High demand for Calcium Carbonate fluctuating the downstream industries
High demand for Calcium Carbonate fluctuating the downstream industries

High demand for Calcium Carbonate fluctuating the downstream industries

  • 25-Mar-2022 5:26 PM
  • Journalist: Harold Finch

The International tension between Russia and Ukraine mainly impacted the prices and value supply chain of various commodities such as metals, petrochemicals, and even bulk fertilizers globally. Along with it, the supply chain of Calcium Carbonate has been impacted as well. The price of Calcium Carbonate has showcased an upward trajectory since the beginning of the year. Several factors backed this surge in prices, mainly supply disruption, rising raw material costs, and high demand from the downstream construction industry. In the construction and infrastructure industry, Calcium Carbonate is used as a building material, thus enduring direct pressure from it.

In China, the surging covid cases in February forced to adhere to the strict policy leading to soaring costs of market transportation, resulting in tensed demand and supply chain. Amidst it, downstream paper and construction are stable in the market post the Spring festival holidays. However, demand for Calcium Carbonate remains tight in India as cement companies ramp up volumes to meet their year-end target. The rising cost of raw materials and strong demand from the construction industry forced a surge in prices of Calcium Carbonate.

According to the Indian market brokers, Calcium Carbonate's downstream cement prices rose by 11% monthly until March 22, 2022, as the construction industry entered a season for high demand. In addition, the Indian administration’s road projects has gained pace. Whereas the US economy for Calcium Carbonate is still struggling with logistics issues and balanced supply and demand issue because of the shipping crisis.

As per ChemAnalyst, the global price of Calcium Carbonate will surge more rapidly because of solid demand against constraint supply and stability upstream. Along with this, warmer weather will also boost the peak season of the downstream construction industry.

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