For the Quarter Ending March 2024
North America
Throughout the first quarter of 2024, the Guar gum market in North America experienced a generally declining trajectory. Market prices fluctuated, with a notable trend being observed. The latest quarter-ending price for Guar gum CFR Houston in the USA was USD 1885/MT, showing an average quarterly decline of 0.06%.
Key factors affecting these prices included supply and demand dynamics. While there was a moderate to high supply of Guar gum, demand from downstream sectors remained relatively low to moderate, resulting in a slightly weakened pricing environment. Global market dynamics, particularly changes in China's pricing strategies and reduced international demand, also influenced US market prices. The strength of the US dollar against other currencies facilitated advantageous import opportunities. Market players engaged in inventory management practices as the quarter ended, aiming to destock inventories and prepare for replenishment with fresh supplies, which helped optimize inventory levels and maintain market liquidity.
However, prices did increase steadily in January due to geopolitical tensions and trade disruptions. Export challenges, such as shipping lines rerouting ships to avoid the Red Sea, led to higher shipping costs, order cancellations, delays in container movement, and an uncertain outlook. Container freight rates also impacted industries reliant on maritime transport. Additionally, the prices of the raw material phosphoric acid were decreasing during this period.
Asia Pacific
In Q1 2024, the Guar gum market in the APAC region, particularly in China, experienced notable price fluctuations but maintained a pessimistic trend, with prices steadily dropping down. By the end of the quarter, Guar gum's price in China reached USD 1460/MT FOB Shanghai, showing an average quarterly decrease of 1.31%.
In the beginning of the year, Guar gum prices in China saw a consistent decrease because of lower demand and surplus stock caused by year-end destocking. Key reasons for this included strategic inventory cuts and reduced demand from various industries, aggravated by declining Guar seeds prices and fewer orders from Western and Northern markets. Competition among producers intensified due to oversupply, driving prices down further. Normalized freight charges, previously inflated due to geopolitical tensions, also eased, contributing to the price decline. Despite the relief from past supply issues, ongoing weak demand remains a significant challenge to market stability. Industry insiders suggest that domestic producers ramping up operations after turnarounds and outages partly contribute to the improved supply situation.
However, in February 2024, Guar gum prices surged marginally due to increased demand, low inventories, halted production during the Chinese Lunar New Year, rising freight charges, and currency depreciation. Post-holiday purchasing sprees and strategic currency utilization boosted market confidence, with suppliers adjusting prices accordingly. Increased Guar seeds prices also supported Guar gum costs, highlighting the need for stakeholders to navigate uncertainties with strategic decisions amidst market fluctuations.
Europe
The pricing dynamics of Guar gum in the European market during the first quarter of 2024 have been influenced by various factors. By the end of the quarter, the latest price for Guar gum CFR Hamburg in Germany stood at USD 1620/MT, showing an average quarterly incline of 0.11%.
Overall, there has been a negative pricing trend, with prices showing a decrease compared to the same period last year. This decline is primarily attributed to significant price reductions seen in key exporting regions, notably the Asia-Pacific (APAC) region, which has had a notable impact on global Guar gum markets. During this quarter, the market experienced a substantial price decrease due to reduced demand from downstream sectors and the Euro's depreciation against the USD, leading to higher costs of imported goods. Additionally, seasonal factors such as pre-Lunar New Year and spring holidays in exporting nations have prompted market participants to destock inventories at discounted rates, further contributing to the price decline.
Although there was an initial price increase in January, attributed to supply chain disruptions like shipping line rerouting and disruptions in the Red Sea region, prices decreased overall within the quarter compared to the previous one in 2024.
For the Quarter Ending December 2023
North America:
The final quarter of 2023 posed significant challenges for the Guar Gum market in North America, with various factors impacting market dynamics and pricing during this period. Firstly, the global economy grappled with uncertainties, such as escalating inflation and apprehensions about a potential recession. These uncertainties triggered cautious investor behavior, leading to a decline in stock prices. Moreover, the Federal Reserve implemented successive interest rate hikes, potentially resulting in slower economic growth and diminished corporate profits.
