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Strong demand and inadequate supply hampered the market for Calcium Hydroxide

Strong demand and inadequate supply hampered the market for Calcium Hydroxide

Strong demand and inadequate supply hampered the market for Calcium Hydroxide

  • 31-Mar-2022 6:53 PM
  • Journalist: Timothy Greene

The extended hostilities among Eastern European nations impacted the whole value supply chain of various inventories, primarily crude oil and energy, metals, and even some bulk chemicals and fertilizers. This upset in the supply chain provoked many inquiries in the market owing to inadequate supply, ushering to cost inflation. Among those, Calcium Hydroxide is also suffering from this stagflation. The overall price trajectory for Calcium Hydroxide witnessed an upward surge backed by solid cost pressure and robust downstream demand from key industries.

In the backdrop of volatility in the global energy market, increased thermal coal prices inflated the energy costs, increasing the prices of the Calcium Hydroxide value chain. The downstream solid demand from key industries, mainly water treatment and Pulp & Paper, concluded in price inflation. At the same time, persistent strong demand from other countries such as India, Hongkong, and Macau to export Calcium Hydroxide made the market even more healthy. However, the impact of Applying of Emission Trading System (ETS) has stabilized the market sentiments in the fronts of the construction industry for Calcium Hydroxide.

In India, Calcium Hydroxide prices surged more than 5 percent compared with the previous month. This soaring in costs is mainly due to an increase in the price of feedstock Calcium oxide in the domestic market. Whereas, increasing demand for agricultural products coupled with downstream food industries is growing with increasing population. The robust market demand and limited product availability hampered the market of Calcium Hydroxide in the country. Strong market demand from the steel industry encouraged the prices of feedstock Calcium Hydroxide. India, being an importer, had a minimal number of inventories and a demand-supply gap widened due to supply shortage, which enforced pressure on the producer to fulfil the requirements of the end-users.

As per ChemAnalyst, “Calcium Hydroxide prices are likely to rise on the back of strong demand and less availability. Calcium Hydroxide prices rose in March, owing to tight availability and robust demand of Calcium Hydroxide in the global market and a hike in the energy prices.”

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