For the Quarter Ending September 2025
North America
• In USA, the Guar Gum Price Index rose by 1.75% quarter-over-quarter, driven by supply constraints.
• The average Guar Gum price for the quarter was approximately USD 1546.67/MT, reflecting CIF import costs.
• Guar Gum Spot Price reflected Indian crop shortfalls and elevated freight, supporting importers’ cost pass-through.
• Guar Gum Price Forecast projects volatility into Q4, influenced by inventory rebuilding and seasonal procurement.
• Guar Gum Production Cost Trend eased as favorable monsoon improved yields, reducing raw material pressures.
• Guar Gum Demand Outlook remains robust driven by oilfield services and food sectors, sustaining procurement.
• Guar Gum Price Index reacted to distributor inventories and export demand, prompting buyer stock adjustments.
• Major producers increasing output and normalized shipping reduced lead times, supporting trade flows and corrections.
Why did the price of Guar Gum change in September 2025 in North America?
• Persistent supply constraints from India reduced availability, pressuring U.S. CIF costs and encouraging importer stockpiling.
• Elevated freight rates and port congestion increased landed costs, transmitting inflationary pressure across value chain.
• Seasonal downstream buying and oilfield demand sustained offtake, counterbalancing some supply-side easing in September 2025.
APAC
• In China, Guar Gum Price Index fell by 0.192% quarter-over-quarter, driven by Indian export pressures.
• The average Guar Gum price for the quarter was approximately USD 1385.67/MT, reflecting freight costs.
• Guar Gum Spot Price eased as importers destocked, while Indian supply, freight constraints impacted availability.
• Guar Gum Price Forecast suggests modest volatility, with correction and seasonal uplift into year-end restocking.
• Guar Gum Production Cost Trend stayed high as feedstock and freight costs elevated import expenses.
• Guar Gum Demand Outlook remains robust from food and pharmaceutical sectors, supporting consumption despite volatility.
• Guar Gum Price Index reflected port congestion and monsoon disruptions, amplifying supply tightness for importers.
• Scheduled maintenance in major Indian facilities reduced export volumes temporarily, pressuring Guar Gum price structures.
Why did the price of Guar Gum change in September 2025 in APAC?
• Strong Indian export demand reduced available spot shipments, tightening China imports and nudging prices upward.
• Port congestion and monsoon-related logistics delays increased lead times and freight costs for guar shipments.
• Buyers' destocking and higher domestic inventories combined with occasional maintenance eased immediate downward price pressures.
Europe
• In Spain, the Guar Gum Price Index rose by 2.71% quarter-over-quarter, driven by supply tightness.
• The average Guar Gum price for the quarter was USD 1906.67/MT, reflecting landed import costs.
• Guar Gum Spot Price tightened while Guar Gum Production Cost Trend rose from higher logistics.
• Guar Gum Demand Outlook remains firm, driven by food processing and pharmaceutical sector replenishment demand.
• The Guar Gum Price Forecast suggests modest upside as buyers replenish inventories ahead of harvest.
• Spanish re-export demand and port congestion depleted stocks, providing support to Guar Gum Spot Price.
• Constraints in Indian processing and monsoon variability produced mixed signals for Guar Gum Price Index.
• Freight and container shortages elevated landed costs, pressuring margins while supporting Guar Gum Price Index.
Why did the price of Guar Gum change in September 2025 in Europe?
• Monsoon variability in India constrained exports, tightening supply and increasing landed costs for Spanish importers.
• Elevated freight rates and container shortages increased logistics costs, reducing competitiveness and pressuring domestic pricing.
• Robust domestic consumption and re-export activity depleted port stocks, supporting movement in the Price Index.
For the Quarter Ending June 2025
North America
• The Q2 Guar Gum Spot Price exhibited a fluctuating but overall stable-to-slightly-downward trajectory in North America, with an average quarter-over-quarter price movement of –1.93%. Notably, June 2025 saw a reversal with prices rising 1.32% month-on-month after two months of decline, driven by tightening global supplies.
