Calcium Carbonate Prices are Strong in Q4-End; Q1 2023 Outlook Appears Promising
- 29-Dec-2022 10:29 AM
- Journalist: Nicholas Seifield
Throughout the fourth quarter of 2022, the construction industry has remained muted, backed by low downstream demand, higher operating costs, and weak market sentiments. The higher interest rates and continued inflationary pressures have been negative headwinds for several commodities employed in the construction sector, including Calcium Carbonate.
In India, the construction sector has witnessed a turnaround in downstream cement demand since mid-November 2022, strengthening the market sentiments for upstream Calcium Carbonate. The increased government spending on infrastructure and housing projects has boosted the fundamentals for raw materials. The Chief Executive Officer of One of the leading downstream market players, Birla Corporation Ltd., has quoted that although profitability was not high, we were able to maintain at least the volume portion to some level. The ChemAnalyst database has shown that the price trends of Calcium Carbonate have been consistently rising since the start of December 2022 and demonstrated an inclination of approximately 3.7% in the same timeframe. However, on the raw materials side, the prices for Pet coke and coal remained volatile and showed a downward movement.
Furthermore, the reduction in natural gas supplies in Germany has resulted in a rise in the operational costs of Calcium Carbonate. As a result, the manufacturers' prices have risen. However, in the last few months, Germany has been investing to develop LNG infrastructure and secure energy supplies to avoid reliance on Russia. In addition, construction activities have also improved across the European region, and the procurement of Calcium Carbonate strengthened. Moreover, the US market has also demonstrated bullish sentiment amid the supply chain disruptions brought on by extreme weather conditions.
According to the pricing intelligence of ChemAnalyst, the overall trend of demand from the downstream construction industry is likely to remain positive going into January 2023. Better demand prospects will drive Calcium Carbonate market growth in the coming weeks. However, the volatility in energy prices is also anticipated to impact the price value chain of Calcium Carbonate and its derivatives.