guar gum Pricing Assessment

Markets Covered: 

inIndia
cnChina
usUnited States
deGermany
brBrazil

Guar Gum Price Trend, Analysis and Forecast

In Q1 2024, guar gum prices exhibited stability during the first half of the quarter, as demand from key industries such as oil and gas, food, and pharmaceuticals remained steady. The market was largely balanced, with sufficient supply and consistent demand. However, towards the second half of Q1, guar gum prices dropped sharply. This decline was primarily driven by reduced purchasing activity, particularly in the oil and gas sector, due to a slowdown in hydraulic fracturing operations, which are a major consumer of guar gum. Additionally, lower demand from the food sector, as well as a slight oversupply in the market, contributed to the price drop as inventories increased.

In Q2 2024, guar gum prices showed signs of recovery in the first half of the quarter. This was attributed to improved demand from the oil and gas sector as drilling activities rebounded. The food industry also continued to show steady demand for guar gum due to its use as a thickening and stabilizing agent. As a result, producers responded with moderate price increases to reflect the improved demand. However, the second half of Q2 saw a gradual price decline as the initial surge in demand from the oil and gas sector plateaued. Prices softened as supply chains adjusted, and demand from some industries, particularly in food applications, was not as strong as anticipated, leading to a more cautious market outlook.

In Q3 2024, guar gum prices increased sharply throughout the quarter, driven by a resurgence in demand, especially in the oil and gas sector. As hydraulic fracturing operations picked up due to an increase in oil prices, the demand for guar gum used as a key proppant in fracking fluids surged. Additionally, demand from the food and pharmaceutical industries remained consistent, further driving the price increases. Limited supply due to harvest challenges in key growing regions, coupled with logistical disruptions, also added upward pressure on prices. The price hike in Q3 reflected both a tightening of supply and the rising costs of production, leading to strong price growth across the quarter. In India, Guar Gum prices were assessed in the range USD 1490-1690 per MT during the quarter.

In Q4 2024, guar gum prices experienced a mixed trend. The first half of the quarter saw stabilization and slight drop in prices as the market adjusted following the price increases in Q3. This decline was primarily due to reduced demand from the oil and gas sector as drilling activities slowed, particularly in anticipation of colder weather and reduced seasonal activity. Additionally, the food industry showed lower-than-expected growth, leading to softening demand. The second half of Q4 saw prices continue to drop, albeit at a gradual pace. Limited trading activity, particularly from small- and medium-sized businesses in emerging markets, resulted in an excess of stock in certain regions, further suppressing prices. The market outlook turned more cautious as economic uncertainty influenced consumer spending, leading to lower prices across the quarter. By the end of Q4, guar gum prices had further dropped, reflecting subdued market activity and oversupply in certain segments.

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is your trusted resource for tracking global guar gum price trends. Our platform delivers real-time data and expert analysis, offering deep insights into the key factors driving price fluctuations in the guar gum market. By monitoring critical events such as geopolitical tensions, supply chain disruptions, and economic shifts, keeps you fully informed of market dynamics.

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Historically, several events have caused significant fluctuations in guar gum prices

COVID-19 Pandemic (2020-2022)

The COVID-19 pandemic, lasting approximately 18 to 24 months from 2020 to 2021, caused significant disruptions in global supply chains, including the market for Guar gum. Lockdowns, transportation restrictions, and labour shortages led to a scarcity of critical raw materials, such as sodium carbonate and hydrogen peroxide, which are essential for Guar gum production. These shortages reduced manufacturing capacity and pushed up production costs. At the same time, there was a sharp increase in demand for cleaning products during the pandemic, as hygiene became a top priority globally. This surge in demand, combined with supply chain challenges, resulted in significant price hikes for Guar gum throughout this period.

Weather-Related Issues (2019-2021)

From 2019 to 2021, unfavorable weather conditions, including droughts and irregular rainfall in India, significantly impacted guar bean crop yields. These disruptions in the key producing regions led to a reduced supply of guar beans, causing price volatility in the guar gum market during this period. The inconsistent weather patterns affected both the quantity and quality of the crops, contributing to fluctuating guar gum prices.

Supply Chain Disruptions (2021-2022)

During 2021 and 2022, global supply chain bottlenecks, including shipping delays and logistics challenges, further disrupted the guar gum market. These issues created shortages in the supply of guar gum and led to significant price increases. The delays in transportation and the strained logistics infrastructure affected the timely availability of guar gum, contributing to heightened price volatility during this period.

Methodology and Specifications

guar gum Pricing Assessment Research Methodology

Data Collection and Sources

  • Real-Time Market Data: PriceWatch aggregates real-time pricing data from a diverse range of sources, including global commodity exchanges, industry reports, and proprietary databases. This ensures that our assessments reflect the most current market conditions.
  • On-the-Ground Intelligence: Our team gathers insights directly from key market participants, including producers, suppliers, traders, and end-users, across major Guar gum production hubs. This ground-level intelligence is crucial for understanding localized market dynamics.
  • Supply Chain Monitoring: We track the entire Guar gum supply chain, from raw material availability (e.g., Hydrogen peroxide) to production and distribution channels. This includes monitoring feedstock prices, production capacities, and transportation logistics.

Event Tracking and Impact Analysis

  • COVID-19 Pandemic: Initial demand drop due to industry shutdowns, followed by a surge in demand for hygiene products, leading to price volatility.
  • Supply Chain Disruptions: Logistical challenges caused production delays and shortages, resulting in price spikes and difficulties in meeting orders.
  • Geopolitical Tensions: Trade disputes, especially between the U.S. and China, disrupted supply chains, creating uncertainty and fluctuating prices.
  • Sustainability Trends: Increased consumer demand for eco-friendly products led to a rise in bio-based Guar gums, pushing prices higher as manufacturers adapted.
  • Raw Material Price Volatility: Fluctuations in key feedstock prices, like palm oil, resulted in increased production costs and unstable market prices.