• Early Q2 witnessed surplus domestic inventories and weak demand, aggravated by ample exports from India and conservative downstream procurement, contributing to negative price pressure in April and May.
• April’s demand outlook was soft, especially in oil & gas and processed foods, with buyers largely drawing from existing stocks rather than engaging in aggressive restocking, further stalling market momentum.
• The Guar Gum Production Cost Trend remained favorable for importers due to low transportation costs and global price competition, particularly after India's robust harvest and stable export pricing.
• In May, excessive inventory buildup from previous months, coupled with restrained offtake and a sub-50 manufacturing PMI, led to aggressive discounting, emphasizing short-term price weakness across the supply chain.
• Food and beverage, along with personal care manufacturing, saw sluggish demand due to cautious downstream inventory management, conservative consumer spending, and muted discretionary purchases.
• By June, Guar Gum Spot Prices rebounded sharply, as weather-related supply shortages in India (down 12%) and global logistical bottlenecks lengthened delivery times and drove importers to accept higher costs.
• The oilfield sector’s renewed activity in June, spurred by market improvements, helped underpin Guar Gum Demand Outlook for the remainder of the quarter, alongside continued use in food and pharma.
• Currency dynamics, including a weaker US dollar, compounded cost inflation for US buyers, eroding the earlier benefits of international price competition.
• The Guar Gum Price Forecast for North America in H2 2025 is upward-biased due to persistent global supply tightness, firm demand in oil & gas, and ongoing vulnerability to Indian export disruptions.
APAC
• The Q2 trajectory for Guar Gum Spot Price in APAC (notably India) was downward in April and May (quarterly average –2.13%), with a modest uptick in June (+0.72%), as export-driven demand met tightening raw material availability.
• Early quarter market conditions saw low capacity utilization as manufacturers faced an inventory glut and weak offtake from pharmaceuticals and personal care, with limited signs of recovery.
• Persistent soft demand, amplified by a dip in India's manufacturing PMI and subdued retail activity, reinforced month-on-month price weakness through May.
• In April and May, the Guar Gum Production Cost Trend was stable for Indian producers, benefiting from low domestic input costs even as global feedstock price volatility persisted.
• Exports declined mid-quarter, as overseas buyers in the US and Europe hesitated amid ample inventory and softening international prices, pressuring local spot rates.
• The oil & gas sector’s fracking-related demand (both regional and export) remained lackluster in Q2, with end-users only restocking for short-term needs, contributing to persistent oversupply.
• By June, weather-induced production constraints (fewer planted acres due to excess rainfall) combined with dramatic recovery in export orders led to stable but gently rising prices, reflecting firmer fundamentals.
• Wholesaler speculation and stockpiling escalated in late Q2, amplifying Guar Gum Spot Price volatility amid expectations of further supply tightening and strong industrial demand.
• The Guar Gum Demand Outlook in APAC pivoted upward by June, led by robust off-take in oil & gas, food, and pharma both domestically and for export, despite ongoing logistical and cost headwinds.
• Guar Gum Price Forecast for Q3 2025 remains bullish for APAC, especially India, on continued strong global demand, limited cultivation recovery, and active export channels.
Europe
• Q2 Guar Gum Spot Price in Europe (Netherlands) reflected a dip in April (–1.12%), a strong recovery in May (+4.77%), and sustained firmness through June (+0.87%), with average quarterly price movement of +1.50%, underpinned by logistics and import dynamics.
• April’s price weakness was rooted in surplus inventories due to diverted consignments from US-bound shipments and proactive pre-holiday stockpiling by buyers.
• The Guar Gum Production Cost Trend benefited from favorable logistics (competitive freight rates, ample vessel space) and Euro appreciation, lowering spot import costs for buyers in early Q2.
