For the Quarter Ending June 2025
North America
• The Xanthan Gum Spot Price in North America held moderately firm throughout Q2. This firmness of market was supported by stable demand from both food-grade and oilfield sectors.
• The Xanthan Gum Price Forecast for Q3 2025 indicated a cautiously bullish outlook, backed by seasonal increases in food additive consumption and a gradual uptick in domestic drilling projects.
• Why did the price change in July 2025? Xanthan Gum prices edged higher due to lean distributor inventories and resumption of energy-sector procurement, amid rising container costs.
• The Xanthan Gum Production Cost Trend remained stable during Q2, as local blending units experienced no major input or operational constraints.
• Buyers predominantly followed just-in-time procurement practices, keeping inventories minimal to hedge against macroeconomic and trade uncertainties.
• The Xanthan Gum Demand Outlook remained mixed, with consistent offtake in food and beverage applications, while demand in industrial and oilfield sectors was still recovering.
• Logistics performance across major U.S. ports stayed efficient, ensuring smooth product flow and minimizing shipment delays.
• Bulk procurement was largely avoided as buyers focused on contracted volumes and pricing stability due to compressed operating margins.
• Asian exporters continued to supply consistent volumes into the U.S. market, aided by flexible deal terms and mid-term delivery contracts despite ongoing tariff concerns.
Asia Pacific
• The Xanthan Gum Spot Price for oil drilling grade declined sharply by 8.03% in June 2025 and settled at USD 2,175/MT FOB Qingdao due to stagnant offshore drilling activity.
• The Xanthan Gum Price Forecast for Q3 remained under bearish pressure unless renewed international tenders or export stimulus measures materialize.
• Why did the price change in July 2025? Prices stayed flat in July as Chinese producers have maintained floor pricing to protect margins despite weak overseas offtake.
• The Xanthan Gum Production Cost Trend remained unchanged through Q2, with steady corn-based feedstock availability and continuous production across key provinces.
• Inventories accumulated through Q2 as export volumes slowed, even though domestic plants continued operating at full capacity.
• The Xanthan Gum Demand Outlook was lacklustre, particularly from the Middle East and Southeast Asia, with no major new contracts or tenders awarded.
• Port operations at Qingdao faced no disruption in Q2, supporting uninterrupted but low-volume international shipments.
• A brief uptick of +0.21% in May 2025 failed to shift overall Q2 sentiment, which remained decisively bearish.
• Suppliers launched short-term price promotions to boost sales into non-U.S. regions, attempting to offset volume losses caused by tariff-sensitive markets.
Europe
• The Xanthan Gum Spot Price in Europe remained stable and was driven by steady demand across food, cosmetic and personal care industries.
• The Xanthan Gum Price Forecast for Q3 hinted at mild upside potential, particularly if bakery and dairy ingredient consumption improves and oilfield activity recovers in Northern Europe.
• Why did the price change in July 2025? A modest price increase in July was supported by proactive restocking from food processors and early signs of renewed technical-grade demand.
• The Xanthan Gum Production Cost Trend for Chinese imports remained steady through Q2, with no significant fluctuations in CIF values or supply chain disruptions.
• European distributors maintained lean inventory cycles through Q2 to mitigate overstocking risks ahead of a variable Q3 consumption pattern.
• The Xanthan Gum Demand Outlook remained healthy in food-related applications such as sauces, bakery, and meat processing, while demand for industrial grades remained subdued but stable.
• Port logistics at Hamburg, Rotterdam, and Antwerp facilitated uninterrupted product movement throughout Q2 with no weather-related or operational delays.
• Most buyers opted for fixed-rate contracts to manage exposure to future freight or commodity volatility.
• Forward orders into Q3 were confirmed, though the overall European sentiment remained measured, with traders showing no signs of speculative bulk procurement.
