Category

Countries

Oversupply in early December led to a slump in the prices of Calcium Propionate in India

Oversupply in early December led to a slump in the prices of Calcium Propionate in India

  • 21-Jan-2022 2:42 PM
  • Journalist: Jai Sen

Due to the dramatic increase in the delta variant cases of the coronavirus in many states of India, fresh announcements have been made to contain the unprecedented outbreak, even though it is believed to be milder than the second wave of covid that caused havoc during the second wave. A spokesperson of World Health Organisation (WHO) warned that the Omicron cases are increasing around the globe at a rapid pace, and it is only a matter of time before it replaces Delta as the dominant global variant. This new covid strain, disrupted Indian economy, ongoing shortages, and slower consumer spending are unlikely to get better any time soon. The fresh restrictions across the country are likely to hamper the manufacturing and industrial activities; however, the affected sectors may bounce back sooner if the state succeeds in limiting the fresh wave of infections.

Omicron is escalating some of the existing challenges that food and beverage manufacturers have encountered over the course of the pandemic in the previous year. However, several F&B companies have already made moves to implement robust measures in their operations to curb the spread of the virus and found some innovative ways to overcome supply chain turbulence. Calcium Propionate is widely utilized as a preservative in the food and beverage industries due to its properties of preventing food items from getting contaminated.

As per ChemAnalyst, the prices of Calcium Propionate are consistently declining in the Indian domestic market due to the oversupply of the product in the month of December. During the month of November 2021, the demand for Calcium Propionate witnessed a significant rise which compelled the domestic buyers to overstock the product in their inventories. However, the demand later normalized in early December, which then resulted in the increased market competitiveness among the buyers forcing them to sell the product at low prices. Calcium Propionate Ex-Mumbai prices deescalated from USD 2142.84/MT to USD 2140.58/MT in the first two weeks of January 2022.

Related News