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BrazilIn 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.
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 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 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.
PriceWatch 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, PriceWatch keeps you fully informed of market dynamics.
In addition, PriceWatch provides detailed forecasts and updates on production capacities, enabling you to anticipate market changes and make well-informed decisions. With PriceWatch, you gain a competitive edge in understanding all the elements that influence guar gum prices worldwide. Stay ahead of the curve with PriceWatch’s reliable, accurate, and timely guar gum market data.
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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.
This research methodology ensures that Price-Watch delivers the most accurate, timely, and actionable Guar gum pricing assessments, helping our clients stay ahead of market trends and make informed business decisions.
Molecular Weight[g/mol]
CAS No
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Molecular Formula
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
Grades Covered
Incoterms Used
Synonym
PriceWatch Quotation Terms:
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.
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.
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.
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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