Calcium Propionate Prices to Soar in US Market as Demand Outstrips Supply
Calcium Propionate Prices to Soar in US Market as Demand Outstrips Supply

Calcium Propionate Prices to Soar in US Market as Demand Outstrips Supply

  • 31-Jul-2023 3:23 PM
  • Journalist: Francis Stokes

Market participants in the Calcium Propionate industry will likely experience an optimistic market situation in August, following a sustained price decline in both the Chinese and US markets. The market has recently experienced a decline in prices, which can be attributed to various factors. These include an increase in supply from China, a decrease in demand from the US, and the ongoing conflict between Russia and Ukraine. However, these factors are expected to decrease in the coming months, leading to an increase in demand and a rise in prices. In the upcoming months, market participants can expect to experience a boost in their profitability. This will especially benefit those who have managed to secure long-term contracts at lower prices.

The price of Calcium Propionate, a food preservative used in a variety of products, is likely to increase in the United States in August 2023. This is due to a number of factors, including rising demand, supply constraints, and increased energy costs. Calcium Propionate is used to prevent bacterial growth in a wide range of foods, including bread, cheese, and baked goods. It is also used in animal feed and other industrial applications. The demand for calcium propionate has been rising in recent years due to the growing popularity of processed foods. In addition, the increasing use of Calcium Propionate in animal feed is also contributing to the rising demand.

The limited number of manufacturers constrains the supply of Calcium Propionate. The two largest producers of Calcium Propionate are BASF and Eastman Chemical. These companies have been struggling to keep up with demand for several reasons. First, there has been a surge in demand for Calcium Propionate in recent years as consumers have become more aware of the health risks associated with other food preservatives, such as BHA and BHT. Second, producing Calcium Propionate is a complex process requiring specialized equipment and expertise. Third, the cost of raw materials used to produce Calcium Propionate has increased in recent years. The production of Calcium Propionate is a complex process that requires Propionic Acid, which is a byproduct of the petroleum refining process. The global supply of raw Propionic Acid used to manufacture Calcium Propionate is currently limited, putting upward pressure on prices.

Moreover, the prices of raw material Propionic Acid increased, cost support was strengthened, and the rise in raw material prices boosted the Calcium Propionate market upward slightly. Downstream companies approached procurement with caution, showing limited enthusiasm and adopting a wait-and-see approach. They prioritized procurement based on immediate demand and refrained from actively seeking price inquiries. The manufacturer mainly issued preliminary orders, but there was not much inventory on-site, and they were reluctant to sell at low prices, resulting in a relatively stagnant supply and demand.

Meanwhile, Energy costs also contribute to the rising price of Calcium Propionate. The production of Calcium Propionate requires a significant amount of energy, and the recent increase in energy prices has put upward pressure on the cost of the product. As a result of these factors, the price of Calcium Propionate is expected to increase by 4-5% in August 2023. This increase is likely to have a ripple effect throughout the food industry as food manufacturers pass on the higher costs to consumers.

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