Guar gum is India’s largest commodity export to the US.
“From the global supply perspective, India is currently a dominant global producer of guar, accounting for about 80 per cent of world production. In India, the largest production centres are Rajasthan and Gujarat, which is where the big export surge is presumably originating. This concentration pattern provides a possible explanation for the price surge in 2012-13. Anticipation of a drought, which could have significantly reduced production in India (as happened in 2009-10), may have led to advance buying, pushing prices up.”
At New Mexico University’s annual field day at the NMSU Agricultural Science Center this month, area farmers were introduced to the desert crop guar gum. 90% of the world’s guar gum is grown in India. Let’s see what the research at the science center comes up with, and if we can increase the production of guar gum in the US!
Don’t forget about our lab’s guar gum replacements!
Stabilizer EC Description: A proprietary blend of natural gums; non crosslinkable. Uses: It’s synergistic reaction is an ideal replacement for guar gum in erosion control applications as a tackifier, hydro‐mulching and hydro-seeding as a tackifier, oil drilling as a linear gel, and other mid‐viscosity applications.
Stabilizer KK Description: A blend of natural gums; non cross‐linkable. Uses: In hydroseeding as a tackifier and other lower viscosity applications.
Frac ST Description: Cross‐linkable with organic based crosslinkers and performs closest to Guar at same use levels. Uses: Oil drilling industry.
CJ4 Uses: Oil drilling industry.
Stabilizer EX55 Description: A proprietary blend of hydrocolloids. Uses: Carpet printing and continuous dyeing fields.
Stabilizer ECDF Uses: Wet pet food manufacturing
The USITC should be making the final ruling on or before July 12, 2013, regarding a duty on xanthan gum coming from China and Austria.
Nobody knows how long guar prices will remain stable. According to this article, much of the current guar crop in India has been infected by fungus due to the insufficient monsoons.
Canada is home to tar sands, a deposit of thick, heavy oil. “Sourcing more oil from Canada achieves the politically desirable goal of making the US less dependent on OPEC.”
Guar gum is now India’s top farm export, overtaking rice and cotton. Thanks to the US oil and gas industry, the natural product, guar, is in high demand.
“The remarkable shift in US oil imports and its march toward self sufficiency has vital implications for global security and strategic affairs and experts say it will help redraw the global energy and security boundaries.” Pro of fracking: the US is becoming less dependent on the Middle East.
Due to the US anti-dumping tariff placed on Xanthan Gum imports coming from China and Austria, CP Kelco, a US manufacturer of Xanthan Gum, is expanding its San Diego facility by roughly 40%.
With the demand for xanthan gum increasing in the US and xanthan’s multiple uses in many industries, an anti-dumping tariff will hurt many US and Chinese companies. The tariff is expected to be as high as 154%.
“Chinese exporters of xanthan gum say they plan to quit the United States market after the US Department of Commerce imposed anti-dumping duties of up to 154 percent on the food additive coming from China.”
China and the US rely on each other for economic growth and trade.
“Low-priced Chinese goods have kept US consumer prices relatively low and served to propel economic growth. Business cooperation with China has, in effect, added an extra 1,000 US dollars to the annual disposable income of each American household.”
“The rising purchase ability of the Chinese people will become a main driver of the Chinese and world economy, which includes the US one.”
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Guar gum pricing is about $7,000/ton, down from $27,000/ton back in May this year.
Also, India normally sells 60% of its Guar to the oil industry and 40% to the food industry. But this year, the food industry has only bought 20% because of the high prices.
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US oil drilling and food companies are turning to Guar gum alternatives. Our company has Guar gum alternatives: for both industrial (oil drilling industry, hydroseeding, carpet dying, leather tanning, explosives, cat litter) and food (bread, ice cream, yogurt, salad dressing, juices, wet pet food). Contact us today for more information.
Oil companies began exploring Southern Kansas over a year ago, seeing enormous potential in the area now that new technologies like horizontal drilling and fracking have made it possible to tap into the oil-rich Mississippian Limestone formation. Thousands of jobs are coming to the area too.
“The economy accelerated despite the slowdown in the U.S. and China, indicating domestic demand likely accounted for a large share of the expansion,” wrote Marc Chandler, market strategist for Brown Brothers Harriman.
Nearly 90% of all goods traded across borders travel, in part, by sea. The fastest-growing routes are between ports in Asia.
At least a dozen new oil pipeline projects are slated to move forward in the United States over the next few years.
All told, the new projects will have the capacity to bring at least an extra 2 million barrels a day of oil to the U.S. Gulf Coast by 2015.
The industry and most oil analysts think the additional oil will be used by U.S. refineries, offsetting the need of some oil imports and potentially lowering gasoline prices.
American manufacturers are focused on investment, expansion and job creation. One important way to do this is by expanding their customer base. And, with 95 percent percent of the world’s population outside the United States, it is not surprising that American companies are looking at markets outside the United States. More business translates into more jobs and stronger companies.
With prices for natural gas so low, and prices for oil-based fuels so high, the idea of building plants to convert natural gas directly into liquid diesel and jet fuel is something more companies are looking into.
“Group’s main task is to keep the various federal entities all on the same page when it comes to developing new policies and regulations surrounding shale gas.
Part of their focus will also be on hydraulic fracturing, or fracking for short — a controversial technique that uses vast amounts of chemically-laced water, sand and pressure to crack shale rock and release the gas.”
U.S. manufacturers, frustrated by a shortage of skilled American factory workers, are going abroad to find them.