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Constructive Downstream Demand Intensifies the Global Calcium Carbonate  Market Outlook

Constructive Downstream Demand Intensifies the Global Calcium Carbonate  Market Outlook

Constructive Downstream Demand Intensifies the Global Calcium Carbonate Market Outlook

  • 19-Aug-2022 4:45 PM
  • Journalist: Francis Stokes

The global construction industry has been tempered by soaring material costs, construction labor shortages, and persistent supply chain turmoil throughout the first two quarters of 2022. Various domestic and international factors have contributed to consistent inflation in the prices of construction raw materials, including Calcium Carbonate. The active inquiries from the downstream construction industry have reinforced the global market development of Calcium Carbonate.

In India, the price trend of Calcium Carbonate has significantly escalated by approximately 6% this week compared to the cost observed entering August 2022. The price for Calcium Carbonate Indl. Grade (GCC) has hovered around USD 82 per ton in the domestic market of India. The rising input costs for raw materials, energy, and logistics have provoked substantial upward cost pressure on the price realizations of Calcium Carbonate. However, despite a positive demand outlook, the downstream cement market players’ profit margins have been squeezed owing to high inflationary impacts and surged operational costs. One of the leading market players, Birla Corp, has stated that rising power, fuel, and freight costs were the reasons its profitability was affected in the second quarter of FY2022.

Furthermore, in the USA, the decline in energy prices has primarily reflected the sharp drop in the price of crude oil, an indication of easing global demand and a moderate increase in output. The market players have reported that new and export orders weakened by entering the mid-third quarter of 2022. However, price pressures faded as inventory accumulation climbed and supply chain pressure was relieved. However, US consumer sentiment has risen as inflationary pressure has improved. In addition, the market sources have informed that the accelerated oversupply of Calcium Carbonate has been enough to fulfill the inquiries from the downstream construction sector. The data shows that the price trends of Calcium Carbonate have demonstrated a surge of approximately USD 5 per ton on August 19th, compared to the costs observed in the first week of August 2022.

As per ChemAnalyst, on the construction front, the industrial market is expected to benefit from the additional supply, and cement manufacturers will likely increase their sales revenue and raise their prices, fuelling the market fundamentals of upstream Calcium Carbonate in the global region. Furthermore, robust demand from rural and urban housing segments is anticipated to strengthen the demand outlook for Calcium Carbonate in the forthcoming weeks.

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