Guar Gum Price Increased on Rejuvenation of Demand

As per a recent analysis by ChemAnalyst, the price of Guar Gum has avidly increased in the last few months due to increased demand from end-use industries. The reviving demand from food industries as a source of thickener and gelling agent and tremendous increase in demand from cattle feedstock led the prices to trace an uptrend.

Recently, the price of Guar Gum has increased in India's domestic market due to the subdued rainfall and high heat waves in the region where it is majorly cultivated. It is observed that, scattered rain occurred over parts of North and Northeast Rajasthan during the last week. Gujarat remained largely rain deficient, whereas Madhya Pradesh and Rajasthan are also in the deficient rain category. Moreover, isolated pockets of Western parts of Rajasthan may come under heatwaves, which is anticipated to further influence the market dynamics of Guar Gum in the country.

On the other side, other Asian countries like China have also experienced a surge in the prices of Guar Gum on account of the depletion of product imports globally. China mostly uses Guar Gum in the production of gelling agents in the food industry, which is based on the production of ice-cream jellies, so the demand from these food sectors remained stable despite all the odds, creating a tight supply chain in the domestic market and strong competition to end-use industries.

In the USA, the price is hiked by around 3% for the Guar Gum market owing to the high demand in shale gas production, which is directly dependent on Guar Gum usage. The USA is the leading importer of Guar Gum from India, which is also livestock feedstock, and any shortage to that can lead to inflation in the price of meat and dairy products. The USA also uses Xanthan Gum as an alternative to Guar Gum, by which it is estimated that the price of the Guar Gum will be stable in the domestic market in the upcoming period.

As per ChemAnalyst analysis, it is expected that global Guar Gum prices are likely to remain steady during the forthcoming month, as the current market scenarios are not going to vanish soon, and further weather conditions remain unpredictable.