• Despite ample supply in April, actual consumption was moderate, with end-users delaying fresh procurement as prices softened and inventories remained elevated.
• In May, shipping disruptions—industrial actions and restricted barge traffic on the Rhine—plus the redirection of Asian freight to US routes led to acute supply chain bottlenecks, sharply raising landed costs and squeezing inventories.
• Buyers accelerated booking ahead of anticipated June rate hikes, creating scarcity premiums and supply uncertainty for guar gum and other gum products.
• Downstream industry (notably food processing and cosmetics) began rebuilding stocks by May-end as manufacturers anticipated production growth, lending price support.
• In June, firm Indian FOB pricing and land-side logistics stability could not offset persistent tightness from strong consumption in oil & gas, food, and pharma, sustaining upward price momentum.
• Improving manufacturing sentiment (NEVI PMI rising to 51.2) and increased export orders for European-processed guar gum sustained strong Guar Gum Demand Outlook through June.
• The Guar Gum Price Forecast for Europe points to continued firmness in Q3 2025, as robust industrial consumption and tight global supply outpace any marginal improvement in market availability.
For the Quarter Ending March 2025
North America
In Q1 2025, Guar Gum prices in the U.S. market remained on a consistent downward trend, influenced by weak demand and ample global supply. The quarter began with a 3% price drop in January, driven by sluggish demand from the pharmaceutical and food sectors, along with high inventory levels and continued global oversupply. Port congestion in New York and New Jersey further discouraged aggressive procurement.
In February, prices continued to fall as demand from the oil and gas sector declined due to reduced fracking activity. At the same time, a strong guar bean harvest in India led to lower export prices, benefiting U.S. importers. Falling transpacific freight rates and stable production costs intensified competition, while demand from the food sector offered only modest support.
March followed a similar pattern, with prices pressured by aggressive export competition, lower shipping costs, and a subdued demand environment. The oil and gas industry’s cautious capital approach further limited consumption, while the food sector maintained a steady yet non-urgent demand. Overall, Q1 2025 was marked by bearish market sentiment, improved import affordability, and reduced procurement urgency. Unless industrial demand recovers, particularly from shale operations, Guar Gum prices in the U.S. may remain soft heading into Q2.
Asia Pacific
In Q1 2025, the price trend of Guar Gum in China exhibited notable volatility, marked by a fluctuating interplay between supply conditions, seasonal disruptions, and demand-side challenges. In January, prices remained under pressure due to subdued downstream demand, ample inventories, and cautious buyer sentiment. The weak spot market, combined with uncertainty around U.S. tariffs and prolonged deflationary conditions in China, prompted aggressive destocking, eroding overall market confidence.
However, February brought a temporary price rebound. The Lunar New Year holiday led to reduced factory operations and constrained domestic supply, while post-holiday demand surged across food, pharmaceutical, and beverage sectors. With lean inventories and limited immediate supply, manufacturers increased their reliance on imports from India, where prices were firming. This supply-demand imbalance contributed to upward pressure on prices. Nonetheless, this momentum was short-lived. In March, prices declined again, driven by a global oversupply due to India’s bumper guar harvest and aggressive price cuts by Indian exporters.
Improved shipping logistics and a stronger Chinese Yuan further reduced import costs, while pre-holiday inventories continued to satisfy market needs. Additionally, weakened industrial activity—particularly in the oil and gas sector—and ongoing deflation in China suppressed both domestic and global demand. As a result, the overall trend for Q1 2025 was bearish, despite a brief rally in February. Market participants are advised to adopt agile procurement and inventory strategies amid continued uncertainty.
Europe
In Q1 2025, the Guar Gum market in the Netherlands experienced a dynamic pricing trajectory, beginning with a modest increase in January followed by a consistent decline through February and March. January witnessed a measured rise in prices, supported by robust procurement activity across key sectors such as pharmaceuticals, food, cosmetics, and industrial applications. Buyers actively secured inventories for first-quarter production needs, while stable supply and increased export prices from India allowed sellers to adjust prices upward.
