European Calcium Hydroxide Prices Show Downturn Amidst Sluggish Construction Sector
- 20-Sep-2023 5:48 PM
- Journalist: Li Hua
Rotterdam, Netherlands: For the past few months, the prices of Calcium Hydroxide have been constantly declining across Europe. The deterioration in construction activities coupled with persistent inflationary pressure in Europe has affected Calcium Hydroxide prices. With reduced demand for construction materials, the need for Calcium Hydroxide, commonly used in cement and mortar, has dwindled, causing oversupply and pushing prices downward. This price decline has pressured manufacturers and suppliers, impacting their profitability. The construction sector's slow recovery is a key factor influencing the negative trend in Calcium Hydroxide prices across the European market.
The ChemAnalyst database has shown that the prices of Calcium Hydroxide dropped by approximately USD 15 per ton in August 2023 in the Netherlands. As per the market sources, global industrial production and containerized freight movements continued to be sluggish and lackluster since the beginning of the third quarter. According to data released by Statistics Netherlands, in July 2023, manufacturing production in the Netherlands contracted by 8.3% year-on-year, marking a further decline from the previously adjusted 7.2% decrease in the preceding month. In other European countries like Germany, France, and Belgium, a similar trend has been reflected as construction activities have remained moderate.
Another significant factor affecting production is the availability of an adequate workforce. A recent survey conducted by the European Commission revealed that approximately 30% of contractors in the EU have voiced concerns about this matter, particularly in countries such as Austria, France, and Germany. Few have returned from the skilled workforce laid down due to economic concerns, and the younger generations of workers entering the workforce have been less inclined to commit to construction careers. On the other hand, both the Mediterranean and North European hubs are operating smoothly, experiencing minimal disruption from adverse weather conditions and the usual summer season uptick in activity. The reduced workforce, often seen during this period, has been well-handled by terminals and teams, ensuring that performance levels across European hubs will be sustained in the upcoming months.
According to ChemAnalsyt, the pricing dynamics of Calcium Hydroxide are facing ongoing pressure due to subdued demand in the European market. Although production activities were temporarily halted during the recent holiday season, they have since resumed at optimized rates to stabilize the market. Despite these efforts, the overall demand fundamentals remain sluggish, which continues to impact Calcium Hydroxide prices in the region. Thus, Calcium Hydroxide's prices will likely remain bearish in the forthcoming weeks.