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Guar Gum Price Trend and Forecast
Get the latest insights on price movement and trend analysis of Guar Gum in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).
Guar Gum Price Trend for the October - December of 2023
The price trend for Guar Gum recorded a downward trajectory during the fourth quarter of 2023 as opposed to the anticipated incline in market prices. The prices initially inclined during the August-September months as the suppliers actively hoarded the contents in anticipation of adverse weather conditions leading to crop failures and decreased yields. However, with the coming of the October-November harvest season, no crop failures owing to severe weather conditions were seen, and a fairly good harvest was recorded.
The arrival of new products in the market caused the suppliers to release the hoarded stocks in order to cushion their profits, thereby decreasing the overall guar gum prices in the Indian market. Since India is the biggest producer and exporter of guar seeds, the declining market trend affected the pricing fundamentals in the European and US markets, too. Further, the reduction in the number of oil rigs in the US caused the demand to dwindle, thereby affecting the guar gum prices.
In comparison with the historical figures, the guar gum prices remained subdued for most of 2023 as compared to the previous years. However, this narrative is expected to change in the coming year due to the decreased volume of carry-forward stocks. In the 2023 Kharif season, the acreage of guar seeds went from 3.1mlh to 2.8mlh in Rajasthan (the top producing state) while it declined from 104,040 ha to around 95,250 ha in Gujarat. This decline was attributed to the excess rainfall during September, which damaged the crops. Hence, the low carry forward stocks coupled with rising demand will likely positively influence the guar gum prices in the coming year.
According to Procurement Resource, the price trend for Guar Gum are expected to incline in the coming months, given the rising demands from the US and European markets. The lowering interest rates coupled with the increased demands for protein rich guar meal from the importing nations will likely drive the export volume for India and positively influence the pricing fundamentals.
Guar Gum Price Trend for July-September of 2023
Guar gum, derived from guar beans, is a versatile industrial ingredient with widespread applications. Its primary use lies in the food industry as a thickening and stabilizing agent, enhancing texture and shelf life. Additionally, guar gum finds extensive utility in various industrial sectors, including paper manufacturing, textile processing, and oil and gas extraction.
Thus, its price trajectory is dictated by the combined result of the market activities of guar seeds and their industrial applications. In the third quarter of 2023, the guar gum price trend experienced a significant decline with the decline in guar seed prices. This was linked to an increase in supplies from growing regions. The fall in the guar gum price trend was also influenced by destocking activities adopted by the traders amid weak market conditions, which was further escalated by the slackened demand and ample supplies from growing regions.
According to Procurement Resource, the price of Guar Gum is estimated to decline in the upcoming quarters as the demand is muted while the supply is excessive.
Guar Gum Price Trend for the First Half of 2023
During the first quarter of the year 2023, significant improvement was observed in Guar Gum market trend as the prices rose, driven by inclined demands from the food and beverage sectors. Demands rosea suppliers increased their procurement to maintain the market flow owing to the impending Lunar New Year Holidays in China. But as the quarters changed, the price trend reversed, and the momentum shifted downwards. The consumer demands didn’t grow after a certain point, and the product overflow forced the suppliers to discount the prices in order to vacate the stockpiles.
H1’23 began with excess inventory stocks since the market offtakes were very limited, and the feeble query count didn’t promise any improvements in the nearsighted future. The price trend were set on a declining trajectory and fluctuated at the lower end of the price graph. A considerable slip in production costs also facilitated this fall in Guar Gum prices. As the crude oil and energy prices started stabilizing in the struggling European markets, the upstream processing got cheaper, which took away the crucial cost support. Overall, declining market sentiments were experienced.
The North American Guar Gum market almost replicated the European market trend. The general trend was declining with lower demands from the consumption sector. However, the end of the second quarter saw some reverse fluctuations as the prices showed some positive movement since the inventories started vacating.
According to Procurement Resource, with the variations in Guar Gum prices across the different markets globally, the prices are likely to continue fluctuating going forward.
Guar Gum Price Trend for the Second Half of 2022
Guar Gum is sourced from Guar seeds and has multiple applications across various industries like food, beverage, pharmaceuticals, cosmetics, personal care, etc. During the second half of 2022, the Guar Gum prices oscillated in the Asian region. After starting slowly at the beginning of the third quarter, the market gained some momentum in the second half of Q3’22. However, as the quarters shifted, the prices started declining again, riddled by significantly low demands. A setback to the Chinese industries by the long and strict Covid containment lockdown led to this decline in demands. Overall, market sentiments were muted for the majority of the discussed period.
The European Guar Gum markets experienced mixed price trend throughout the said period. The prices rose in the third quarter, influenced by the heightened inflation in the region caused by the curtailed Russian oil supplies. But as the year-end arrived and the quarters shifted, the market momentum also got reversed. Owing to the market’s instability, the consuming sector struggled and hesitated to procure more products; hence, the prices slipped during the fourth quarter.
On the contrary, Guar Gum prices remained on an inclined trajectory for the entire discussed period. Even though the upward fluctuations were within a limited range, the overall market sentiments were very positive, with a healthy supply and demand dynamic.
According to Procurement Resource, with the given variation in Guar Gum market trend, the prices are likely to fluctuate in the coming months as well.
Guar Gum Price Trend for the First Half of 2022
The market for guar gum showed an irregular pricing trajectory in the first quarter of 2022. At the beginning of the first half of Q1, prices indicated steady market sentiments with the supply and demand sides in balance. With the start of the pandemic later in the second half, prices of guar gum displayed mixed emotions.
