Ongoing Monsoon Disturbance in India Affected the Guar Gum Market Value Globally

As per ChemAnalyst, the price of Guar Gum has avidly increased owing to the hike in demand and less production. The increase in prices is due to the limited supply and high demand from the downstream industries, as Guar Gum is used as a thickener and stabilizer in pharmaceuticals and food industries.

In India, the price of Guar Gum increased by 5.1% during the first week of June because of an expansion in oil stock count, tight stocks, and bullish unrefined petroleum costs. Additionally, normal rainstorm assessment keeps the costs ordinary, however firm product interest, contracting appearances, and tight stocks drive more exorbitant costs. The expansion sought after for the feedstock for cattle and poultry farming is driving the market worth of Guar Gum. The cost of Churi and Korma, the animal feedstock produced using Guar Gum, has kept the edges tight for the Guar Gum market value in the domestic market of India.

Recently, China has also experienced a surge in the prices of Guar Gum by 4.5% during the first week of June because of its dependency on India for its import. China imports most of the Guar Gum from India, and India is suffering from the increased price of the Guar Gum in its domestic market. Demand from the food and pharmaceutical industries is compelling in China's domestic market as the lockdown norms have eased since June 3rd. The delay in freight transit increases fright cost and has supported the increase in the product price.

In the USA, the price hikes by 3.3% during the first week of June. According to the ChemAnalyst data set, it is assessed the cost increment is because of an expansion in the shale gas utilization for creating power which has further expansion in utilization of oil among individuals. A critical flood in the quantity of oil-subordinate enterprises and the wide use of shale gas for domestic and cooking designs is driving the market worth of Guar Gum generally. Guar Gum is used to extract Shale gas in the domestic market of the USA. The USA imports Guar gum majorly from India, and India is already suffering from surged prices, so this factor is also hampering the market value of Guar Gum, leading to the hike in the price of the import product.

As per the ChemAnalyst survey, it is anticipated that global Guar Gum prices will likely remain steady during the upcoming month, as the current market scenarios are not going to vanish soon, and further weather conditions remain unpredictable in India.