For the Quarter Ending September 2025
North America
• In the U.S. and Canada, the Xanthan Gum Price Index fell by ~7.5% quarter-over-quarter, driven primarily by weak export enquiries and elevated domestic inventories.
• The average Xanthan Gum price for the quarter was approximately USD 2,150.00/MT (conservative, data-consistent estimate).
• Xanthan Gum Spot Price remained pressured as distributors and oilfield suppliers ran down orderbooks while new inquiry volumes stayed light.
• Xanthan Gum Price Forecast indicates limited near-term upside absent a recovery in oilfield drilling activity or stronger food-processing demand.
• Xanthan Gum Production Cost Trend stayed benign thanks to ample carbohydrate feedstocks and steady processing margins.
• Xanthan Gum Demand Outlook remains subdued with low rig counts and cautious downstream procurement limiting bulk buys.
• High inventories among producers and importers pressured the Price Index, prompting tactical discounts to stimulate spot activity.
• Logistics operated smoothly, enabling steady deliveries and preventing supply-side disruptions that might otherwise tighten markets.
Why did the price of Xanthan Gum change in September 2025 in North America?
• Elevated inventories and weak export procurement reduced seller leverage, leading to price concessions.
• Low oilfield rig activity curtailed demand for drilling-grade xanthan gum.
• Stable production and smooth logistics sustained supply availability, keeping downward pressure on spot prices.
APAC
• In China, the Xanthan Gum Price Index fell by 8.84% quarter-over-quarter, driven by export demand.
• The average Xanthan Gum price for the quarter was approximately USD 2096.67/MT, reflecting subdued export activity.
• Xanthan Gum Spot Price remained pressured by inventories, limited inquiries, domestic oilfield operators and traders.
• Xanthan Gum Price Forecast indicates modest near-term stability with limited upside absent substantive drilling activity improvements.
• Xanthan Gum Production Cost Trend remained benign due to ample carbohydrate feedstocks, limiting upward pressure.
• Xanthan Gum Demand Outlook stays subdued as oil rig counts remain low, constraining bulk procurement.
• High inventories and production pressured the Xanthan Gum Price Index, prompting tactical discounts from exporters.
• Exporters offered competitive terms to stimulate spot activity while smooth logistics prevented further supply disruptions.
Why did the price of Xanthan Gum change in September 2025 in APAC?
• Elevated inventories across domestic and export channels reduced seller leverage, forcing price concessions attracting buyers.
• Muted international procurement, especially from Middle Eastern oilfield operators, curtailed demand for drilling-grade xanthan gum.
• Stable production and ample carbohydrate feedstocks maintained supply, while smooth ports significantly exacerbated oversupply pressure.
Europe
• In Italy, the Xanthan Gum Price Index fell by 7.22% quarter-over-quarter, reflecting subdued oil drilling demand.
• The average Xanthan Gum price for the quarter was approximately USD 2228.33/MT, supported by supply.
• Well-maintained inventories and smooth logistics tempered the Xanthan Gum Spot Price, notably preventing seller-driven increases.
• Supplier flexibility and small-lot offers shaped the Xanthan Gum Price Forecast towards downside into year-end.
• Stable feedstock availability sustained the Xanthan Gum Production Cost Trend, limiting upward pressure on margins.
• Italy's Xanthan Gum Demand Outlook remains weak due to muted drilling activity and procurement strategies.
• Importers drawing down carryover stocks reduced immediate buying, compressing the Xanthan Gum Price Index downward.
• Major exporters’ uninterrupted production supported availability, limiting bids and stabilising short-term Xanthan Gum market activity.
Why did the price of Xanthan Gum change in September 2025 in Europe?
• Excess inventories across Italian importers reduced immediate purchasing urgency, weighing on spot and pricing levels.
• Subdued oil drilling activity lowered consumption, suppressing demand signals and preventing upward price momentum thereby.
• Smooth logistics and consistent exports removed supply disruptions, allowing suppliers to offer concessions to secure orders.
For the Quarter Ending June 2025
North America
• The Xanthan Gum Spot Price in North America held moderately firm throughout Q2. This firmness of market was supported by stable demand from both food-grade and oilfield sectors.
• The Xanthan Gum Price Forecast for Q3 2025 indicated a cautiously bullish outlook, backed by seasonal increases in food additive consumption and a gradual uptick in domestic drilling projects.
• Why did the price change in July 2025?
Xanthan Gum prices edged higher due to lean distributor inventories and resumption of energy-sector procurement, amid rising container costs.
• The Xanthan Gum Production Cost Trend remained stable during Q2, as local blending units experienced no major input or operational constraints.
• Buyers predominantly followed just-in-time procurement practices, keeping inventories minimal to hedge against macroeconomic and trade uncertainties.
• The Xanthan Gum Demand Outlook remained mixed, with consistent offtake in food and beverage applications, while demand in industrial and oilfield sectors was still recovering.