The market for guar gum displayed an increased price trajectory in the second quarter of 2022. The end-user industries later encountered stronger demand with constrained supplies toward the conclusion of the second half, which influenced prices. Guar gum prices were seen to reach 147400 USD/MT Ex-Jodhpur (India) at the end of Q2.
The price trend for Guar gum were constant throughout the first quarter of 2022 with mildly operating supply and demand factors. Prices were lower at the start of Q1 because there was less demand than there was supply. However, as the second half got underway, the epidemic started to make a comeback, which led to a spike in the price of Gaur gum on both the domestic and international markets. Prices were listed as being 2235 USD/MT CFR Hamburg at the end of Q1.
The prices were closely correlated with supply and demand in the second quarter of 2022. Strong demand and high offtakes compared to supply at the start of Q2 led to higher prices. Prices of guar gum were recorded as 2656 USD/MT FD Rotterdam at the end of Q2.
The price trend for guar gum showed an upward trajectory with minor fluctuations in the first quarter of 2022. Prices were on the lower end at the start of Q1 since there was less supply due to stocked-up stocks than there was demand.
As the pandemic reemerged later in the first quarter, production fell, consumption increased, and carryover stock decreased when compared to the previous quarter. The general price trajectory was seen to be on the higher side at the end of Q1.
Guar gum prices showed an upward price trajectory with minor fluctuations in the second quarter of 2022 averaging 2856 USD/MT CFR New Orleans.
For the Fourth Quarter of 2021
In the second week of December, its futures fell in tandem with crude oil futures prices. The December futures were traded at 10,110 USD, down 2.54% from the previous close of 10,373 USD on the National Commodities and Derivatives Exchange (NCDEX). Because guar gum is utilised in oil extraction, its price drops as crude oil prices decline.
For First, Second and Third Quarters of 2021
Guar gum prices declined by 59 INR to 6,137 INR/five quintal in the last week of January, as dealers offloaded their positions in response to a negative trend in the spot market. The prices in February dropped by 59 INR, or 0.95%, to 6,137 INR/five quintal on the National Commodity and Derivatives Exchange.
Guar gum prices rose about 20% in August, driven by demand for guar meal from the poultry and animal feed industries, as well as concerns about a reduction in crop yield due to a lack of rain in western Rajasthan, the key growing region for guar seeds.
September futures price declined 517 INR to 9,080 INR/five quintal, as dealers sold their positions in response to the negative spot market trend.
For the Year 2020
Throughout 2020, guar split price was stable with little fluctuations. The price volatility was caused by speculation about the crop size for this year's Kharif season, crude oil prices, the international demand situation, and the supply of guar in local markets based on the arrival of the fresh crop from this season. In October, the average price was 62.125 INR/kg (0.854 USD/kg). Guar gum prices were erratic due to their reliance on exports.
The prices had been relatively steady in the range of 53-68 INR/kg since June 2020. Because the area sown under guar during the 2020 kharif season was lower than the previous year, and as farmers chose cultivating other crops because prices were lower, new guar crop production was predicted to be lower than the previous year's crop.
In addition, the industry had a large carry forward stock. Guar Gum is primarily used by the oil drilling sector, which had been severely impacted by the pandemic. As a result, natural gums were used in a wide range of food applications.
Procurement Resource provides latest prices of Guar Gum. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.
Guar Gum, a galactomannan polysaccharide, is a free-flowing off-white powder produced from guar beans. It is the ground endosperm of the guar plant seed. It has thickening, nongelling, and stabilising properties, which make it suitable for use in food, feed, and industrial applications.
It serves as a versatile polymer in the food industry and is added to food products, such as ice cream, milk shakes, yogurt, and aerated desserts, among others. As guar has more galactose branch points, it is relatively more water-soluble than other gums, and acts as a better emulsifier.
|Food and feed applications, Thickening and stabilising agent, Textile and paper industry, Explosives industry, Pharmaceutical applications, Cosmetics and toiletries industries, Hydraulic fracturing
|Agro Gums, Haryana Guar Gum & Chemicals, Cargill, Incorporated, Chimique India Ltd, TIC Gums, Inc., Nuevo Polymers Pvt. Ltd.
|Asia Pacific: China, India, Indonesia, Pakistan, Bangladesh, Japan, Philippines, Vietnam, Iran, Thailand, South Korea, Iraq, Saudi Arabia, Malaysia, Nepal, Taiwan, Sri Lanka, UAE, Israel, Hongkong, Singapore, Oman, Kuwait, Qatar, Australia, and New Zealand
Europe: Germany, France, United Kingdom, Italy, Spain, Russia, Turkey, Netherlands, Poland, Sweden, Belgium, Austria, Ireland Switzerland, Norway, Denmark, Romania, Finland, Czech Republic, Portugal and Greece
North America: United States and Canada
Latin America: Brazil, Mexico, Argentina, Columbia, Chile, Ecuador, and Peru
Africa: South Africa, Nigeria, Egypt, Algeria, Morocco
|US$ (Data can also be provided in local currency)
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In order to produce Guar Gum, the guar seeds are mechanically dehusked, hydrated, milled and screened. Guar Gum is usually produced as a free-flowing powder with off-white appearance. The guar plant (Cyamopsis tetragonoloba) seed is mainly grown in India and Pakistan, and is also found across different parts of the world.
The displayed pricing data is derived through weighted average purchase price, including contract and spot transactions at the specified locations unless otherwise stated. The information provided comes from the compilation and processing of commercial data officially reported for each nation (i.e. government agencies, external trade bodies, and industry publications).
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Phone:+1 307 363 1045
Phone: +91 1203185500
Phone: +44 7537 132103