Guar Raw Material Price Trends and Market Outlook (August 2024)

The Guar Raw Material price is stable at moderate level during first 6 months of Year 2024 and prices were fluctuating up and down with very narrow range.

Monsoon effect – June/ July

The first round of Monsoon rains in June-July 2024 on Guar growing areas is below average, delayed and scattered (not fully) supported the guar prices on higher side. The sowing of Guar seed has not yet started in full swing.

These conditions supported and affected the guar raw material price on higher side in last 10 days of July Month.?

New production of Guar crop will now come after 04 months, until new production will not be in the market and the price movements (trend) in the market will depend on progress of monsoon rains over guar growing areas in next two months, guar sowing areas and the export demand of guar.

Ocean Freight Rates

Shipping lines have increased ocean freight rates by 2-3 times compared to four months ago, with rates rising every 10-15 days. Container booking and vessel availability are very limited, making it difficult to secure confirmations. These factors have significantly raised the final cost and price of guar products.

?Present vs. Future Guar Market Price

Export demand for Guar Gum Powder and Guar Meal has increased in the past 2-3 months, notably in Russia, the USA, Europe, and China, where it is used in both food products and oil drilling. Currently, overseas demand is moderate, but prices may rise further due to anticipated increased demand in the oil-drilling sector, driven by stable crude oil prices.

Next Round of Monsoon Rains / Guar Crop / Future Price

?Monsoon Impact: Below-average rainfall has reduced yields in some areas, while other regions report healthy growth. Price volatility will be high throughout the monsoon season. If the second and third rains are weak, prices could rise by USD 300-400 per metric ton. Even with good rains elsewhere, prices won't drop significantly until the new crop arrives in late October or November 2024.

Price Outlook: Prices are expected to remain volatile due to economic uncertainties, crude oil price changes, and the monsoon's impact on yields. The projected price range for the rest of 2024 is USD 1600 – USD 2000 per metric ton FOB, with stability dependent on strong subsequent rains.

?We will advise you the further Updates from time?to?time.