Newsletter

November

 
Topics in this issue:

  Market report guar gum
  Market report xanthan gum
  We keep you up to date
 

Market report guar gum

The new harvest in Rajasthan and Haryana is in progress and the crop comes to the market every day. The delivered quantities are sufficient and higher than predicted.

Unfortunately, it is still not possible to assess a reliable expected crop size. In recent weeks, reports of shortages of 35-40% versus the previous year were launched due to the adverse weather conditions.
These figures are now being questioned. We have information indicating a good harvest, although the quality does not seem to be very good in some of the growing areas. However, there are no reasons for great concern.

Buyers are reluctant to go into the market with big quantities in expectation of drop in prices. This attitude has driven down prices slightly.

There is an interesting effect originated by the oil industry. Due to the drop in prices for crude oil, the fracking companies come under pressure as the cost for drilling are relatively high. At the current price level for crude oil, the margins are getting smaller and this might have an effect on the economy on a few of the fracking fields. This new situation may influence the Guar gum volume needed by this industry segment.

The current situation is characterized by expectations of further falling prices. Consequently, the demand is not very high, but prices will go up immediately when larger orders will be placed.

We expect further price movements in the next few weeks. These can run in both directions. However, we do not expect dramatic changes.

We recommend coverage of Guar gum demand for medium term at current price level.

We will keep you informed further on.

Dietmar Neupert
7.11.2014
to the top
 

Market report xanthan gum

The market situation for Xanthan gum is stable at the moment.

The large price rally seems to have come to an end. Over the last few months the major Chinese producers pushed down prices in a breathtaking manner to gain market share or to at least keep the share for the established producers.

The current price level reached a point where it is questionable to allow producers to fully cover manufacturing costs.

Because of this situation we do not expect major price changes. It is more likely prices will pick up in the coming year. It depends again on the competitive position amongst the producers in China and, therefore, difficult to assess.

Costs for wages and energy are increasing. Furthermore, more stringent environmental regulations being implemented by Chinese administration will drive costs up in addition.

The currently strong US Dollar is influencing prices as well. Financial experts forecast a further weakening Euro for 2016 and beyond.

At current price level we recommend to cover medium term requirements at least.

We will keep you informed further on.

Dietmar Neupert
7.11.2014
to the top
 

We keep you up to date



Dear customers,

over the last few years we sent out market reports of some of our products and received very positive feedback.

Therefore we decided to issue a newsletter which we will publish regularly.
The newsletter will cover subjects such as market developments, products, price trends, application of products and news about Neupert Ingredients.

We hope that you will find the information helpful and we are looking forward to receiving your feedback.

Your Neupert Ingredients team
to the top
 

Neupert Ingredients GmbH
In der Boerse 9 | D-21441 Garstedt | Germany
Tel.: +49 4173- 51591 - 0 | Fax: +49 4173 51591 - 99
E-Mail: info@neupert-ingredients.de
You don‘t want to get our newsletter anymore? Please click here to unsubscribe