Another Price drop for the US Calcium Carbonate Amid Weak Demand
Another Price drop for the US Calcium Carbonate Amid Weak Demand

Another Price drop for the US Calcium Carbonate Amid Weak Demand

  • 06-Oct-2022 4:43 PM
  • Journalist: Harold Finch

The Calcium Carbonate market has faced rising operating costs and fallen demand throughout the third quarter of 2022. The increased regionalization of prices and widening ranges depending on inventories and cash flow position have been affecting the market sentiments of Calcium Carbonate in globally.

The ChemAnalyst database shows that the price trend of Calcium Carbonate declined by approximately 3.5% last week in the USA. The combination of excess inventories and a decline in consumer demand has directly impacted the benchmark prices of Calcium Carbonate in the domestic region. The U.S. shippers have witnessed a 20% drop in ocean freight orders amidst the demand curtailment across various sectors.

In Europe, the recent explosions in Germany's Nord Stream 1 pipeline in the Baltic Sea have further pressured the already affected gas supply to the German market. The rising energy prices and fluctuations in underlying conditions have negatively impacted the manufacturing capacities of Calcium Carbonate industries and their derivative industries. As per the observed market scenario, the market players are reluctant to trade off inventories at low values.

Furthermore, in India, the third quarter has been historically weak for the Calcium Carbonate market as construction activities remained dull during the monsoon season and the trend continued in 2022. The operating profitability of downstream cement manufacturers has declined due to an increase in average production costs. According to the managing director of India Cements, the Centre and southern states are expected to push housing and infrastructure projects, leading to expected track.

As per ChemAnalyst, if the adverse macroeconomic conditions persist for long enough, it will likely cause structural limitations in the growth of calcium Carbonate value chain and the linked commodities. The downstream market players reported that further price developments are complex, foreseeing the current climate. Furthermore, in China, national holiday of Golden Week will further hinder production activities, and demand is anticipated to remain flat in the forthcoming weeks.

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