Market Report
The Guar Raw Material price is stable at moderate level since last 3-4 months and prices are fluctuating up and down with very narrow range. Mixed sentiments recorded in guar markets as market couldn’t find adequate sign to decide the prices either side.
Enclosed please find Guar Raw Material price fluctuation chart for last one year (from Month April 2020 to March 2021), for your ready reference.
New production of Guar crop will now come after 06-07 months, until new production will not be in the market te price movements in the market will depend on the export of guar. However, the figures of total export are increasing so far. According to information received from market analysts, guar exports (in Quantity) have increased in December 2020 & January 2021 comparing to the exports in the month of September-October-November 2020.
Guar Gum demand and export (for both Guar Gum Powder and Guar Meal) is increasing continuously.
Crude Oil V/s Guar Gum
Prices of crude oil are strengthening continuously in international market. According to market experts, crude oil prices have increased significantly in the past few weeks, which will increase the Guar Gum Powder demand.
Crude oil prices at its highest level of last One Year. With increasing crude oil prices & production, international demand of guar gum will increase in same proportion, as Guar Gum Powder is largely used in oil drilling industry.
Major demand of guar gum (in oil sector) is expected to rise from USA, RUSSIA, CANADA, ARGENTINA, CHINA and other new oil exploring countries.
Ocean Freight Rate V/s Final Price calculations
For your info, all Shipping lines have increased Ocean Freight rates considerably very high for all destination ports all over world; this affected the final price quote on higher side. Also there is great difficulty to get the container space in vessel (even after we are ready to pay double freight rates booking availability is difficult ) and normal booking waiting time is minimum 3 weeks. So, please plan your shipment accordingly.
Also, after this “SUEZ CANAL BLOCKED” incident last month , the empty containers’ inventory in India affected badly and the ocean price has increased very high.
Present v/s Future Guar Market Price
The overseas demand is at moderate level. The price may increase further in anticipation of rise in Export demand of Guar Gum Powder in Oil-drilling sectors, in wake of firmness in crude oil prices.
Guar is not just a kind of agricultural product. This is a multi-purpose agricultural product. In future, demand for guar can increase from any industry.
Demand for Guar used in Food products and Pet feed industries is also in progress. Prices of Guar Meal (by-products of guar seeds i.e. Guar Churi and Guar Korma) have now been set at their highest levels. This is another reason for Guar Raw Material to remain and maintain it’s price levels.
In view of the above market situation, still the price level is good for the consideration to cover your requirements for Guar Gum Powder.
Please check and advise us your requirements for Guar Gum Powder enable us to offer you our best price as per the current market situation.
We assure you for our competitive price and good quality product with best services.
We expect to receive your favourable response.
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Gaur Monthly Research Report November-2019 | Download |
