Guar Gum Price Trend and Forecast

Regional Price Overview

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).

For the First Half of 2022

Asia

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.

Europe

The price trends 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.

North America

The price trends 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

Asia

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

Asia

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

Asia

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.