For the Quarter Ending March 2025
Asia Pacific: - US$ 2360 /MT, -5.9% Down
India: - INR 240000 /MT, -4.2% Down
Asia-Pacific (APAC)
• The Xanthan Gum Price Index in the Asia-Pacific region witnessed a downward trend in April 2025, after the first quarter recorded an average price decline of 1.44% due to moderate demand from downstream sectors.
• Why did the spot prices change in April 2025?: The Xanthan Gum Spot Price eased down marginally, primarily influenced by softer demand from the pharmaceutical, nutraceutical, and personal care sectors. Spot Prices of Xanthan Gum settled around USD 2360/MT during April 2025 in China.
• Seasonal factors and the post-winter slowdown led to temporary production moderation and lower order volumes.
• Suppliers practiced careful inventory control, anticipating a gradual rebound in Q2 demand cycles.
• Holiday-related production pauses in China and other producing countries briefly affected output but did not cause major supply disruptions.
• Buyers opted for conservative procurement strategies, focusing on inventory sufficiency rather than bulk restocking.
• The Xanthan Gum Production Cost Trend remained manageable as raw material prices and operating conditions stayed stable.
• The Xanthan Gum Demand Outlook remains modest but is expected to improve with the onset of warmer months and heightened industrial activity.
• The Xanthan Gum Price Forecast indicates potential firming if demand from personal care and food sectors strengthens in Q2.
North America
• The Xanthan Gum Price Index in North America showed a falling price trend in April 2025, reflecting marginal softening in prices due to cautious seasonal buying during the winter-to-spring transition.
• The Xanthan Gum Spot Price remained largely stable with minor downward adjustments, driven by strategic stock management and steady, albeit cautious, demand from pharmaceuticals, nutraceuticals, and food sectors.
• Procurement activity slowed slightly as buyers minimized surplus inventory, anticipating a seasonally lower consumption phase.
• Although minor logistical delays occurred due to weather-related factors, the overall supply chain functioned efficiently.
• Discussions over tariffs in early Q1 contributed to buyer-supplier caution, influencing pricing offers.
• Inventory levels remained balanced, with suppliers aligning prices to global benchmarks and avoiding aggressive pricing shifts.
• The Xanthan Gum Production Cost Trend remained stable, allowing producers to maintain profitability amid soft demand.
• The Xanthan Gum Demand Outlook for Q2 2025 remains stable, with a potential uptick as warmer months boost food and beverage applications.
• The Xanthan Gum Price Forecast suggests mild volatility depending on seasonal demand recovery and global trade dynamics.
Europe
• The Xanthan Gum Price Index in Europe experienced a downward price momentum entering in April 2025, following prices remaining steady to slightly subdued during Q1.
• The Xanthan Gum Spot Price eased marginally in specific markets, consistent with global trends and cautious downstream demand.
• Demand remained flat across pharmaceuticals, personal care, and food & beverage sectors, with no major surges in consumption.
• The seasonal transition influenced procurement patterns, as buyers aimed to balance stock levels ahead of expected Q2 production shifts.
• Logistics remained smooth, supporting stable supply availability throughout key European markets.
• Suppliers mirrored global price trends and adjusted offers slightly to align with cautious regional demand.
• The Xanthan Gum Production Cost Trend was steady, with no major fluctuations in input costs during Q1.
• The Xanthan Gum Demand Outlook for Europe is stable, with modest improvement likely as seasonal product applications increase.
• The Xanthan Gum Price Forecast signals continued stability, barring unexpected supply disruptions or sharp demand shifts.
For the Quarter Ending December 2024
North America
During Q4 2024, the Xanthan Gum 80 mesh market in North America experienced consistent downward price trends. October began with initial price declines as supply outpaced demand from oil drilling operations. Buyers reduced their procurement activities, adopting a wait-and-watch approach in anticipation of further price drops. The oil and gas sector's moderated requirements, combined with ample spot availability, created downward pressure on prices.
