For the Quarter Ending March 2024
North America
The North American Calcium Chloride market in Q1 2024 demonstrated stability with a nuanced upward trend in USA prices, influenced by factors such as downstream demand, supply dynamics, and feedstock costs, with the latest quarter-ending price for Calcium Chloride. This resulting in an overall stable to slightly bullish sentiment. Notably, the USA experienced marginal price increases, contrasting with the broader market trend. Demand from downstream industries, particularly in de-icing, remained robust despite the waning winter season, sustaining consistent inquiries.
Concurrently, the food and packaging sectors bolstered demand for Calcium Chloride. Supply chain disruptions were minimal, ensuring a moderate market availability, although reduced imports led to slightly diminished inventory levels. Escalating prices of feedstock soda ash drove up production costs, consequently impacting Calcium Chloride prices.
Q1 2024 Quarterly price analysis indicates a marginal increase compared to the same period last year, suggesting a positive trajectory, albeit with relatively stable quarter-on-quarter changes in 2024.
APAC
Throughout the first quarter of 2024, the pricing dynamics of Calcium Chloride in the APAC region have remained predominantly stable, marked by occasional fluctuations across various markets. This stability has been chiefly influenced by factors such as supply chain intricacies, demands from downstream sectors, and the cost dynamics of key feedstock like Soda ash. Generally, there has been a consistent supply to meet the needs of industries such as de-icing and food, supported by sustained economic conditions and increased purchasing capacity. However, demand patterns have varied, with some markets experiencing robust demand while others have encountered a slowdown in new orders. Notably, China has witnessed significant price adjustments, primarily driven by surplus inventories and associated discounts offered by sellers, compounded by declining prices of Soda ash. Despite these shifts, the de-icing industry has maintained strong demand, fostering ongoing interest from downstream sectors. As the snowfall season nears its end, a decrease in demand from the de-icing sector is anticipated, while other sectors like food and packaging are poised to witness heightened demand due to stable global economic conditions and subdued inflation.
Europe
During the first quarter of 2024, the European Calcium Chloride market experienced a 4% decrease in prices compared to the same period the previous year, influenced by various factors. the Calcium Chloride pricing environment in Q1 2024 exhibited a pessimistic trend, influenced by reduced demand from downstream sectors, surplus inventory, and the conclusion of the snowfall season.
Notably, reduced demand from downstream industries such as de-icing led to an overall decline in Calcium Chloride demand. Additionally, heightened inventory levels prompted sellers to offer discounts to clear excess stock, further driving prices down. This trend was particularly evident in the Netherlands, where significant price adjustments mirrored the broader European market. Here, decreased demand from the de-icing industry as the snowfall season neared its end, combined with surplus inventory levels, contributed to price decreases. Despite a seasonal decline in demand with the waning snowfall season, strong demand from industries like food helped maintain moderate overall market demand.
For the Quarter Ending December 2023
North America
In the North American region, the pricing of Calcium Chloride in the fourth quarter of 2023 was influenced by several factors. Firstly, there was a notable decrease of 2% in prices compared to the previous quarter. This decline can be attributed to ample inventory levels, leading to a decrease in pricing.
Additionally, the stability of natural gas prices contributed to steady production costs. In terms of demand, there was a moderate level of interest from downstream industries, particularly in the construction and de-icing sectors. The Purchasing Managers' Index (PMI) for the US market indicated expansion in the manufacturing sector, further supporting demand for Calcium Chloride. However, the overall demand remained low to moderate, leading to a subdued market. No major plant shutdowns were reported during this quarter.
Focusing on the USA, which experienced the most significant price changes, the price of Calcium Chloride (74-77% Tech Grade) DEL Texas decreased by 2% compared to the previous quarter. The price at the end of the quarter was USD 303/MT. In conclusion, the North American Calcium Chloride market in the fourth quarter of 2023 was characterized by a decline in prices due to high inventories and subdued demand. The USA experienced a decrease in prices during this period, with the construction and de-icing industries driving demand. However, the overall market remained relatively stable, with no major plant shutdowns reported.
APAC
In the APAC region, the fourth quarter of 2023 for Calcium Chloride witnessed various factors that influenced the market and pricing dynamics. Firstly, there was a moderate supply of Calcium Chloride in the region, accompanied by limited availability due to a decline in production rates within manufacturing units. This led to a slight shortage of product inventory, creating an imbalance between supply and demand. Despite these challenges, the supply chain operations remained smooth without any significant disruptions. Secondly, the demand for Calcium Chloride in the APAC region was moderate, with sectors like plastics, textiles, and pharmaceuticals showing relatively subdued demand. However, there was a slight improvement in downstream demand from the construction industry. Additionally, there was a faint increase in new orders from overseas consumer markets. Thirdly, in China, which experienced the most significant changes in pricing, the market sentiment for Calcium Chloride slightly declined in November. This was accompanied by a modest increase in demand, driven by growth in new orders and export sales. The overall supply chain and market conditions for Calcium Chloride in China remained relatively stable, with no significant issues observed. In terms of pricing, the latest quarter-ending price for Calcium Chloride (74-77% Tech Grade) FOB-Qingdao in China is USD 146/MT. This represents a -3% decrease compared to the previous quarter.
