Mayfair Commodities_KK

 

Overview 

The prices of Guar Gum rallied by 12-15% during the previous week. Demand continues to increase and the availability of the raw material has become increasingly limited and expensive.

 

Supplygraph-1587636_640

There is limited availability of Guar splits on the spot market. Tighter supplies are forcing the manufacturers of Guar Gum to pay higher prices in order to secure the raw material. This increase is now evident in the final prices quoted for Guar Gum. 

 

fire-1980292_1280Demand

Manufacturers continue to report increased demand in the Guar market. The amount of operational oil and gas rigs in U.S.A and Russia continue to grow, which has had a knock-on effect on Guar prices. 

Demand from Europe has predominantly come from the food industry. Although the prices are pushing higher, the food industry is providing steady demand because Guar still remains one of the highest quality and cheapest hydrocolloid. 

Guar exports from India have surged. In September exports were approximately 20,000 tons and increased to 33,000 tons in January. The current indicators have fueled a shared sentiment resulting in more forward bookings. Allowing customers to hedge their positions to insulate against fluctuations and uncertainty in the market.

 

Outlook

The popularity of forward bookings is possibly an indication that the market will remain on this trajectory. 

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