China Calcium Silicate Prices Rise 3.03% in July on Tighter Supply

Downstream demand for Calcium Silicate, particularly in ceiling tiles, boards and coatings, remained under pressure as July marked the beginning of the seasonal construction off-season. New commercial residential supply across 50 key Chinese cities declined 32.5% month on month and 25.5% year on year to approximately 6.76 million square meters. New-home transactions also fell 25.6% month on month and 4.8% year on year to 10.69 million square meters, while cumulative transaction area declined 10.9% year on year during January-July.

The weak property market reduced procurement interest among building-material manufacturers. Buyers remained cautious and largely purchased only for immediate requirements, keeping inventories lean and limiting speculative transactions. Although demand remained subdued, the lower availability of inexpensive material prevented a sharper decline in market offers. Traders increasingly reported that low-priced parcels were difficult to find, encouraging sellers to maintain higher asking levels as social inventories gradually declined.

Supply dynamics provided the main support for Calcium Silicate prices during July. Few Calcium Silicate plants, including Henan Fireramo Industrial Co., Ltd., entered maintenance or reduced operating rates, contributing to a decline in the industry's overall utilization and reducing market supply. Other facilities also remained under maintenance during the month, leading to lower production and declining inventories. Consequently, Calcium Silicate stocks tightened and traders became less willing to sell at discounted levels, particularly for prompt material.

Feedstock economics provided limited cost pressure. Silica prices declined 2.6% during July, while calcium carbonate prices also edged lower, keeping raw-material availability comfortable. However, these reductions were insufficient to offset the impact of lower product availability.

Calcium Silicate export demand provided only limited relief as weak global economic conditions and persistent inflation affected overseas purchasing. Geopolitical uncertainty related to the Middle East also continued to weigh on international trade sentiment. Buyers remained cautious toward large-volume commitments, while domestic producers focused on managing inventories and protecting margins amid uneven demand.

According to Chemanalysts data, Calcium Silicate prices likely to decline in coming months due to several reasons. Severe typhoons, heavy rainfall and storm activity across coastal China could disrupt construction activity and logistics, further weakening near-term consumption while also restricting supply movements. Calcium Silicate buyers are likely to maintain cautious procurement strategies amid uncertain downstream operating conditions. Meanwhile, weak global economic conditions and persistent inflation due to middle east crisis may continue weighing on export demand.