Real Demand Replaces Speculative Trading in Guar Gum Market

The guar gum market in India, is showing clear signs of recovery, with prices expected to rise soon, says industry expert Vallabh Patel. Despite recent speculative fluctuations, solid domestic and export demand is driving market optimism.

Current Guar Gum Market Situation

Prices Are Expected to Rise Because:-

• Exports Above Expectations: Indian guar gum exports have surpassed initial estimates.
• Limited Availability: Current supplies are tight, boosting market confidence.
• Stable Demand: Demand remains high domestically and abroad, supporting firm pricing.
• Upcoming Monsoon: Positive monsoon forecasts in the next two months could further boost sentiment and prices.

Up-Coming Months of Demand

Significant price movements are likely within two months as half of India's guar gum production is already booked. Demand for guar korma continues to rise, indicating strong market fundamentals.

Currently, guar gum production is around 15,000 tonnes monthly, keeping supplies steady. However, weather disruptions could quickly tighten the market and push prices higher.

Outlook for Traders and Processors

As genuine demand replaces speculation, traders and processors should be prepared for higher guar gum prices. With export orders firm and steady consumption trends, the market is set for real, sustainable growth.