Guar Gum Prices Decline in May 2023 Amid Ample Supplies in the USA

The price of Guar Gum in the USA declined in May 2023, reaching its lowest level in over a year. Guar seed prices have fallen by around 10% since the beginning of May 2023, while Guar Gum prices have fallen by around 5%. This decline is due to several factors, including increased supply, weak demand, and a stronger US dollar.

India is the world's largest producer of Guar Gum, and production has been increasing in recent months. This has led to an increase in the global supply of Guar Gum, which has put downward pressure on prices. The oil and gas industry, a major consumer of Guar Gum, has been facing some challenges, leading to decreased demand for the product. The US dollar has been strengthening against other currencies in recent months, which has made Guar Gum more expensive for buyers from other countries. This has also led to decreased demand for the product in the USA.

The International Trade Centre (ITC) has released a report that predicts that Guar Gum prices in the USA will remain weak in the near future. The report cites increased supply from India, weak oil and gas industry demand, and a stronger US dollar as the main reasons for the price decline.

Guar Gum is a byproduct of guar seed used in the oil and gas industry. The decline in crude oil prices has led to a decline in the demand for guar seed oil, which has led to a decline in the demand for Guar Gum. The global economy is currently facing several challenges, including the war in Ukraine. This has led to decreased demand for a variety of products, including Guar Gum.

The Guar Gum market is facing bearish sentiments amid the decline in crude oil prices. Guar Gum is a gum extracted from the guar plant in India and Pakistan. It is a thickening agent used in various products, including food, cosmetics, and industrial applications. The food and beverage industry is a major user and is expected to grow in the coming years.

According to ChemAnalyst, the decline in Guar Gum prices is expected to continue soon, as the factors currently driving down prices are not expected to change significantly. However, the market is expected to remain volatile, as prices could fluctuate based on changes in supply and demand. The outlook for the Guar Gum market is uncertain. Also, the decline in crude oil prices is not expected to reverse anytime soon, and the weak global economy is also likely to continue to weigh on demand. Additionally, the increase in production will likely keep the supply of Guar Gum elevated. This could harm the Guar Gum industry, as producers may face lower profits, and some producers may be forced to close their businesses.