Production Capacity and Supply Analysis

  • Current Production Monitoring: We maintain a comprehensive database of global Guar gum production facilities, tracking their operational status, maintenance schedules, and output levels. This allows us to assess current supply availability accurately.
  • Future Capacity Projections: Our research includes detailed forecasts of upcoming Guar gum production capacities, factoring in new plant constructions, expansions, and technological advancements. This helps in predicting future supply trends and potential price stabilization.

Demand Forecasting

  • Sectoral Demand Analysis: PriceWatch provides in-depth analysis of demand trends across key sectors, including packaging, automotive, and construction. We track year-on-year demand growth and project future consumption patterns based on economic indicators and industry developments.
  • Global Demand Dynamics: Our methodology considers regional demand variations and how they influence global Guar gum pricing. This includes understanding the impact of shifts in manufacturing bases, trade policies, and environmental regulations.

Pricing Model Development

  • Dynamic Pricing Models: PriceWatch utilizes advanced econometric models to forecast Guar gum prices, incorporating real-time data, historical trends, and projected market conditions. Our models are continuously refined to enhance accuracy and predictive power.
  • Scenario Analysis: We conduct scenario-based assessments to evaluate potential future market conditions. This includes best-case, worst-case, and most likely scenarios, helping our clients prepare for a range of market outcomes.

Reporting and Client Support

  • Comprehensive Reports: Our clients receive detailed reports that include current price assessments, future price forecasts, and in-depth analysis of market drivers. These reports are designed to be actionable, providing clear insights and recommendations.
  • Ongoing Support: PriceWatch offers continuous updates and personalized support to our clients, ensuring they have the most up-to-date information to make informed decisions. Our experts are available to discuss specific market developments and provide tailored advice.

This research methodology ensures that PriceWatch delivers the most accurate, timely, and actionable Guar gum pricing assessments, helping our clients stay ahead of market trends and make informed business decisions.

Specifications

Molecular Weight[g/mol]

50,000 to 8,000,000 g/mol

CAS No

9000-30-0

HS Code

13023230

Molecular Formula

C₆H₁₂O₆

guar gum

Guar gum is a natural polysaccharide derived from the seeds of the Cyamopsis tetragonoloba plant, primarily grown in India and Pakistan. It is a versatile, water-soluble gum widely used in various industries, including food, pharmaceuticals, oil and gas, textiles, and cosmetics. Known for its thickening, gelling, and stabilizing properties, guar gum is a key ingredient in products like sauces, soups, and lotions. The production process involves dehulling the guar seeds, followed by milling to separate the endosperm, which is then processed into guar gum powder. Major producers of guar gum include companies like Vikas WSP, Hindustan Gum, and R.S. Agri. Guar gum is also critical in hydraulic fracturing for the oil and gas industry due to its ability to enhance fluid viscosity.

Packaging Type

25Kg Bag

Grades Covered

Food Grade

Incoterms Used

FOB JNPT (India), CIF Shanghai_India, CIF Houston_India, CIF Hamburg_India, CIF Santos_India

Synonym

Guaran, Cluster bean gum

Quotation Terms:

25-28MT

Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.

Characteristics Specifications
Color White to cream color powder
RIA 3max
Ash 1%
pH (1% solution) 5-7
Brookfield viscosity 1% solution at 25C 5000-5500

Applications

Guar gum has a wide range of applications across various industries. In the food industry, it is used as a thickening, stabilizing, and emulsifying agent in products like sauces, dairy items, and baked goods. In pharmaceuticals and cosmetics, it serves as a binder and thickener in formulations such as creams and tablets. The oil and gas industry uses guar gum as a key component in hydraulic fracturing fluids to improve extraction processes. Additionally, it is used in textiles, paper manufacturing, and explosives as a stabilizing and binding agent, making it a versatile ingredient across multiple sectors.

Disclaimer

Guar Gum price provided by is a base price and excludes VAT/Taxes, discounts, or offers. The information herein is accurate to the best of our knowledge as of the date indicated and is provided solely for the convenience of our customers as a reference for guar gum. disclaims any warranties or representations regarding the accuracy of results derived from this information. It is the sole responsibility of the user to assess the suitability of the product for their specific application. This document does not constitute an endorsement to use the product in violation of any applicable patent rights.

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Frequently asked questions

What factors influence the pricing of guar gum in the global market? +

The price of guar gum is influenced by several factors, including the availability of guar beans, weather conditions in major producing regions like India and Pakistan, and agricultural input costs such as seeds, fertilizers, and labour. Additionally, fluctuations in demand from key industries such as food, pharmaceuticals, and oil & gas also impact prices. Geopolitical issues, transportation costs, and export regulations in producing countries can further contribute to price variations.

How does the scale of procurement affect guar gum pricing? +

Larger volume purchases often result in lower per-unit costs due to economies of scale. Suppliers tend to offer discounts or more favorable terms for bulk orders, which can help procurement heads reduce overall costs. Additionally, long-term contracts or stable supply agreements with suppliers may offer protection against short-term price fluctuations and secure consistent pricing over time.

What are the recent trends impacting guar gum prices? +

Recent trends affecting guar gum prices include fluctuating demand from the oil & gas industry, particularly for use in hydraulic fracturing, as well as rising agricultural input costs and weather-related disruptions in key growing regions. Additionally, supply chain disruptions and global trade policies have contributed to price volatility. Monitoring these trends can help procurement heads anticipate price movements and make informed purchasing decisions.

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