Despite the tariffs, xanthan prices in the US have barely moved upwards, yet! In Europe, a price of just under $2.20/kg (yes $/KG which means less than $1.00/lb) for Chinese material has been mentioned during one interview. In our 30+ year price history in the Quarterly Review, the lowest AVERAGE price, including Chinese and Western xanthan was $2.10/lb in Q4-2006. Here's the explanation we gave at that time in The Quarterly Review:

Xanthan Extract Q4-2006 Abridged

Every quarter seems like the ‘bottom of the barrel in xanthan pricing has been reached’. Then the barrel springs a leak. Xanthan prices continue their inexorable downward tendency albeit at a reduced pace. European producers of xanthan gum have been forced to compete and often meet Chinese pricing in xanthan. The distinction between US/European producers and Chinese producers is fading. Most western producers of xanthan now have a direct presence in China e.g. CP Kelco, Cargill, Danisco (Rhodia). Even Deosen, the largest xanthan producer in China is now linked to the West through ownership by Warburg Pincus. Fufeng has rebuilt its xanthan plant after a fire some years ago. Fufeng Fermentation has the potential for becoming an even larger producer of xanthan than Deosen. Fufeng is 4-5 times larger in the fermentation of alcoholic beverages than Deosen.

Some suppliers are choosing to “walk away from xanthan accounts where prices have simply gone too low.” A slight recovery in price is expected in 2007 as pressures of low margins, Chinese currency revaluation and rising energy costs force more producers to either hold for higher prices or fold and move out of an unprofitable business. Current margins are unlikely to justify any development or investment in innovation for xanthan gum. End of Xanthan Extract Q4-2006

At the other end of the scale, in Q4-2022, an average price (Chines & Western) of $19.25/kg ($8.75/lb) was recorded. Below the explanation in Q4-2022, (abridged):

Xanthan Extract Q4-2022 The xanthan tightness in availability is not quite as bad as starch but not far from it. When we ask xanthan producers, “shall we send potential customers your way?” the answer is either an outright “no thank you” or, at best, a hesitant “OK, but...” The factors which led to the xanthan tightness are not all the same as those which created the starch crisis but there is some overlap. Corn syrup, the raw material for xanthan production, is tight in Europe. The corn crop in the EU was much reduced because of extreme heat in the growing season caused by climate change. The very large corn crop of Ukraine has been drastically reduced because of the on-going war. What little corn has been produced in Ukraine is having difficulty in finding export channels. Baltic sea ports are open, then closed, then open again… Xanthan production is energy intensive and energy costs, especially in Europe, have skyrocketed. In the US a major producer of xanthan gum, ADM, ceased production over a year ago. Chinese exports were affected by regulatory issues (no xanthan from Xinjiang province) and by shipping/logistics nightmares. Xanthan has also been affected by recalls that were caused by a contamination with ethylene oxide. Until recently, China was the largest producer and supplier of xanthan to the US and Europe. This situation has changed drastically to the benefit of western producers of xanthan gum. In the US, xanthan supply from China is affected by high import duties on all Chinese goods. Then there are the special xanthan anti-dumping duties imposed on some suppliers. These anti-dumping duties range from 12.9% (weighted average) up to 154% for Deosen. The US has also imposed a strict ban on any product coming from the Xinjiang province where there is much xanthan produced (Meihua and one of Fufeng’s two xanthan production facilities). This ban is also applied by the UK but apparently not by the EU which continues to import xanthan produced in Xinjiang province, see elsewhere in this report. Chinese xanthan supplies worldwide were also affected by the government mandates relating to COVID lockdowns, energy price hikes and even unplanned power cuts. Chinese xanthan has been tainted by ethylene oxide (EtO) contamination issues. Delivery delays and lead times for Chinese xanthan gum are now about 5-6 months if not longer. For example, an order for Meihua xanthan in Europe placed in December 2022 would not be delivered until April/May 2023. On the other hand, Chinese xanthan prices remain competitive compared to western producers, especially in Europe where import and anti-dumping duties are not applicable. The bottom line is, xanthan supply is very tight and prices have suffered a continued and strong upward trend as a consequence. The overall average price in the US is estimated at $8.75/lb up 19% from $7.35/lb in the previous quarter. In Europe we estimate the same percentage increase of 29% taking the average price to €15.75/kg in Q4-2022 from €12.25/kg in Q3-2022.

It should be noted that these estimated prices take into account a declining volume of lower priced Chinese xanthan especially in the EU. Chinese xanthan, when it can be found, is priced below €10/kg. western xanthan, on the other hand is around €20/kg and even higher, if it can be found. End of Xanthan Extract - Q4-2022 IMR can and has produced 'special extract reports' from the past 31 years of The Quarterly Review of Food Hydrocolloids. A very detailed picture and historical evolution is presented to strategic decision makers in the world of hydrocolloids. Ask IMR for a custom quote for extracts on any hydrocolloid