Mounting Energy Costs Propel Calcium Hydroxide Prices Upwards in Europe

Calcium Hydroxide prices have been gaining an upward momentum and substantially surged in the European region, backed by soaring energy costs. Increased activities in the construction sector for infrastructure development and the pulp and paper industries have also boosted the market sentiments toward Calcium Hydroxide.

As per the latest data, in Germany, the price discussions of Calcium Hydroxide have witnessed an increment of USD 43 per ton in June 2022 from the previous month’s prices. The European country is dependent on Russia for one-third of its natural gas supplies; the slashed energy supplies are retaliating to inflict damage on Europe for its sanctions on Russia. The supply-side energy concerns have pressurized the market sentiments of Calcium Hydroxide in Europe, pushing the manufacturing costs to soar further in July 2022.

On the other hand, an unprecedented surge has also been observed in France and Belgium, where prices have significantly upsurged by nearly 9% and 16% in June 2022, respectively, inflicting the market value of Calcium Hydroxide. Also, the global logistics constraints brought on by the pandemic in China and port blockades have severely impacted the price value chain of Calcium Hydroxide in recent months.

However, the curtailed supply of natural gas from Russia has provoked Europe to change its stance on fuel. The major economies of Europe, such as Germany, Austria, and the Netherlands, have turned to coal to avoid winter shortages. In addition, the declining demand from the US, the continued fallout from Russia’s invasion of Ukraine, and rising food and energy prices have negatively impacted the European nations’ s economies, seeding the fear of recessions among traders.

According to the pricing intelligence of ChemAnalyst, the price trends of Calcium Hydroxide will likely follow an upward trajectory in the forthcoming weeks. The steep rise in energy prices and active demand from downstream construction and pulp and paper industries will exert significant upward cost pressure on the price dynamics of Calcium Hydroxide in the European market.