Sluggish Demand Weakens Calcium Carbonate Market in India
- 14-Jun-2022 3:47 PM
- Journalist: Jai Sen
New Delhi, India: The sluggish demand from the downstream construction sector has propelled the weak market sentiments for Calcium Carbonate. The volatile moves in the Calcium Carbonate market and uncertainties at the terminal end are backed by increasing production costs evolved from the ongoing Russia-Ukraine War. The induced volatility that emerged due to War and sanctions imposed on Russia by European Nations have caused severe supply chain disturbances for Coal imports in International Market and have worsened the situation In India for Power generation. Although to fulfill the rising demand from Power Plants amidst the ongoing summer seasons, the Indian Government has elevated the coal imports.
In India, the downstream companies are struggling with soaring energy prices and a workforce shortage due to the summer season. The prices of significant input materials such as Pet Coke and Coal have undergone a remarkable price rise in the global Market, inflicting the operational cost to climb. As a result, the market players are extremely cautious about passing on the high-cost pressures to the consumers witnessing the weak buying sentiments.
According to some market players, the prices of downstream cement have declined by 3% in the last month, further pressuring the market outlook for Calcium Carbonate. Last week, the shares of giant market players Shree Cement and Ultratech Cement fell to 3.4% and 1.8%, respectively. Although the cement dealers had anticipated that the demand would rise before the monsoon, the prices changed their projected path amidst the current dull demand from the construction sector.
As per ChemAnalyst, the prices of Calcium Carbonate are anticipated to decline or may be stable, seeing the unprecedented low demand for its downstream cement. However, in the forthcoming weeks, the traders are hoping for a revival in downstream cement, driven by requirements from the industrial sector.