Elevated input costs and strategic purchasing contributed to a firm pricing environment. However, this trend shifted in February as strong supply from India—driven by a healthy guar bean harvest and lower raw material costs—flooded the market. The Netherlands, acting as a major re-export hub under FD incoterms, redistributed competitively priced Indian Guar Gum across Europe, placing downward pressure on prices. Improved logistics and declining freight costs further supported this decline.
By March, prices continued to fall due to persistent oversupply, high inventory levels, and cautious buyer sentiment. With forward demand remaining soft, downstream sectors delayed new orders and relied on existing stocks, encouraging suppliers to reduce prices for stock liquidation. The cancellation of peak season surcharges, favorable currency movement, and easing port congestion added to the bearish sentiment. Overall, the quarter concluded with a net decline in Guar Gum prices despite the initial upward momentum observed in January.
For the Quarter Ending December 2024
North America
The fourth quarter of 2024 saw the U.S. Guar gum market experience a sustained price increase due to several key factors. Elevated demand from industries like food and beverage, coupled with rising shipping costs and supply chain disruptions, pushed prices higher. Limited domestic production, extended delivery times, and port congestion caused by a strike exacerbated the situation.
Strategic stockpiling and increasing raw material costs also contributed to price hikes. The market's reliance on imports from Asia further amplified procurement costs, with fluctuations in the dollar-yuan exchange rate intensifying the price pressure. Export demand remained strong, adding to the upward trend. Despite stabilization in port operations post-strike, logistical delays and increased freight rates continued to strain the supply chain.
The overall market showed a self-reinforcing cycle of price escalation, driven by supply chain vulnerabilities, high demand, and escalating costs. With limited domestic production and ongoing import dependency, the market faced an ongoing structural shift, suggesting prices would remain elevated through the quarter.
Asia Pacific
The Guar Gum market in India during Q4 of 2024 exhibited a robust upward trend, driven by a combination of constrained supply and rising demand. Throughout October and November, the market experienced notable price surges due to a significant supply-demand imbalance, worsened by limited production capacity, reduced imports, and crop damage. Demand remained strong, driven by industrial consumption and pre-winter stocking, with significant contributions from the pharmaceutical sector.
Despite the seasonal price rise and the depreciation of the Indian Rupee against the US Dollar, the market maintained a supplier-driven momentum. Supply challenges persisted, with rising production and import costs, especially from China. By December, the market saw a corrective phase, characterized by strategic inventory management rather than fundamental weakness.
Export inquiries softened, and processing units in Rajasthan faced slower demand, yet pharmaceutical demand acted as a stabilizing force. While the market faced temporary export headwinds and price pressures, these were seen as transitional, with underlying stability expected to persist. Overall, the Q4 trend reflects strength, with price corrections considered a tactical adjustment rather than a sign of market decline.
Europe
The overall trend in Spain's Guar Gum market during Q4 of 2024 has been a combination of steady price increases followed by significant declines, driven by fluctuating demand and supply disruptions. Early in the quarter, prices rose due to a mixture of global economic pressures, supply chain issues, and limited availability from key producers, particularly India.
These factors created market imbalances, with Spanish buyers employing varied purchasing strategies, further boosting market activity. Additionally, higher import costs and restricted Guar seed supply exacerbated production challenges, leading to sustained price growth. However, by late December, prices experienced a sharp decline, driven by weak demand and surplus supply, especially due to pre-holiday stockpiling and lower international inquiries.
The hydraulic fracturing industry's reduced demand and oversupply conditions further pressured prices. Despite efforts by suppliers to manage surplus inventory, a bearish sentiment dominated the market, suggesting that unless supply-demand imbalances are addressed, downward pressure on prices will likely continue. Overall, Q4 saw a volatile market characterized by both price increases and declines, underscoring the importance of supply chain management.