Europe
In the fourth quarter of 2023, the European market for Calcium Chloride experienced a challenging period. The top three factors that influenced the market and prices were weakened downstream demand, increased borrowing costs from the European Central Bank (ECB), and a decline in the feedstock Calcium Carbonate prices. These factors led to a bearish market situation, with moderate supply and low to moderate demand from industries such as de-icing, construction, oil and gas, water treatment, plastics, and pharmaceuticals. In terms of the Netherlands, which saw the most significant price changes, the price of Calcium Chloride decreased by 11% compared to the previous quarter. Additionally, there was a 5% decrease in price during the second half of the quarter compared to the first half. Despite these challenges, the quarter ended with a price of USD 230/MT of Calcium Chloride (74-77% Tech Grade) FD Rotterdam in the Netherlands. No plant shutdowns were reported during this period. Overall, the market faced downward pressure due to weakened demand and increased production costs, resulting in lower prices for Calcium Chloride.
South America
Overall, the South American market for Calcium Chloride in the fourth quarter of 2023 experienced a bearish trend, with prices decreasing in Brazil due to factors such as high inventory levels and reduced demand from downstream industries. These factors led to a bearish market situation, with prices of Calcium Chloride decreasing in the region. One notable event during this quarter was the absence of any reported plant shutdowns.
Among the countries in the South American region, Brazil witnessed the most significant changes in Calcium Chloride prices. The market in Brazil was influenced by factors such as decreased demand from the construction industry and low inventories. Additionally, the Purchasing Managers' Index (PMI) indicated a contraction in the manufacturing sector, further impacting the demand for Calcium Chloride. The prices of Calcium Chloride in Brazil decreased by 3% from the previous quarter, reflecting the overall bearish market trend.
Looking at the price trend within the quarter, there was a negative correlation between the first and second half of the quarter in Brazil, with prices decreasing by 3%. However, when compared to the same quarter in the previous year, there was a significant increase of 61% in prices. The quarter-ending price of Calcium Chloride (74-77% Tech Grade) CFR Santos Port in Brazil was USD 227/MT.
For the Quarter Ending September 2023
North America
The price of Calcium Chloride remained within a range during the third quarter of 2023. After a slight increase from July to August, the prices returned to the July values in September. This trend was influenced by weak demand from the international market, coupled with insufficient cost support from the feedstock Calcium Carbonate. Additionally, the persistently high interest rate, standing at 5.5%, continued to restrain the purchasing power of downstream industries and consumers. Given the extensive use of Calcium Chloride in the cement industry, there was subdued demand from the construction sector in this quarter. In August, the multifamily housing segment experienced a significant decline of 26.3% from July, while the single-family segment also decreased by 4.3% compared to July. Moreover, with adequate inventory levels in the market and lower downstream demand, inventories were offered at reduced rates as sellers sought to liquidate stock in the market. Furthermore, PMI value for the US market was below 50 throughout Q3 indicating contraction in manufacturing sector throughout Q3.
APAC
In the Chinese domestic market, the sentiment surrounding Calcium Chloride experienced a modest improvement during the first two months of Q3, marked by a slight uptick in demand conditions. Official data from the National Bureau of Statistics (NBS) revealed a mild increase in the manufacturing Purchasing Managers' Index (PMI), climbing from 49.20 in July to 51.80 in August. This indicates an expansion in the manufacturing sector, attributed to the growth in new orders and export sales. Market participants noted a slight shortage in product inventory, resulting in a noticeable imbalance between supply and demand. However, in September, there was a negative development as prices declined by 3.2%. Despite this, the overall supply chain operations remained smooth, with no significant issues such as port congestion or supply chain constraints observed in the region. This suggests relative stability in the supply chain and overall market conditions for Calcium Chloride in China. Notably, in September, the prices of Calcium Chloride exhibited positive development.
Europe
Throughout Q3, the prices of Calcium Carbonate have demonstrated a bearish trend in the market, primarily due to weaker downstream demand, notably from the construction industry, which experienced a decline throughout the quarter in the region. In August 2023, the Eurozone's manufacturing Purchasing Managers' Index (PMI) showed a slight increase to 43.5 from the previous month's 42.7, indicating a full year of consecutive contractions. The construction industry grappled with challenges as high-interest rates persisted at 4.5% since July, acting as a deterrent to investment and resulting in reduced demand for construction-related chemicals like Calcium Chloride. Despite sufficient material availability, output rates were slowing down. Importantly, there was a stable flow of imports during this quarter, with no major supply chain disruptions detected, leading to adequate inventory levels in the market thus it further led to subdued Calcium Carbonate market growth. Additionally, the cost support from feedstock Calcium Carbonate diminished during this period, contributing to reduced production costs in the Calcium Chloride manufacturing process.
