Attention! The price of xanthan gum shot up

Market overview for this period

In March, the domestic corn Starch enterprises resumed production one after another, the domestic corn starch overall continued to rise, the downstream trade subjects had a strong wait-and-see attitude, the overall trading in the starch market was relatively light, the starch inventory gradually increased, the overstock of inventory caused some manufacturers to reduce the entry price and accelerate the delivery, driving the domestic corn starch market price to continue weak adjustment.

The supply is strong and the demand is weak, and the domestic corn starch market price is under pressure. In a comprehensive view, the raw material cost has risen slightly, and the processing cost continues to be high, which will support the domestic corn starch market price to a certain extent, and the future market starch price will continue to decline with limited space.

The trend is as follows:

Factory conditions

Fufeng: affected by the epidemic, there are many orders accumulated in the early stage. This month, the goods are delivered in a centralized manner, and the supply is seriously strained. At present, the new policy has been issued. 14 days after the oil order is placed, 21 days after the food order is placed. In fact, the new order of Fufeng has been placed in May. After the price increase of $40 last month, the price increase of $50-100 per week is basically increased in March. The price increase situation slows down at the end of the month, and the price tends to be stable. The overall average price increase of each category in the whole month is about $150. In addition, it is reported that after the technical rectification of Fufeng oil level, the company will focus on the production of oil level products that meet API specifications. Whether this will help the plant reduce the cost of oil level and pull the price of Fufeng oil level to the same level as Meihua is unknown for the time being, which is of sustainable concern.

Meihua: in March, Saudi Arabia's crude oil production increased, resulting in an increase in the use of oil grade XANTHAN GUM. Schlumberger, Halliburton, Aramco and other large international oil service enterprises focused on procurement, which led to a surge in export volume this month, and pushed the overall xanthan gum price rebound. After Meihua announced the price increase in early March, the price continued to rise, with weekly adjustments ranging from $50 to $100. Oil grade delivery is tight. Orders are announced to be full in April and delivery will be relatively tight in May. Food grade is relatively well delivered, but there are also restrictions on customers. It is not allowed to deliver more than 32 tons at a time. European and American standards and other high-quality goods are basically not available, and there are many national standards.

Deoson: Deoson has been stable from December to now, because Deoson's market positioning is high-end yellowThe original rubber market, for the time being, does not mean the price war between Fufeng and meihua. At present, Deoson is in a stable state, and the quotation remains unchanged. There is a real order to negotiate.

Jianlong: according to the news, due to the high market price of xanthan gum, Jianlong company is ready to reopen the production line in April. The capacity of new production line and old equipment of Jianlong company is 1W tons, which is not expected to be full in the preliminary stage. The policy is adjusted in time according to the market changes.

ECHEMI summary

Affected by the epidemic situation, the early delivery was insufficient, and the market was short of goods. Since March, Saudi Arabia's oil production increase has led to a large increase in demand for xanthan gum, and each factory has centralized production capacity to supply large customers, with a serious shortage of supply capacity. The full order arrangement has led to a sustained price increase of the factory. The supply and demand of this month is seriously unbalanced. The price of xanthan gum cannot be affected by the rise and fall of raw materials. All factories are full of production and full of sales, and the continuous price rise has become a formula.

Market forecast for the next period

ECHEMI forecasts

In march, the orders of each factory were overloaded, and the delivery plan of April was fully arranged in advance. It is expected that the price of xanthan gum will be relatively strong in April. Under the influence of the imbalance between supply and demand, the trend of the raw material corn starch has little influence on xanthan gum. However, the price of xanthan gum has basically reached the highest level in recent years. Now the situation of foreign epidemic situation is severe, the devaluation of currencies of various countries has seriously affected the rate of customer orders, which is likely to Lead to the delay of foreign demand, and the price of xanthan gum is likely to be difficult to make a big breakthrough.

ECHEMI forecasts April xanthan gum prices will have a small adjustment, difficult to have a big breakthrough.