For the Quarter Ending June 2021
Rebound in construction sector in North America, improved the demand for Calcium Carbonate during this quarter. Rapid vaccination drive and decline in COVID cases led to the improved demand for Calcium Carbonate from this segment. However, pharma segment also witnessed firm offtakes in the meantime. Therefore, in combined effect, prices of Calcium Carbonate increased effectively in the USA, and rose from USD 509/MT to USD 520/MT from mid-April till May. Later, in June, prices started declining, due to ample stock availability amidst the stagnating demand scenario in USA.
Recovering economy of China post decline in COVID cases, improved the demand for Calcium Carbonate from domestic construction sector. Downstream cement prices rose month-on-month, under the influence of booming construction activities. Therefore, a fair rise in prices of Calcium Carbonate was observed in the country. While in the Indian market, due to second wave of pandemic, consumption from construction segment remained dull, which reduced the overall demand for Calcium Carbonate. Later, in June, prices rebounded, under optimism of recovering economic activities, as new cases started declining effectively. Therefore, in India, after a steep fall in prices, Calcium Carbonate rebounded in June and settled at USD 165.05/MT for Industrial grade.
Prices of Calcium Carbonate remained influenced by global factors like rising freight and energy costs. Therefore, a fair rise in prices of Calcium Carbonate was observed in the European region. On the demand side, construction sector of Europe witnessed boom during this timeframe, and manufacturers were worried about the rapid escalation in prices of construction related raw materials including Calcium Carbonate. In addition, a major European manufacturers Omya increased its Calcium Carbonate prices for global market during this quarter, due to rise in global freight cost, energy cost and other factors.
For the Quarter Ending March 2021
Devastating winter storm across North America halted almost all the production activities in mid-February. Due to this winter storm several other activities like construction farming also got affected, while some industries like pharma had to keep working amidst increasing requirements for medicines. In line with this trend, demand for Calcium Carbonate from downstream cement sector also reduced however it witnessed improvement from pharma sector, which supported its prices. Prices for Calcium Carbonate rose from USD 485/MT (January 2021) to USD 495/MT (March 2021). In addition, Huber Engineering announced the acquisition of Nutri Granulation business from IMCD, which is a major producer of food grade Calcium Carbonate, deal is expected to be closed by 1st April.
AsianCalcium Carbonate market witnessed mixed sentiments under wavering demand supply fundamentals, which varied country by country. Where China had faced firm demand for Calcium Carbonate while maintaining ample supply to satisfy the demand, high demand supported the prices and led it go rise marginally by 1.7% during Q1 2021. On the other hand, India witnessed high demand for Calcium Carbonate from both cement and pharma sector which led to the rise in prices of construction grade Calcium Carbonate by 14.87% and pharma grade Calcium Carbonate by 14.98% during this period. Meanwhile, to rectify this price rise, Indian government reduced the import duty from 2.5% to zero from all grades of Calcium Carbonate, this decision was especially imposed to favour the steel sector of India.
Demand forCalcium Carbonate across Europe maintained its stagnant demand from downstream sectors like construction and pharma during Q1 2021. As the domestic supply was not sufficient enough to satisfy this demand, hence the prices projected an upward trend across different European countries. In Germany, FOB prices for Calcium Carbonate rose by 3.44% during Q1 2021 and settled at USD 150 per MT during March end.
For the Quarter Ending December 2020
Calcium Carbonate’s demand in Asia surged in Q4 2020 as various countries like China and India majorly focused on the development of pharmaceutical and infrastructure following the fears of Coronavirus in 2020. With revival of the infrastructure activities in India in the festive season in November, demand from paints, coatings, and adhesives witnessed a much-needed rebound. Thus, in Q4 of 2020, the price of calcium Carbonate settled at 320 USD/MT. With increase in industrial and civil activities, demand from paper industry also revived which further contributed to surging the prices of Calcium Carbonate across Southeast Asia.
Consistent uptick in demand for Calcium Carbonate from pharmaceutical, paper, and plastic industry has kept its market sentiments rich in Europe. The increased focus on green economy in Q4 following several government initiatives requires infrastructure investment in Europe which further pushed the demand for Calcium Carbonate in the regional market. Appreciable demand for Calcium Carbonate from downstream sectors has kept its pricing firm in Europe for Q4 2020. Uptick observed in the demand from steel and glass manufacturing sector also contributed in surging prices of Calcium Carbonate.
Prices of the Calcium Carbonate firmed in the quarter ending December following the rise in prices for feedstock Calcium. Thus, the prime factor supporting the rise in prices of prices of Calcium Carbonate in the Q4 of 2020 were the supply shortage of raw material. Amidst increasing focus on healthcare sector, the demand for Calcium Carbonate surged in the pharmaceutical industries which further contributed in giving a considerate push to its market fundamentals.