosin derivative markets.
Several plants in Brazil reduced gum rosin operating rates because of the decreased demand to key southern European and US derivative markets following the implementation of 50pc US tariffs on Brazilian goods.
Lower gum rosin production and limited pine oleoresin feedstock availability during the off-season in Brazil has further tightened the already thin gum turpentine stocks.
Pulp mill shutdowns in the competing US CST market in recent years have also lowered supply, bringing the US CST price closer to that of Brazilian gum turpentine, buyers said.
The price curves for Brazilian gum rosin and gum turpentine have been similar over time, but the spreads for turpentine over rosin have been increasing since late 2023 and early 2024, although they are far from their 2021 peaks, Argus historical data show.
A rebound in rosin demand could ease some of the upward price pressure in gum turpentine markets, suppliers said. But the current bearish rosin demand scenario could persist through the end of the year as US tariffs on Brazilian goods remain in place.
