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Calcium Silicate Prices Plunge as Demand Woes Hit Europe and China Markets
Calcium Silicate Prices Plunge as Demand Woes Hit Europe and China Markets

Calcium Silicate Prices Plunge as Demand Woes Hit Europe and China Markets

  • 05-Mar-2024 5:10 PM
  • Journalist: Rene Swann

Hamburg (Germany): In February 2024, there was a downturn in the Calcium Silicate market, marked by declines in both European and Asian markets due to bleak demand. In Europe, there was a decrease in inquiries for Calcium Silicate from downstream ceramics and construction sectors due to ongoing economic challenges impacting consumer confidence. Meanwhile, Chinese Calcium Silicate experienced a slight decline, attributed to reduced purchasing activities and persistently low demand in the construction sector mainly due to the Lunar New Year holidays this month. Consequently, Calcium Silicate prices in European countries such as Germany decreased by 3%, while Chinese Calcium Silicate declined by 2%.

During this period, the Calcium Silicate market in Europe experienced a downward price trajectory primarily due to reduced demand from downstream industries such as construction and ceramics.  The construction industry in Germany continued to face a shortage of demand, as evidenced by a consistent decline in fresh orders. Market players highlighted hesitancy in the market amid a backdrop of tight financial conditions, high prices, and economic uncertainty, while the weakness remained centered on the housing sector. Furthermore, the low cost of imported materials has led to ease in product cost in the regional market.  According to Euroconstruct, construction output is projected to fall below initial expectations, with no signs of recovery expected until 2025. Increased interest rates, the restriction of the financial market, the Ukraine crisis, as well as the continued issues with building material costs and availability, all factors collectively impacted Calcium Silicate costs.

Furthermore, throughout this month, the Calcium Silicate market faced challenges in China as the demand from the downstream industries remained subdued primarily due to the Lunar New Year holidays. The Calcium Silicate market has experienced fluctuations and a downward trend, with prices showing a decline this month. Following the Spring Festival, the East China region has seen relatively low temperatures, leading to a slow restart of construction activities. Despite some support from infrastructure projects, demand remains sluggish, resulting in a weak and deteriorating market condition. Moreover, the official manufacturing purchasing managers’ index (PMI), compiled by the National Bureau of Statistics (NBS), fell to 49.1 in February from 49.2 in January with a sizable drop in the output component, below the 50-mark separating growth from contraction.

As per ChemAnalyst's analysis, there is an anticipation of a surge in the Calcium Silicate market in both the Chinese and European regions in the forthcoming months. Post-holidays, the Chinese market is forecasted to rebound, potentially driven by the resumption of market activities and an upturn in demand from the construction sector. Meanwhile, in Europe, market prices may witness an uptick due to the rise in imported material costs amidst escalated freight rates. However, despite this, demand for Calcium Silicate from downstream industries in Europe is expected to remain subdued, particularly due to the anticipated sluggish growth in the housing sector.

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