For the Quarter Ending June 2023
North America
Calcium Chloride experienced mixed sentiment during the second quarter of 2023. In the US, in the early weeks of April, the prices of calcium chloride rose by 2.1% as crude oil prices moved from USD 74 to 79 by the first week of April. The demand from the downstream construction industry also improved as prices of Limestone also increased by 2%. The supply remained adequate to sustain both the domestic and international markets. In the months of May and June, the price of calcium chloride showed a bearish stance owing to slower demand in the downstream construction industry. The business sentiments were observed to be suppressed amid ongoing monetary distress as investors speculated another hike in interest rates by US Fed. The downstream de-icing industries reduce calcium chloride consumption as the summer progresses in the US. In terms of supply, the material availability was sufficient in the region as steady imports of the product from China and Mexico were ensured. Prices of Calcium Chloride in DEL Texas were settled at USD 315/MT in the month of June 2023.
APAC
Calcium Chloride experienced mixed sentiment during the second quarter of 2023. In the US, in the early weeks of April, the prices of calcium chloride rose by 1.2% as domestic coal prices moved from USD 138 to 139 by the first week of April. The demand from the downstream construction industry also improved as prices of Limestone also increased as PMI Construction: Business expectation improved from 63.7 to 64.0 in the month of April. The supply remained adequate to sustain both the domestic and international markets. In the months of May and June, the price of calcium chloride showed a bearish stance owing to declining demand in the downstream construction industry. The retailer inquiry revealed a high level of inventory stocks of calcium chloride due to warm weather in Northern China. In the Indian market, the price in the months of May and June showed a bearish stance due to the import of coal to stabilize energy prices as well as a decline in the demand from the construction industry due to the onset of monsoon and sowing season. In terms of supply, the material availability was sufficient to cater to the needs of the construction industry. Prices of Calcium Chloride FOB Qingdao were settled at USD 150/MT in the month of June 2023.
Europe
Calcium Chloride experienced mixed sentiment during the second quarter of 2023. In the Netherlands, in the early weeks of April, the prices of calcium chloride rose by 1.7% as the price of feedstock and gas provided cost support. The demand from the downstream construction industry reduced in the month of April. CBS index for construction was reduced by 2%. The supply remained adequate to sustain both the domestic and international markets. In the months of May and June, the price of calcium chloride showed a bearish stance owing to the negative cost support provided by Limestone and Energy. The business sentiments were observed to be suppressed amidst the ongoing economic slowdown and high inflationary pressures in Europe. The downstream de-icing industries reduced calcium chloride consumption as the summer progressed in Europe. In terms of supply, the material availability was sufficient in the region as steady imports of the product from China and the United States were ensured. Prices of Calcium Chloride FD Rotterdam were settled at USD 278/MT in the month of June 2023.
For the Quarter Ending March 2023
North America
During Q1 2023, the US market experienced a decline in the price of Calcium Chloride, which was attributed to weakened demand from downstream industries, such as the construction industry. The shortage of labor in the USA played a significant role in this price decline, as it had a direct impact on the construction sector, leading to a reduction in demand for construction products. In January, February, and March, the value of Calcium Chloride decreased by around 7%, 5%, and 3%, respectively. The decline in prices during the first two months of the quarter was primarily due to a decrease in feedstock Ammonia prices, which fell by 7% and 4% across the USA, further influencing price trends. Ultimately, the price of Calcium Chloride in the US market at the end of the quarter hovered around USD 320/MT.
APAC
In the first quarter of 2023, the Asian market saw a surge in the price of Calcium Chloride owing to the increased demand for the product in the region, despite a steady supply. In India, the product's price rose by approximately 16%, 14%, and 7.5%, respectively, over three months because of the continuously rising price of the feedstock Ammonia in the market. The value of Ammonia in the Indian market increased by around 35%, 17%, and 22%. Furthermore, the increased buying interest for the product in the global market impacted pricing dynamics during the quarter. Likewise, in other Asian countries like China, the price of Calcium Chloride also saw an increase of around 3% and 5% in February and March, respectively, due to a surge in demand from the construction sector. With the lifting of Covid restrictions and the Chinese New Year uncertainty in the country, the Chinese economy improved, and the construction sector also observed positive growth, further supporting the price trend for the product. However, in January, the price of the product in China declined by 3% due to the Chinese Lunar New Year uncertainty, with the market being closed for almost a week before and after the festival.
Europe
In Q1 of 2023, the European market experienced a drop in the demand for Calcium Chloride from the construction sector, despite the high supply in the region. This scenario led to an increase in the price of Calcium Chloride in the European market during Q1 of 2023. In the Netherlands, the price of Calcium Chloride (74-77% Tech Grade) FD Rotterdam declined by approximately 4%, 3.6%, and 3.7% in the first quarter of 2023, respectively, due to the decreased price of feedstock Calcium Carbonate. The price of Calcium Carbonate declined by approximately 8% and 7% in February and March. Moreover, high living costs and an increased inflation rate across Europe served as a secondary reasons for this downfall. The high inflation rate and cost of living resulted in reduced demand for the product, as businesses were compelled to increase their prices in response to the high cost of production. This, in turn, further diminished demand for the product.
