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Global Calcium Powder Prices Decline Amidst Saturated Demand and Cautious Buyer Approach
Global Calcium Powder Prices Decline Amidst Saturated Demand and Cautious Buyer Approach

Global Calcium Powder Prices Decline Amidst Saturated Demand and Cautious Buyer Approach

  • 01-Jul-2024 4:10 PM
  • Journalist: Emilia Jackson

In June, the global prices of Calcium Powder experienced a significant decline globally due to several factors. The primary reason for this drop was that end users had sufficient stock of Calcium Powder, reducing the need for new purchases. As a result, buyers adopted a cautious approach, leading to fewer market transactions and collectively driving down the prices of Calcium Powder.

According to the latest data from the National Bureau of Statistics (NBS), China's manufacturing purchasing managers' index (PMI) stood at 49.5 in June 2024, unchanged from May. This PMI figure paints a gloomier picture of the world's second-biggest economy. Although China's economy is maintaining expansion from an output perspective, the momentum of continuous recovery still needs consolidation. Market demand remained insufficient, as indicated by the new orders index, which came in at 49.5 in June, a slight decline from May, which contributed to the decline in Calcium Powder prices.

A similar trajectory for Calcium Powder prices is observed in the Indian market. Despite the Indian manufacturing sector ending the June quarter on a stronger footing, demand from overseas markets eased compared to the prior month. The rise in shipping costs due to the Red Sea crisis has severely disrupted the purchasing strategies of many customers. This cautious approach has dampened demand, putting additional downward pressure on Calcium Powder prices. Additionally, persistent inflationary pressures have further dampened consumer sentiments, contributing to the decline in prices.

In the United States, consumer sentiment declined in June for the third consecutive month, driven by growing pessimism about personal finances and ongoing concerns about inflation. This trend further reinforces the downward trajectory of Calcium Powder prices. Additionally, in a largely anticipated move, the Federal Open Market Committee (FOMC) decided not to change the federal funds rate in June, maintaining its current target range between 5.25% and 5.50%. The new FOMC dot-plot projections indicate that only one interest rate cut is likely this year. The Federal Reserve is attempting to reduce inflation by raising interest rates without causing a recession. However, achieving a "soft landing" for the economy could be challenging, as higher interest rates increase borrowing costs for both companies and consumers, slowing economic activity and overall demand, which in turn puts downward pressure on Calcium Powder prices.

According to ChemAnalyst analysis, the prices of Calcium Powder are expected to continue declining in the coming months due to consistently weak demand from end-consumers. Market participants likely have stocked adequate inventories, which they are expected to offload at lower prices, thereby contributing to the downward trajectory of Calcium Powder prices.

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