The market has remained stable since our previous report and prices are range bound.
The arrival of Guar Seeds declined in key markets over the last two weeks, which resulted in some minor price fluctuations. These variations in supply could cause concern to some traders and consumers, however, this is the status quo in the Guar market. The Gujarat state government has also predicted a 7% increase in Guar seed production for 2016.
Reports we have received from the traders in the Indian markets and manufacturers have all said that demand internationally in slow. However compared to December and early January, Mayfair commodities have experienced increased enquiries and demand from our customers requiring smaller quantities of spot material and full container loads. The current price advantage Guar Gum offers is one of the most crucial contributing factors to this increase in enquiries.
Our personal experience could point towards increased demand from Europe, however, this is always difficult to predict. If this is a sign, then a price increase would be inevitable in the near future. The coming months will reveal more about the direction the market will take and as these developments take place we will be sure to keep you informed.