• Logistics performance across major U.S. ports stayed efficient, ensuring smooth product flow and minimizing shipment delays.
• Bulk procurement was largely avoided as buyers focused on contracted volumes and pricing stability due to compressed operating margins.
• Asian exporters continued to supply consistent volumes into the U.S. market, aided by flexible deal terms and mid-term delivery contracts despite ongoing tariff concerns.
Asia Pacific
• The Xanthan Gum Spot Price for oil drilling grade declined sharply by 8.03% in June 2025 and settled at USD 2,175/MT FOB Qingdao due to stagnant offshore drilling activity.
• The Xanthan Gum Price Forecast for Q3 remained under bearish pressure unless renewed international tenders or export stimulus measures materialize.
• Why did the price change in July 2025?
Prices stayed flat in July as Chinese producers have maintained floor pricing to protect margins despite weak overseas offtake.
• The Xanthan Gum Production Cost Trend remained unchanged through Q2, with steady corn-based feedstock availability and continuous production across key provinces.
• Inventories accumulated through Q2 as export volumes slowed, even though domestic plants continued operating at full capacity.
• The Xanthan Gum Demand Outlook was lacklustre, particularly from the Middle East and Southeast Asia, with no major new contracts or tenders awarded.
• Port operations at Qingdao faced no disruption in Q2, supporting uninterrupted but low-volume international shipments.
• A brief uptick of +0.21% in May 2025 failed to shift overall Q2 sentiment, which remained decisively bearish.
• Suppliers launched short-term price promotions to boost sales into non-U.S. regions, attempting to offset volume losses caused by tariff-sensitive markets.
Europe
• The Xanthan Gum Spot Price in Europe remained stable and was driven by steady demand across food, cosmetic and personal care industries.
• The Xanthan Gum Price Forecast for Q3 hinted at mild upside potential, particularly if bakery and dairy ingredient consumption improves and oilfield activity recovers in Northern Europe.
• Why did the price change in July 2025?
A modest price increase in July was supported by proactive restocking from food processors and early signs of renewed technical-grade demand.
• The Xanthan Gum Production Cost Trend for Chinese imports remained steady through Q2, with no significant fluctuations in CIF values or supply chain disruptions.
• European distributors maintained lean inventory cycles through Q2 to mitigate overstocking risks ahead of a variable Q3 consumption pattern.
• The Xanthan Gum Demand Outlook remained healthy in food-related applications such as sauces, bakery, and meat processing, while demand for industrial grades remained subdued but stable.
• Port logistics at Hamburg, Rotterdam, and Antwerp facilitated uninterrupted product movement throughout Q2 with no weather-related or operational delays.
• Most buyers opted for fixed-rate contracts to manage exposure to future freight or commodity volatility.
• Forward orders into Q3 were confirmed, though the overall European sentiment remained measured, with traders showing no signs of speculative bulk procurement.
For the Quarter Ending March 2025
Asia Pacific: - US$ 2360 /MT, -5.9% Down
India: - INR 240000 /MT, -4.2% Down
Asia-Pacific (APAC)
• The Xanthan Gum Price Index in the Asia-Pacific region witnessed a downward trend in April 2025, after the first quarter recorded an average price decline of 1.44% due to moderate demand from downstream sectors.
• Why did the spot prices change in April 2025?
The Xanthan Gum Spot Price eased down marginally, primarily influenced by softer demand from the pharmaceutical, nutraceutical, and personal care sectors. Spot Prices of Xanthan Gum settled around USD 2360/MT during April 2025 in China.
• Seasonal factors and the post-winter slowdown led to temporary production moderation and lower order volumes.
• Suppliers practiced careful inventory control, anticipating a gradual rebound in Q2 demand cycles.
• Holiday-related production pauses in China and other producing countries briefly affected output but did not cause major supply disruptions.
• Buyers opted for conservative procurement strategies, focusing on inventory sufficiency rather than bulk restocking.
• The Xanthan Gum Production Cost Trend remained manageable as raw material prices and operating conditions stayed stable.
• The Xanthan Gum Demand Outlook remains modest but is expected to improve with the onset of warmer months and heightened industrial activity.
• The Xanthan Gum Price Forecast indicates potential firming if demand from personal care and food sectors strengthens in Q2.
North America
• The Xanthan Gum Price Index in North America showed a falling price trend in April 2025, reflecting marginal softening in prices due to cautious seasonal buying during the winter-to-spring transition.
• The Xanthan Gum Spot Price remained largely stable with minor downward adjustments, driven by strategic stock management and steady, albeit cautious, demand from pharmaceuticals, nutraceuticals, and food sectors.
• Procurement activity slowed slightly as buyers minimized surplus inventory, anticipating a seasonally lower consumption phase.
• Although minor logistical delays occurred due to weather-related factors, the overall supply chain functioned efficiently.
