InfoFebruary 21, 2014 · Press Release
Guar Gum: Hidden Volatility or Smooth Sailing?
In a new 2014 report on the State of the Guar Gum Industry, the leading Indian research advisory company – Three Headed Lion, Inc. – shows that while prices are down this year, there are several hidden factors that could trigger volatility, as the year progresses.Press Release VideoLoading the player...Details(prREACH)
This report is about an obscure commodity known as guar gum, an ingredient used in everything from baking and beverages, cosmetics, pharmaceuticals, fertilizers, to fracking in the oil and gas industry. Yes, you heard that right, fracking. With 80 percent of the world’s crop coming to us from sleepy farms in western India, industry experts are concerned that yo-yo effect of demand and supply continues to reveal a market weakness.
For example, in late 2011 and early part of 2012 the price of guar gum shot up over 1400% within a span of 6 months. This sudden spike was driven by insatiable demand from the oil and gas services sector in the US.
Most companies from food and beverage as well as other sectors, as you can imagine, experienced shocking unplanned cost escalations. And in the oil and gas services sector, one of the leading services companies publicly blamed their negative margin results on the unforeseen increase in guar gum prices.
So have things changed this year?
In a new 2014 report on the State of the Guar Gum Industry, the leading Indian research advisory company – Three Headed Lion, Inc. – shows us that while prices are down this year, there are several hidden factors that could bring back the volatility. Company president and founder Javed Matin explains: “The market has kicked off 2014 with a strong supply of guar seeds, stable demand and low prices. But despite these favorable conditions for buyers, the guar gum market remains worrisome, due to the complex and opaque nature of its supply chain. We see signs that businesses remain exposed to manipulation by vested interests.”
In their just-released report, Three Headed Lion, Inc. uncovers the factors fueling uncertainty in the supply chain by analyzing each element from ground up and answers the main questions surrounding this volatile industry. The 74 page report uncovers critical data for planning and budgeting, negotiations, and supplier selection purposes.
Political considerations are also going to be a factor, as India is going through its election cycle this year, as the report points out.
IN THE REPORT:
What market forces are at play that could disrupt the stability in guar gum supply and prices in 2014? What should buyers do to mitigate risk? Who are the key stakeholders in the industry, how do they act and what impact they make? What is the state of guar gum’s supply chain? What are the latest drivers and inhibitors for this industry? What is the projected demand for guar gum? What is the consumption mix by industry sectors? Who are the leading buyer countries for guar gum? What is the current stock of guar and can it meet projected demand? What is the processing capacity and can it meet projected demand?
ABOUT THREE HEADED LION, INC. Three Headed Lion, Inc. (THL) is a leading India focused distributed market intelligence, research & risk management company. The company is headquartered in Houston, TX.
THL has unrivaled last mile intelligence connectivity in India. We provide macro and ground-level insights and expertise to global businesses, investors and institutions to enable success in the complex, high potential Indian market. Our operational network of 1,000+ market intelligence and information (MIIPs) providers located in 640+ districts across the subcontinent.
CONTACT >> Three Headed Lion Inc. | Phone: +1-713-962-9168 | Email: [email protected]LinksQuotes“The present supply and demand trends point to price stability, however, history has taught that relying solely on supply and demand could prove extremely risky for predicting prices for this market.”ImagesContact
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