A pivotal aspect of this scenario was the proactive approach adopted by market participants, who prioritized clearing their inventories before entering the new year of 2024. This strategic move ensured that the industry commenced January with a clean slate, free from excess stock and in alignment with anticipated market conditions. Adding complexity to the situation were upstream factors, particularly the decrease in Guar seeds prices. The month of December witnessed a consistent decline in Guar seeds prices due to continuously waning demand.
However, prices rebounded in the middle of the fourth quarter due to persistent supply chain disruptions, including port congestion and container shortages, which kept the market tight. These challenges led to escalated transportation costs and prolonged delivery lead times, contributing to a surge in prices. Furthermore, businesses proactively restocked their inventories through substantial order placements, further fueling robust market demand. In terms of specific pricing trends, the Guar Gum CFR Houston price in the USA for the current quarter stands at USD 1890/MT, reflecting an average quarterly decline of 1.91%.
Asia Pacific:
The Guar Gum market in the APAC region faced various challenges in the fourth quarter of 2023, leading to a weakened and consolidated market throughout the period. The trajectory of Guar gum during Q4 was notably pessimistic, marked by a series of obstacles that overshadowed the industry. A significant decrease in orders, both from regional and international markets, played a pivotal role in this downturn. Consequently, there was an excess of Guar gum, prompting producers to implement drastic measures to clear inventory and navigate the challenging market conditions.
The immediate consequence of this oversupply was a downward trend in prices in exporting nations, posing a substantial threat to the profitability of Guar gum producers in importing regions. The surge in Guar gum production in the previous months intensified market competition, compelling producers to cope with reduced prices. Further complicating the situation, domestic raw material Guar seeds market prices remained weak and continued to decline.
Downstream trading entities adopted a wait-and-see attitude, leading to a subsequent fall in Guar gum market prices. However, in the middle of Q4 2023, there was an overall improvement in demand driven by increased consumer spending and investment, resulting in a moderate to high demand for Guar Gum in the region. Additionally, a tight supply situation with low to moderate levels of inventory contributed to the increased prices towards the end of the quarter. The quarter-ending price for Guar Gum CFR Shanghai in China was USD 1520/MT, with an average quarterly decrease of 2.24%.
Europe -
The final quarter of 2023 presented significant challenges for the Guar Gum market in Europe, with various factors impacting market dynamics and pricing during this period. A crucial element of this situation was the proactive approach taken by market participants, prioritizing the clearance of their inventories before entering the new year of 2024. This strategic move ensured that the industry started January with a clean slate, devoid of excess stock and in accordance with expected market conditions.
Adding complexity to the scenario were upstream factors, particularly the decline in Guar seeds prices. The month of December witnessed a consistent decrease in Guar seeds prices due to continuously decreasing demand. The global economy faced uncertainties, such as rising inflation and concerns about a potential recession. These uncertainties prompted cautious investor behavior, resulting in a decline in stock prices. Additionally, the Federal Reserve implemented successive interest rate hikes, potentially leading to slower economic growth and reduced corporate profits.
However, prices rebounded in the middle of the fourth quarter due to persistent disruptions in the supply chain, including port congestion and container shortages, which kept the market tight. These challenges resulted in increased transportation costs and extended delivery lead times, contributing to a surge in prices. Furthermore, businesses proactively replenished their inventories through substantial order placements, further driving robust market demand. Regarding specific pricing trends, the Guar Gum FD Rotterdam price in the Netherlands for the current quarter is USD 1705/MT, reflecting an average quarterly decline of 1.48%.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, Guar gum prices in the US market showcased oscillation in the trajectory of the price. The price was valued at the end of Q2 2023, representing an average quarterly decline of 1.20%. Overall, the prices fell significantly but showed signs of relief in the market situation in the last month of Q2 2023. Due to sporadic fluctuations between supply and demand during the month. Market trading fundamentals were impacted by weak demand and high inventories. Retail sales fell due to high inflation. Retailers have also struggled with bloating inventory they ordered to meet surges in demand during the outbreak, despite stagnant demand. Also, the cost of energy declined in recent months, due to the slowdown in the global economy and the decline in the price of oil further supported the lower trajectory of Guar Gum. Later in June, the US market witnessed an increase in Guar Gum prices, primarily driven by the rising demand. Challenges such as higher interest rates, increased living costs, and reduced household savings impede the upturn in the coming months. Subdued foreign demand conditions have been observed across various industries.
