Cenangium ferruginosum

About

Cenangium ferruginosum is a species of fungus which infects young twigs of especially older pines. It, along with Cenangium atropurpureum, causes the disease Cenangium canker. The parasite lives under the bark of the trunk and spreads out further i.e. bark of branches up to the fresh twig tips of needles. The needles turn brown at the base, and the needles on the twig tips die off in time.

Summary from Wikipedia