Xanthan Gum Market Observed Stability in Early August as Downstream Demand Softens

The global market of Xanthan Gum in first half of August has observed mild price correction across the various markets in different regions.  The buying interest was restrained due to a moderate pace of oil drilling activities and the existing inventories at the downstream sectors were well balanced. Xanthan Gum is used to control viscosity, suspend cuttings and improve wellbore stability in oil drilling fluids. The downward movement across the global market was a result of subdued offtake from the oil drilling sector.

The Xanthan Gum inventory levels across both producers and downstream drilling contractors were well-maintained which was carried over from the previous month. These stockpiles reduced the urgency for additional procurement since consumption in the oil drilling sector was not at peak levels. The abundance of available material on hand has reflected that the buyers could delay replenishment...