Xanthan Gum Price Trend and Forecast

Xanthan Gum Regional Price Overview

Get the latest insights on price movement and trend analysis of Xanthan Gum in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Xanthan Gum Price Trend for the Second Half of 2024

In the second half of 2024, the Xanthan Gum market saw notable price fluctuations across regions, influenced by varying demand patterns, supply chain disruptions, and global production factors. In North America, prices initially rose due to strong demand from industries like domestic oil drilling but later declined, following trends in China, the world's largest producer.
 

Xanthan Gum Price Chart

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Despite logistical challenges such as shipping delays and high costs, the North American market remained relatively resilient. Meanwhile, in Asia, particularly China, prices increased due to robust international demand but softened as inventory levels grew and export demand from major markets like the US and Europe weakened, creating a more competitive market.

In Europe, especially in Germany, prices followed a similar trajectory, rising initially before decreasing as the market mirrored global trends. The European market, driven by steady industrial demand and ongoing logistical challenges, reflected broader global pricing shifts. Regional demand, coupled with supply chain issues, shaped the overall trend, leading to fluctuating prices across the continent. Despite these challenges, the global market remained interconnected, with regional conditions influencing overall Xanthan Gum pricing.

Analyst Insight

According to Procurement Resource, the prices of Xanthan Gum are expected to show regional variations in the prices depending on the local supply and demand patterns.
 

Xanthan Gum Price Trend for the First Half of 2024

In the first half of 2024, the xanthan gum market experienced notable price fluctuations influenced by a variety of supply, demand, and global economic factors. Xanthan gum, a polysaccharide derived from the fermentation of sugars by Xanthomonas campestris bacteria, is essential across various industries due to its thickening and stabilizing properties.

During the first quarter, the market price of xanthan gum continued to decline, though at a slower rate than in the previous quarter. The market supply tightened as upstream production companies reduced their operating rates due to falling prices, particularly when prices dropped below certain thresholds. This led some small and medium-sized manufacturers to halt production, shifting the market supply from loose to tight. Additionally, stabilization in the prices of key raw materials like corn and coal provided some cost support, contributing to the narrowing of the price decline. Improved overseas demand also helped, with an increase in export volumes and average export prices, especially post-Spring Festival.

As the second quarter began, the xanthan gum market witnessed a reversal of the downward trend observed earlier. April saw a marginal decline in prices, primarily due to subdued demand in both domestic and international markets, compounded by external factors such as port congestion in key economies, leading to delivery delays. However, by May and June, there was a consistent appreciation in xanthan gum values across both domestic and export markets in China. This increase was driven by boosted global demand, disruptions in trade flows, and steady output levels from manufacturers focusing on immediate demand dynamics.

The oil drilling sector emerged as a significant driver of demand growth in May, with xanthan gum’s applications in various drilling environments fueling market expansion. Innovations in biopolymer technologies further stimulated demand. Major industry players expanded production facilities and introduced new products to meet escalating demand both domestically and internationally.

Despite challenges such as rising freight charges and port bottlenecks, the supply of xanthan gum remained sufficient throughout the quarter, with suppliers maintaining moderately stocked warehouses. Enhanced port activity, particularly at the Port of Shanghai, played a crucial role in maintaining supply chains and supporting global trade amidst logistical challenges.

Consumer confidence in xanthan gum remained strong, benefiting domestic businesses. As the quarter concluded, the market was in a state of cautious optimism. While demand remained robust, sustaining the growth observed in June would depend on economic indicators, export trends, and policy support for the manufacturing sector's recovery. The first half of 2024 underscored the dynamic nature of the xanthan gum market, highlighting the need for industry stakeholders to adapt to evolving conditions to ensure continued success.

Analyst Insight

According to Procurement Resource, the price of Xanthan Gum is expected to continue its northwards trajectory in the next quarters as well. The end-user industries are likely to further increase their sales figures, and as the summer months approach, industrial production is also estimated to improve, supporting the demand for xanthan gum.
 

Xanthan Gum Price Trend for the Second Half of 2023
 
Xanthan gum prices readily mimicked the fluctuations experienced in the feedstock market, namely sugar and corn starch. The Asian market started on a stable note at the beginning of the third quarter as the prices fluctuated within a confined range during the third quarter of the year 2023. However, a supply glut was witnessed in the market at the beginning of the fourth quarter, which pushed the price curve down.

The easy and affordable availability of the feedstock during this time also influenced this market trend. It was around the year-end months that the xanthan gum market started to incline marginally. Overall, a fluctuating market performance was witnessed for xanthan gum in H2’23.

Analyst Insight

According to Procurement Resource, the Xanthan Gum prices are likely to vacillate within limited ranges going forward as well. The supply and demand outlooks do not look very promising for the coming times.
 

Xanthan Gum Price Trend for the First Half of 2023

As Xanthan Gum is fermented from agricultural products like corn, wheat, sugarcane, etc., the price trend for Xanthan Gum are largely dependent on its feedstock price trend. The Xanthan Gum market behaved in a very fluctuating manner. However, the market sentiment was observed to be inclined for most of the period.

Rising global inflation, along with curtailed supply chains, were primarily responsible for the rising grain prices. Some opposing trend were, however, seen as the Black Sea deal among Russia, Ukraine, and the United Nations came into effect, giving access to the Ukrainian produce as well. Overall, high swinging price trend were observed.

Analyst Insight

According to Procurement Resource, the price trend for Xanthan Gum are projecting similar fluctuating patterns in the upcoming months, given the unsettled feedstock supplies and downstream demand.
 

Xanthan Gum Price Trend for Second Half of 2022

In the Asian region, domestic maize starch production gained momentum and the cost of maize starch kept on rising positively impacting the xanthan gum market. The region also witnessed a slow supply of goods, an increase in crude oil production, and high demand from the end-user industries. The increased cost of production positively impacted the price trend for xanthan gum in the third and fourth quarters of 2022.

After a period of stagnancy, the production lines rose as the manufacturers saw a surge in prices to deal with the insufficient supply. The major cause of this incline is the surge in oil production in Saudi Arabia, supporting the production of xanthan gum. The rise in oil production enabled the manufacturing plants to increase their capacity and provide higher product outputs which helped in stabilizing the supply-demand equilibrium. With enormous demand and improved trading prices, the prices trend rose significantly during the concerned period.

Analyst Insight

According to Procurement Resource, the price trend for Xanthan Gum are expected to follow an upward trajectory owing to the significant demand from the end-user industries. Also, with support from the Saudi Arabia oil market, the prices of xanthan gum are expected to flourish in the upcoming months.
 

Xanthan Gum Price Trend For the First Half of 2022

The price trend for Xanthan Gum surged throughout the said period. Regarding xanthan gum prices, the mainstream transaction price of domestic food-grade xanthan gum 80 mesh averaged 36000-36500 RMB/ MT. The export price was significantly higher than the domestic price, and demand increased steadily. With the rising oil prices, the industry balance was lowered, causing the supply to suffer. Owing to the mismatch of market dynamics, the prices surged due to robust downstream demand.

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