Crude is going down toward USD 60/ barrel. Expert are predicting it toward USD 30/ Barrel. How will it effect the guar gum industry ? Shale Gas Production may decrease Crude is base of energy industry. Shale gas has emerged major competitor to crude oil It will directly effect the shale gas production. Shale gas production is major activity where guar gum powder in used in large quantity. If shale gas production goes down then it will directly effect the guar gum consumption. and it will further miss match the demand and supply. In this condition guar gum prices will come down. It may touch the November-December 2010 level. November - December 2010 guar gum level was around INR 5000 - 6000 / 100 Kg. in that condition guar seed may touch INR 1700 - INR 1800 Level. Shale Gas Production may increase In the condition of hyper competition, Shale gas production companies may increase the production. These companies may increase the quantity to increase there overall profit. If the production increases then companies work on input cost control. Defiantly these companies will pay less for guar gum or these companies may switch on guar gum alternatives. All the alternatives are synthetic and rate of product can be controlled. Again guar gum may reach to the level of November - December 2010 rates. Next 5-6 month are very criticle for guar gum industry specially in context to Guar Gum application in Shale Gas production.
Posted on: Fri, 05 Dec 2014 13:11:46 +0000
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