November continued the bearish trend as market fundamentals remained soft. Supply chains maintained healthy inventory levels while demand from drilling operators remained subdued. Buyers leveraged their position to negotiate increasingly favorable prices, leading to further price erosion across the region. Multiple distributors reported oversupplied positions, enabling them to secure better deals. The market witnessed cautious trading activity as end-users maintained minimal buying patterns.
December saw further price deterioration as year-end activities remained sluggish. Domestic suppliers struggled to maintain price levels amid weak demand from drilling operations. The market's downward momentum was reinforced by destocking activities and decreased consumption patterns through quarter-end. Several key manufacturers reported surplus inventory amid tepid demand from the oil and gas sector. The combination of year-end inventory adjustments and competitive market conditions contributed to the continued bearish sentiment.
APAC
In Q4 2024, Xanthan Gum 80 mesh prices in APAC markets showed persistent downward movement. October registered price decreases as exporters reduced their offers amid sluggish domestic and international demand. Producers faced pressure to move volumes despite lower production rates, while weak inquiries from oil field operators maintained the bearish sentiment. The market witnessed slow trading activity as buyers continued to postpone purchases.
November saw further price deterioration as market fundamentals weakened. Manufacturers continued to adjust their pricing strategies downward amid poor demand and abundant supply availability. Regional trading activity remained minimal as buyers maintained their cautious stance, leading to additional price concessions from suppliers. Several facilities reported high inventory positions, while export inquiries remained weak. The competitive market environment forced producers to offer increasingly attractive terms.
December continued the downward trend as manufacturers struggled to maintain price levels. Several facilities reduced production rates amid persistent weak demand. Export prices remained under pressure, impacted by low inquiry levels from international markets. The domestic market showed no signs of improvement as local drilling operators maintained low procurement volumes. Major producers reported reduced capacity utilization rates while managing high inventory levels.
Europe
In Q4 2024, Xanthan Gum 80 mesh prices in Germany and broader European markets tracked the global downward trend. October began with price declines as buyers received lower offers from suppliers. European producers reduced prices amid weak demand from the oil drilling sector. The market witnessed minimal trading as distributors postponed purchases, anticipating further price decreases. Major manufacturers reported weak order books.
November saw continued price erosion as market conditions remained unfavorable. Buyers maintained their advantage amid ample supply availability, securing increasingly lower prices. The market witnessed reduced trading as distributors managed high inventories. Several buyers reported sufficient stock positions, allowing them to push for better prices. Import volumes remained adequate, contributing to the persistent bearish market sentiment.
December's market dynamics maintained their downward trajectory as European distributors leveraged the oversupplied market. Weak regional demand and ample availability continued to pressure prices. Consumption patterns remained subdued across drilling applications, with suppliers forced to offer additional discounts through quarter-end. Year-end activities provided no support to the market as key buyers maintained minimal procurement volumes. Manufacturers reported reduced operating rates while managing high inventory positions despite the holiday season.
For the Quarter Ending September 2024
North America
The Xanthan Gum market in North America demonstrated mixed price trends during Q3 2024, with the United States serving as a key market indicator. The market witnessed price appreciation until August, followed by a decline in September, primarily influenced by China's market dynamics, the dominant global producer. Prices in the USA fluctuated as they closely followed Chinese market trends, reflecting the interconnected nature of global supply chains.
Enhanced procurement patterns from domestic oil drilling industries emerged as principal market drivers, while logistical challenges continued to create supply-side pressures during the quarter. The market showed remarkable resilience despite facing operational hurdles, including maritime congestion, elevated shipping costs, and persistent distribution network disruptions. The situation was particularly influenced by price movements in China's market, where manufacturing constraints and export dynamics generated ripple effects across the American consumer sector.
The initial price strengthening until August, followed by a September decline, aligned with broader regional patterns. The interplay between amplified regional demand, global supply dynamics, and logistical challenges shaped a complex yet fundamentally stable pricing environment in the North American market.
