Summary: Recently, domestic rosin prices have continued to undergo minor corrections. Although inquiries for pressure-sensitive adhesives at the end-user level have increased, transaction volumes have not risen, and the rosin resin market remains weak.

During the week, Masson pine rosin prices continued to decline. This was due to: first, the gradual supply of fresh resin from Masson pines; second, the low enthusiasm of rosin factories for collecting resin, which drove down resin prices; and third, the strengthening bargaining power of end-users, leading to a concentrated bearish outlook on prices. For slash pine rosin, sparse orders for rosin resin caused operating rates to drop to 30-40%. Downstream players continued to hold a bearish view on prices, with low market transaction volumes. Some industry participants became more willing to sell and accepted lower prices, leading to a sustained decline in negotiated prices.

Regarding rosin resin, first, the downward trend in raw material rosin reduced costs; second, scarce downstream orders and continuously falling petroleum resin prices resulted in a bearish market sentiment, with negotiated prices continuing to slide.

As for petroleum resin, the mainstream price of C5 petroleum resin for adhesives dropped by 500 yuan to 10,000-12,500 yuan/ton. The transaction price of decyclized C5 petroleum resin was 9,000-10,000 yuan/ton, and hydrogenated petroleum resin fell to 11,000-12,000 yuan/ton. End-user demand was mainly for small lots meeting essential needs, and there was no significant improvement in petroleum resin sales.

Comparing the recent price trends of rosin resin and petroleum resin, the decline in rosin resin prices has clearly slowed. This is due to, first, support from rosin prices, and second, the overall operating rate falling below 50%, significantly reducing supply. However, from the downstream perspective, end-users have not yet placed bulk orders and still expect adhesive product prices to weaken further. Adhesive manufacturers still face cost pressures, and petroleum resin prices remain significantly higher than pre-crisis levels. In the short term, end-user demand dominates the overall market, and their bargaining power remains strong.

In summary, rosin prices continue to weaken, but the downside space is narrowing. End-users report almost no new orders, and petroleum resin manufacturers are still actively selling, making it difficult for prices to find support. Since rosin resin did not fully follow the decline in rosin earlier, rosin resin prices in July are expected to continue declining in small, frequent increments.