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Global Calcium Silicate Prices Plummet in August 2024 Amid Dwindling Demand and Supply Chain Issues
Global Calcium Silicate Prices Plummet in August 2024 Amid Dwindling Demand and Supply Chain Issues

Global Calcium Silicate Prices Plummet in August 2024 Amid Dwindling Demand and Supply Chain Issues

  • 04-Sep-2024 3:30 PM
  • Journalist: Kim Chul Son

In August 2024, the global Calcium Silicate market experienced a significant decline in prices, with notable downturns observed in both European and Asian markets. In Asia, particularly China, weak demand from the downstream construction industry, driven by a broader economic slowdown, led to market instability. Concurrently, the European market faced similar downward pressure due to the influx of low-cost imported materials and sluggish demand in the construction sector. The situation was further exacerbated by supply chain disruptions along key trade routes, ongoing geopolitical tensions, and congestion at major Asian ports. These factors contributed to a 6% drop in the price of Chinese Calcium Silicate FOB Qingdao, while German Calcium Silicate CFR Hamburg saw an even steeper decline of 11% this month.

The European Calcium Silicate market has witnessed a notable decline in prices, driven primarily by weakened demand from the downstream construction sector. The Eurozone's construction industry continues to face significant challenges, with August marking yet another month of declining housing activity and worsening employment conditions which has impacted demand for Calcium Silicate.  The influx of lower cost imported materials including Calcium Silicate from Asia has further pressured the market, as supply chains remain well-stocked amid shortened delivery times.  Further, market players remain skeptical about its ability to revive the struggling sector which might influence the Calcium Silicate demand in the European market. Moreover, in August 2024, congestion at several major container ports in Northern Europe has reportedly worsened, prompting some carriers to omit specific port calls in the region. Despite this, the congestion has not resulted in significant delays for shipments.   Thus, the combination of sluggish demand, persistent supply chain challenges, and market uncertainty contributed to an overall weakening of the market, as producers struggled to balance production with the reduced pace of consumption which has influenced price trajectory of Calcium Silicate.

Similarly, the Asian Calcium Silicate market continued its downward trend in August 2024, driven by sluggish demand in the construction sector and persistent supply challenges exacerbated by port congestion. In China, a major market in the region, the slowdown in factory activity has intensified economic strain, particularly amidst a prolonged property sector crisis. Downstream construction units primarily engaged in on-demand purchasing, with speculative market demand weakening and resulting in sluggish shipments. Although the monsoon season presented significant challenges, proactive inventory management helped mitigate their impact on demand. The market faced an oversupply situation, influenced by reduced production rates, steady consumption, expanding domestic production, and lower freight rates, all contributing to downward pressure on prices. By the end of August, congestion levels remained above normal at several East Asian hubs, but improved distribution of transshipment containers across more ports has led to more manageable wait times. These factors collectively contributed to the reduction in Calcium Silicate prices in the Asian market.

According to ChemAnalyst, the price trend for Calcium Silicate in September 2024 is expected to mirror the bearish pattern observed in August. The European market is projected to continue its downward trajectory due to persistently weak demand. In China, seasonal factors, including the impact of the monsoon season, are likely to affect the construction sector, causing fluctuations in Calcium Silicate demand. Additionally, ongoing port congestion and supply disturbances along key trade routes are anticipated to keep exerting pressure on price dynamics. Overall, the market is expected to remain challenging, with continued downward pressure on Calcium Silicate prices.

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