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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:

  1. Subdued demand for Guar Gum from the shale oil & gas industry
  2. Partial, and in some cases complete, replacement of Guar Gum in food, petfood, mining, erosion control, etc
  3. Timely onset of the Southwest Monsoon in the state of Kerala in India
  4. 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.