2. “ The goal of forecasting is not
to predict the future but to tell
you what you need to know to
take meaningful action in the
present. ”
Paul Saffo
Six Rules for Accurate Effective Forecasting
Harvard Business Review,
July-August 2007, 122-131
3. PINE FOREST (natural or planted)
CRUDE GUM (CG)
(Pine oleoresin or Pine resin)
Pine Tapping Timber
Paper
Chips
Kraft
Process
Black Liquor
TALL OIL ROSIN
(TORA)
SULFATE
TURPENTINE
(CST)
Industry
GUM ROSIN
(GR)
(CGR, IGR, BGR)
GUM
TURPENTINE
(GT)
Rosin Plant
Industry Industry Industry
ROSIN RESINS
(RR)
POLITERPENIC
RESINS (PTR)
TURPENTINE
DERIVATIVES
Pine
Chemicals
Alex CUNNINGHAM
alexcunn@gmail.com
30 OCTOBER 2012
4. Pine Forest
Pine resin
Tapping
Kraft
Process
Black Liquor
Tall Oil Rosin
Sulfate
Turpentine
Industry
Turpentine
Industry
Rosin
Resins
Polyterpenic
Resins
Industry Industry
Rosin
Petroleum
Petrochemistry
Pygas
(C5, C9, DCPD)
Hydrocarbon Resins
C5 or C9
Industry
“Pine
Chemicals”
TACKIFIER RESINS
AlexCUNNINGHAM
alexcunn@gmail.com
30OCTOBER2012
5. Volumes and Prices
China the #1!
2012 into a “New Normal”
Field open for new(old) players
6. Volumes and Prices
China the #1!
2012 into a “New Normal”
Field open for new(old) players
7. TACKIFIER RESINS [KTON]
ROSIN RESINS 1.090
HYDROCARBON
RESINS
1.050
POLYTERPENIC
RESINS
80
TOTAL 2.220
ROSIN RESINS [KTON]
GUM ROSIN 690
TALL OIL ROSIN 390
WOOD ROSIN 10
TOTAL 1.090
HYDROCARBONIC [KTON]
ASIA 452
NORTH AMERICA 241
EUROPE 252
REST OF THE
WORLD
105
TOTAL 1.050
POLYTERPENIC [KTON]
USA 30
EUROPE 20
REST OF THE
WORLD
30
TOTAL 80
TACKIFIER RESINS – GLOBAL VOLUMES IN KTON (2011)
Source:
• AR Eldorado (2011) & (2012)
• Baumassy (2012).
Alex CUNNINGHAM
alexcunn@gmail.com
30 OCTOBER 2012
8. 1997 2007 2008 2009 2010 2011 2012 +5 +10
China 535.000 826.000 589.000 553.000 575.000 710.000 450.000
Brazil 40.000 78.000 67.000 67.000 69.000 70.000 70.000
Indonesia 69.000 56.000 55.000 55.000 52.000 52.000 52.000
Vietnam 15.000 30.000
India 33.000 35.000 35.000 35.000 33.000 31.000 30.000
Mexico 22.000 16.000 16.000 16.000 22.000 22.000 22.000
Argentina 21.000 9.000 9.000 9.000 11.000 13.000 22.000
Other 46.000 17.000 17.000 13.000 15.000 17.000 21.000
TOTAL 766.000 1.037.000 788.000 748.000 777.000 930.000 697.000
+ 35,3 % - 24,6 % - 5,1 % + 3,4 % + 19,7 % - 32,2 %
GUM ROSIN – GLOBAL PRODUCTION [TM/YEAR]
Surces:
• Song Lifeng (2009) & (2012)
• Rosineb (2009)
• AR Eldorado (2011) & (2012)
• Baumassy (2012).
- 36 % ?!
Alex CUNNINGHAM
alexcunn@gmail.com
30 OCTOBER 2012
17. CHINA – PINE TAPPER
1 WORKER
1500 TREES
2 KG PER TREE/YEAR
PINE TREE “RENT”
6 RMB / TREE YEAR = (9.000)
“ADMINISTRATION” COST
500 RMB / MT PINE RESIN * 3 TON = (1.500)
SALE OF PINE RESIN TO ROSIN PLANT
3 ton * 8.300 RMB / MT = 24.900
===========
NET 14.400 RMB
/ 25 DAYS * 6 MONTH = 96 RMB/DAY
18. CHINA – PINE TAPPER
1 WORKER
1500 TREES
2 KG PER TREE/YEAR
PINE TREE “RENT”
6 RMB / TREE YEAR = (9.000)
“ADMINISTRATION” COST
500 RMB / MT PINE RESIN * 3 TON = (1.500)
SALE OF PINE RESIN TO ROSIN PLANT
3 ton * 8.300 RMB / MT = 24.900
===========
NET 14.400 RMB
/ 25 DAYS * 6 MONTH = 96 RMB/DAY
CURRENT PINE RESIN
PRICE IN CHINA