Asia
The market price of Guar gum declined significantly in the second quarter of 2023, driven by weak domestic and international demand. The price was valued and acquired at the end of Q2 2023, with an average quarterly decline of 11.87%. 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. Also, the logistics industry in China continued to grow in June 2023, with the sector's performance indicator rising to 51.7%, as per data from the China Federation of Logistics and Purchasing. The e-commerce logistics index surged for the sixth straight month in June, reaching 110.6 points. This was driven by an increase in both rural and overall business volume. Freight transport volume also increased in June, with the index rising to 51.2 points. This was driven by an increase in both domestic and international trade. Warehouse occupancy rates remained high in June, with the index standing at 52.3 points. Overall, the inventory level of the Guar Gum, was at a higher edge as they increased their production rate with a low demand side. The feedstock suppliers were also offering Guar Gum seeds at a cheaper price in the spot market which reduced the cost support for Guar Gum.
Europe
In the second quarter of 2023, the demand for Guar gum collectively decreased, leading to a decline in market prices. The price was valued and acquired at the end of Q2 2023, with an average quarterly decline of 1.17%. Weak demand from the food and beverage industry, slackening demand from the oil and gas sector, and Increased supply were some of the factors that kept the market feeble. Due to reduced imports of raw materials from exporting countries like China and chronically low downstream industry demand, Guar Gum prices in Germany fell in April. Additionally, the cost of shipping goods by sea has decreased due to recent rates between China and Europe returning to pre-pandemic levels and a major reduction in congestion, both of which influence the state of the company. The availability of domestic supplies and a decrease in demand in the local as well as in the international market impacted commodity prices. In other European countries like France, Italy, Spain, and the Netherlands also the Guar gum prices remained depreciated. The supply of guar gum increased due to the expansion of production capacity in India, the world's largest producer of guar gum. This has led to an increase in the supply of guar gum on the global market. However, the demand for guar gum has decreased due to the slowdown in the global economy. Additionally, speculators have been selling guar gum futures contracts in anticipation of lower prices in the future, which has also put downward pressure on prices.
For the Quarter Ending March 2023
North America
Guar Gum prices displayed a fluctuating price pattern, with a modest decline in the first quarter of 2023. Prices dropped at the start of Q1 due to the low demand compared to the demand side's amassed supply. Prices were on the lower side since shale gas usage was steady. Furthermore, declining demand and the widespread use of natural shale gas frequently impact the market value of Guar Gum. Also, the price increased gradually and slightly over the course of the last month of the quarter due to an increase in demand from the natural gas industry. By the end of Q1, the general price trajectory was observed to be on an oscillating pattern. Finally, it was determined that the price of Guar Gum was USD 2095/MT CFR Houston in March.
Asia Pacific
Throughout the first quarter of 2023, the Guar Gum market showed a rising price trend. With the implementation of the zero-covid policy, the Covid-19 cases have stabilized, further increasing demand in China and the food processing sector, leading to an increase in Guar Gum prices throughout the quarter. Because there was little demand for Guar Gum on the spot market and a surplus of supplies coming from growing regions, prices were not under pressure. China's zero-Covid policy included the removal of stringent safeguards like lockdowns and thorough testing. Prices increased as a result of these efforts because the economy had been performing well. In March, close to the end of Q1, prices were noted as USD 2190/MT for CFR Shanghai.
Europe
In the first quarter of 2023, prices in Europe were falling as a result of fundamentals of modest supply and demand. Prices declined, and there were sufficient stockpiles with the dealers at the start of Q1 due to weak demand and supply-side adoption. Lower product prices were observed in the market during the second half of Q4 as a result of low demand and a relaxation of supply brought on by constant inflation. Due to a downturn in demand from the food and beverage industry as well as the oil and gas sector, Guar Gum prices have fallen dramatically in the domestic German market. Despite sufficient supplies in the local market, the product's price kept decreasing. Prices for FD Hamburg for Germany in March were reported to be USD 1980/MT toward the close of Q1.
