Guar Prices Continue Down
Guar splits price has gone down further today and is about 30% down, in Indian Rupee terms, from its peak at the beginning of May-12. Please see the chart below.
The main factors for this fall in price are:
- Subdued demand for Guar Gum from the shale oil & gas industry
- Partial, and in some cases complete, replacement of Guar Gum in food, petfood, mining, erosion control, etc
- Timely onset of the Southwest Monsoon in the state of Kerala in India
- Reduction in export subsidy, given by the Indian Government, by 3%, effective yesterday
Guar Gum prices have also dropped due to the factors mentioned above. Additionally the Indian Rupee has depreciated by around 5% in the same period and this has brought down the Guar Gum price, in USD terms, even further.
Provided courtesy of Premcem Gums.