We have reports that indicate low demand from China for Menthol powder has lessened production of DMO and Menthone. Accordingly current prices for DMO are high. With new crop not due until June the report states that prices will continue to firm.
Our report of 1/19 advised that in the growing regions of Guangdong, Jiangxi and Fujian, there was a slight decrease in Gum Turpentine pricing. Cited for the reason why was several Gum Resin plants needed cash. Prices for derivatives are still firming.
Reports indicate that prices have jumped; availability lessens every month due to the damage caused by the Tsunami and El Nino.
With El Nino in control thru at least the end of February, heavy rains have hampered harvesting of leaves. Reports indicate that processors are competing against each other, trying to secure crude oil. Prices for Clove Leaf Oils, Eugenol, Iso Eugenol, Stem, Bud etc. are expected to firm.
Reports indicate that low prices that were offered discouraged farmers, so very little has been produced. Prices are firming and expected to rise as stocks are depleted.
Prices here are also firm as crop off due to heavy rains.
Reports continue to state that current crop will be small, hampered by rain. They also advise that factories are not willing to negotiate, believing prices will continue to firm.
Lack of demand has kept prices stable, although high. Reports continue to advise carryover keeps diminishing. With new crop not due until end-August, September would expect this trend to continue.
The easing of prices that occurred in early December has reversed. Stocks from December have been consumed. With the approach of Chinese New Year prices have firmed.
With reports of large crop, prices for both oil and terpenes have softened.