• Discussions over tariffs in early Q1 contributed to buyer-supplier caution, influencing pricing offers.
• Inventory levels remained balanced, with suppliers aligning prices to global benchmarks and avoiding aggressive pricing shifts.
• The Xanthan Gum Production Cost Trend remained stable, allowing producers to maintain profitability amid soft demand.
• The Xanthan Gum Demand Outlook for Q2 2025 remains stable, with a potential uptick as warmer months boost food and beverage applications.
• The Xanthan Gum Price Forecast suggests mild volatility depending on seasonal demand recovery and global trade dynamics.
Europe
• The Xanthan Gum Price Index in Europe experienced a downward price momentum entering in April 2025, following prices remaining steady to slightly subdued during Q1.
• The Xanthan Gum Spot Price eased marginally in specific markets, consistent with global trends and cautious downstream demand.
• Demand remained flat across pharmaceuticals, personal care, and food & beverage sectors, with no major surges in consumption.
• The seasonal transition influenced procurement patterns, as buyers aimed to balance stock levels ahead of expected Q2 production shifts.
• Logistics remained smooth, supporting stable supply availability throughout key European markets.
• Suppliers mirrored global price trends and adjusted offers slightly to align with cautious regional demand.
• The Xanthan Gum Production Cost Trend was steady, with no major fluctuations in input costs during Q1.
• The Xanthan Gum Demand Outlook for Europe is stable, with modest improvement likely as seasonal product applications increase.
• The Xanthan Gum Price Forecast signals continued stability, barring unexpected supply disruptions or sharp demand shifts.
For the Quarter Ending December 2024
North America
During Q4 2024, the Xanthan Gum 80 mesh market in North America experienced consistent downward price trends. October began with initial price declines as supply outpaced demand from oil drilling operations. Buyers reduced their procurement activities, adopting a wait-and-watch approach in anticipation of further price drops. The oil and gas sector's moderated requirements, combined with ample spot availability, created downward pressure on prices.
November continued the bearish trend as market fundamentals remained soft. Supply chains maintained healthy inventory levels while demand from drilling operators remained subdued. Buyers leveraged their position to negotiate increasingly favorable prices, leading to further price erosion across the region. Multiple distributors reported oversupplied positions, enabling them to secure better deals. The market witnessed cautious trading activity as end-users maintained minimal buying patterns.
December saw further price deterioration as year-end activities remained sluggish. Domestic suppliers struggled to maintain price levels amid weak demand from drilling operations. The market's downward momentum was reinforced by destocking activities and decreased consumption patterns through quarter-end. Several key manufacturers reported surplus inventory amid tepid demand from the oil and gas sector. The combination of year-end inventory adjustments and competitive market conditions contributed to the continued bearish sentiment.
APAC
In Q4 2024, Xanthan Gum 80 mesh prices in APAC markets showed persistent downward movement. October registered price decreases as exporters reduced their offers amid sluggish domestic and international demand. Producers faced pressure to move volumes despite lower production rates, while weak inquiries from oil field operators maintained the bearish sentiment. The market witnessed slow trading activity as buyers continued to postpone purchases.
November saw further price deterioration as market fundamentals weakened. Manufacturers continued to adjust their pricing strategies downward amid poor demand and abundant supply availability. Regional trading activity remained minimal as buyers maintained their cautious stance, leading to additional price concessions from suppliers. Several facilities reported high inventory positions, while export inquiries remained weak. The competitive market environment forced producers to offer increasingly attractive terms.
December continued the downward trend as manufacturers struggled to maintain price levels. Several facilities reduced production rates amid persistent weak demand. Export prices remained under pressure, impacted by low inquiry levels from international markets. The domestic market showed no signs of improvement as local drilling operators maintained low procurement volumes. Major producers reported reduced capacity utilization rates while managing high inventory levels.
Europe
In Q4 2024, Xanthan Gum 80 mesh prices in Germany and broader European markets tracked the global downward trend. October began with price declines as buyers received lower offers from suppliers. European producers reduced prices amid weak demand from the oil drilling sector. The market witnessed minimal trading as distributors postponed purchases, anticipating further price decreases. Major manufacturers reported weak order books.
November saw continued price erosion as market conditions remained unfavorable. Buyers maintained their advantage amid ample supply availability, securing increasingly lower prices. The market witnessed reduced trading as distributors managed high inventories. Several buyers reported sufficient stock positions, allowing them to push for better prices. Import volumes remained adequate, contributing to the persistent bearish market sentiment.
December's market dynamics maintained their downward trajectory as European distributors leveraged the oversupplied market. Weak regional demand and ample availability continued to pressure prices. Consumption patterns remained subdued across drilling applications, with suppliers forced to offer additional discounts through quarter-end. Year-end activities provided no support to the market as key buyers maintained minimal procurement volumes. Manufacturers reported reduced operating rates while managing high inventory positions despite the holiday season.
