The recent price increases of about 35% came as a surprise. In India, the price increase is based on strong demand from the oil and gas business. We consider this argument incomprehensible. Certainly some market participants are interested in higher prices and use every opportunity to raise prices.
As a result of the daily rise in prices, a movement has begun to participate in the actual strategy, which in turn leads to further price increases.
It is probably true that the last harvest has been much lower than in previous years, but there is enough raw material from the last few years. (Guar seeds have a long shelf life). In addition, the capacities are far from being utilized. On our last trip, we saw a large number of production plants, which were standing still completely or operating at low capacity.
In these aspects, price increases are difficult to understand.
However, we are hesitant predicting further developments in the coming weeks, as we can not assess the actual demand in the oil and gas sector. However, we do not see any significant increases in prices.
We have constantly stock at our warehouse. We would be pleased to offer you.
March 16th, 2017