What caused the acceleration in prices of Calcium Formate in Asian market
- 01-Apr-2022 2:27 PM
- Journalist: Peter Schmidt
The Calcium Formate market was observed to be on the upper end as emerging construction and paper production demand further boosted the market with supply constraints across the globe. Feedstock Formaldehyde and Calcium hydroxide market was also strong on top of bullish energy values and low inventories among the primary producers. In China, the price of Calcium Carbonate was increased by USD 7.81/ton on 1st April. At the end of the first quarter of 2022, the price of Formic acid increased to USD 1116.58 with an increment of 65.12% compared with the first week of Jan 2022. Trading activities in the Chinese market remained thin due to port congestion and surging Covid cases. However, the domestic market remained strong with increasing demand from the end-user industries.
In India, the prices of Calcium Formate surged in this quarter with an increase in downstream construction industries. Higher coal prices for cement production and its reduced availability kept the construction industry market thin, squeezing profits and increasing production costs to fulfill the consumer’s requirements. However, feedstock Methanol prices remain muted due to cargo movement from Russia to Northeast and Southeast Asian countries. Indian Petrochemical market outlook was under pressure as the end of the financial year approached, with traders looking for a more precise price direction. Asia’s Petrochemical producers are cutting their production rates with surging tension between Russia-Ukraine affecting the market sentiments.
According to ChemAnalyst, “ the price of Calcium Formate will increase in the upcoming week with surging feedstock Formic acid and Calcium carbonate. Supply curtailment and emerging demand from the construction industries will keep the prices high. Port congestion in China due to accelerating Covid cases will restrict overseas trading, increasing the inventories at the port. However, the consumption of the product in the domestic market will result in a price hike. In India, it is expected that the price may get revised for Petrochemicals with an increase in imports from China with the start of the new financial year. “