For the Quarter Ending December 2022
North America
Prices for guar gum showed an upward price trajectory with minor fluctuations in the fourth quarter of 2022. Because of the strong demand as opposed to the supply side's accumulated stock, prices were higher at the beginning of Q4. The use of shale gas expanded, which was why the price rose. Additionally, due to rising demand from the natural gas industry, the price rose gradually and somewhat throughout the first half. The overall price trajectory was seen to be on a declining trend at the conclusion of Q4. Finally, it was determined that the price of guar gum was USD 2285/MT CFR. Houston in December.
Asia Pacific
The guar gum market displayed a negative price tendency throughout the fourth quarter of 2022. The increase in Covid-19 instances has hurt demand in China and the food processing industry, which has resulted in a 13% drop in guar gum prices over the previous month. Guar gum prices were under pressure due to a lack of demand in the spot market and an abundance of supplies from growing areas. China used strict measures like lockdowns and rigorous testing as part of its zero-Covid policy. The economy had been impacted by these actions. In December, close to the end of Q4, prices were noted as USD 2050/MT for CFR Shanghai.
Europe
In the fourth quarter of 2022, prices fell as supply and demand fundamentals remained constant. Prices decreased at the start of Q4 because of poor demand and supply-side adoption. The ease of supplying goods to European countries has further aided the drop in prices on the local market. The beginning point for imports, exports, and exports were the Black Sea region. Lower product prices were observed on the trade market in the second half of Q4 as a result of low demand and supply relaxation brought on by stable inflation. Guar gum is becoming more common, and consumers are becoming more aware of its health and nutritional benefits, which will help the market continue to rise. Despite sufficient quantities being available on the domestic market, the product's price continued to decline. Prices for FD Hamburg for Germany in December were reported to be USD 2150/MT toward the close of Q4.
For the Quarter Ending September 2022
North America
In the third quarter of 2022, Guar Gum prices showed an upward price trajectory with slight fluctuation. Prices were higher at the start of Q3 because of the strong demand as opposed to the supply side's accumulated stock. The development of shale gas use was the cause of the price increase. The market value of Guar Gum is typically driven by rising demand and the widespread usage of shale gas for household and cooking purposes. Additionally, the price increased steadily and somewhat throughout the first half due to rising demand from the natural gas industry. At the end of Q3, the overall price trajectory was observed to be on an upward trend. In conclusion, it was found that Guar Gum cost USD 2450/MT CFR Houston in September.
Asia Pacific
In the third quarter of 2022, the Guar Gum market showed a price trajectory change. With each small change in the market price of raw materials, the price continued to change. Due to the market's abundance of inventory at the beginning of the first half of Q3, prices began to decline. The end-user industries, such as the food industries, lowered their demand as well. Prices rose in the second half of Q3 because of rising demand and a shortage of inventory, which forced dealers to maintain price increases. Prices were noted to be USD 2110/MT for CFR Shanghai in September, near the end of Q3.
Europe
Gaur Gum Prices increased in the third quarter of 2022 and fluctuated avidly with the supply/demand fundamentals. Prices fell at the beginning of Q3 because of weak demand and supply-side take-up. The domestic Gaur Gum price decline has been further helped by the ease with which goods can be supplied to European nations. The Black Sea region served as the starting point for imports, exports, and exports. The second half of Q3 saw higher product prices on the trade market because of rising demand, supply restrictions brought on by the Russia-Ukraine war, inflation, and a labor shortage caused by the war's effects. Along with the spike in freight costs brought on by the Russia-Ukraine war, trade prices on the European Market also increased. The growing prevalence of guar gum and rising consumer knowledge of its nutritional and health benefits would further boost the growth market. Towards the end of Q3, the prices were recorded to be USD 2310/MT for FD Hamburg for Germany in September.