APAC
The third quarter of 2024 witnessed a fluctuating price trend for Xanthan Gum in the APAC region. Initially, prices in China showed an upward movement, reaching $3020/MT until August, supported by robust international demand. However, the market subsequently experienced a downturn, influenced by various market dynamics and operational factors.
The price trajectory in the latter half was majorly impacted by high Xanthan Gum inventory with end-users and lowered demand especially from international markets including the US, Europe and India. China, being the primary price indicator, demonstrated notable price variations during the quarter influenced by intensified market competition, evolving demand patterns, and enhanced global supply availability, fostering a more competitive pricing environment. Seasonal fluctuations and regional market dynamics further contributed to the price adjustments throughout the quarter. The quarter registered an 8% decline compared to the previous quarter, with a modest 1% decrease between the first and second half. Prices ultimately settled at USD 2950/MT for Xanthan Gum 80 Mesh (Oil Drilling) FOB Qingdao in China during September, reflecting the market's downward movement. The softening trend was primarily attributed to declining export demand, particularly from international buyers as they maintained sufficient inventory levels to meet their regional requirements, indicating a well-supplied global market condition.
Europe
The Xanthan Gum market in Germany showcased a mixed pricing pattern during Q3 2024, serving as a benchmark for European market trends. The market experienced price appreciation until August, followed by a downturn in September, primarily influenced by pricing dynamics in China, the world's leading producer. German market prices closely mirrored Chinese market movements, highlighting the global market's interconnected nature.
Steady demand from domestic oil drilling industries for industrial applications emerged as key market drivers, while logistical challenges impacted supply-side dynamics. The market demonstrated significant adaptability despite facing operational hurdles, including shipping constraints, elevated freight costs, and ongoing supply chain disruptions. The pricing trajectory was particularly affected by developments in China's market, where production dynamics and export patterns created substantial impacts across German industrial sectors.
The initial price strengthening until August due to high prices in China, followed by a September decline, aligned with broader European market trends. The balance between consistent regional demand, global supply fundamentals, and logistical challenges fostered a complex yet stable pricing environment in the German market, maintaining its position as Europe's primary pricing indicator.
Frequently Asked Questions (FAQs)
1. What is Xanthan Gum and what industries commonly use it?
Xanthan Gum is a high-molecular-weight polysaccharide used as a thickening, stabilizing, and suspending agent in various applications. It is widely utilized in the food and beverage industry (especially in sauces, dressings, and dairy), oilfield drilling (as a rheology modifier), pharmaceuticals (as a controlled-release agent), and cosmetics (for texture enhancement).
2. What factors influence the global Xanthan Gum Spot Price?
Xanthan Gum Spot Prices are influenced by demand from downstream sectors (such as food processing and oil drilling), fluctuations in raw material costs (especially corn or glucose feedstocks), production capacity utilization rates, export orders, and regional inventory strategies. Geopolitical factors and trade tariffs also impact spot price dynamics across regions.
3. How does the Xanthan Gum Price Forecast behave seasonally?
Seasonally, Xanthan Gum prices may rise during food processing peaks (e.g., summer and year-end holiday seasons) or when drilling activities intensify. However, prices can stabilize or weaken during periods of low industrial activity or when inventories are high. Price forecasts also respond to macroeconomic confidence and procurement cycles.
4. What causes shifts in Xanthan Gum Production Cost Trends?
Xanthan Gum production costs depend heavily on raw material availability (particularly glucose or corn derivatives), energy prices, and plant utilization rates. In regions like China, stable feedstock and full-capacity operations tend to keep costs consistent, while any volatility in agricultural input costs or utilities can impact the overall trend.
5. What is the current global Xanthan Gum Demand Outlook?
The global demand outlook for Xanthan Gum remains moderately optimistic. Food and beverage sectors show consistent consumption, while industrial and oilfield demand is cyclical and more sensitive to economic recovery and infrastructure spending. Regional disparities in demand trends may affect market sentiment and trade flows.
