The first round of monsoon rains have fulfilled the requirements of almost 80% of the Guar growing farms without irrigation systems. This includes western parts of India, Punjab and Haryana.
Currently the supply of Guar seeds in the market is limited, however as long as the second round of rains arrives, the supply of Guar in the market should be sufficient to meet demand for the rest of the year.
If the second round of rains is insufficient, the prices for Guar Gum will increase slightly above the current levels.
Demand from the oil drilling and fracturing industry is very low, which is a result of the current oil prices. The most recent reports suggest that the demand from the shale gas industry should increase from the beginning of next year; as the spot material in Huston would have been exhausted by then. However the price of oil and the demand from the shale gas industry are inextricably linked and until the price of oil increases we do not foresee the demand returning back to the levels experienced in 2012-2013. This is also the reason for the supressed demand from China, as the customers from the region, who used to be noodle manufacturers, have now been replaced by shale gas and oil companies.
The second round of rains should arrive before the 15th August 2015; if this does come to fruition the prices are expected to reduce. However 80% of the non-irrigated farms have already received sufficient rainfall therefore prices from the current levels should not decline much further.
Until then our stocks are listed below, If you have any requirements now or in the future please get in touch, we will be happy to help.