For the Quarter Ending June 2022
North America
In the second quarter of 2022, Guar gum prices showed an upward price trajectory with slight fluctuation. At the beginning of Q2, the prices were higher due to the strong demand than the supply side with piled-up stock. The price increase is due to the expansion in shale gas utilization. Increasing demand and the wide use of shale gas for domestic and cooking designs generally drive Guar Gum's market worth. Moreover, in the first half, there was a continuous increase in price with slight variation, as there is increasing demand from the natural gas industries. Toward the end of Q1, the overall price trajectory was recorded to be on the upper side. Conclusively, the price of Guar Gum was observed to be at USD 2856/MT CFR New Orleans (USA).
Asia Pacific
In the second quarter of 2022, the market for Guar gum showcased an upward price trajectory. One of the largest producers and exporters of guar gum in India. The price keeps on fluctuating with the slight variation in the cost price of raw materials. At the onset of the first half of Q2, the prices showed steady market sentiments with the demand side in a dynamic state with the supply side. Later in the second half, the costs of Guar Gum showed mixed sentiments with the resolve of the pandemic. The resurgence of Covid on the global level set down pressure on the Guar Gum prices owing to increased demand with sufficient supply and higher inventories. Later, towards the end of the second half, the end-user industries experienced higher demand with lesser supplies leading to price inclination. Towards the end of Q2, the prices were observed to be USD 147400/ton Ex-Jodhpur (India).
Europe
In the second quarter of 2022, the prices were increasingly avidly with the supply/demand fundamentals. At the beginning of Q2, the prices were higher due to strong demand and high offtakes than the supply side. However, with the beginning of the last part, the resurgence of the pandemic added to the expansion in Gaur gum costs in the homegrown and worldwide business sectors. Increased demand with supply constraints due to Russia-Ukraine war inflation and shortage of labor due to the post-pandemic effect led to higher product prices in the trade market. Also, with the increase in freight charges due to covid, the trading prices increased in European Market. The growing prevalence of guar gum and rising consumer knowledge of its nutritional and health benefits would further boost the growth market. Towards the end of Q2, the prices were recorded to be USD 2656/ton FD Rotterdam (Netherlands).
For the Quarter Ending March 2022
North America
In the first quarter of 2022, Guar gum prices showed an upward price trajectory with slight fluctuation. At the beginning of Q1, the prices were on the lower end due to the weak demand than the supply side with stocked up inventories. With surging awareness about Guar gum's health benefits, the demand from the downstream industries increased, leading to a surge in demand for Guar gum in domestic and overseas markets. Later in the second half of first quarter, as the pandemic resurfaced, a fall in production, higher consumption, and lower carry forward stock was witness when compared with the last quarter. Toward the end of Q1, the overall price trajectory was recorded to be on the upper side.
Asia Pacific
In the first quarter of 2022, the market for Guar gum showcased a fluctuating price trajectory. India is one of the major producers and exporters of Guar Gum. At the onset of the first half of Q1, the prices showed stable market sentiments with the supply side in equilibrium with the demand side. Later in the second half, prices of Guar Gum showed mixed sentiments with the onset of the pandemic. The resurgence of Covid on the global level set down pressure on the Guar Gum prices owing to increased demand with sufficient supply and higher inventories. Later, towards the end of the second half, the end-user industries experienced higher demand with lesser supplies leading to price inclination. Towards the end of Q1, the prices were observed to be USD 1505/ton Ex-Bikaner (India).
Europe
In the first quarter of 2022, the prices were stable with moderately operating supply/demand fundamentals. At the beginning of Q1, the prices were lower due to weaker demand than the supply side. But with the onset of the second half, the resurgence of the pandemic contributed to the increase in Gaur gum prices in the domestic and global markets. Increased demand with supply constraints due to labor shortage, disruption in supply chains, and feeble trade market led to higher prices. Also, with the increase in freight charges due to covid, the trading prices increased in European Market. The increasing consumer awareness about the health and nutritional benefit of Guar gum and its growing prevalence will further escalate the growth market. Towards the end of Q1, the prices were recorded to be USD 2235/ton CFR Hamburg (Germany).
