For the Quarter Ending March 2023
In Q1 2023, the Calcium Formate market remains affected by the influence of adequate product inventories and lackluster demand from the downstream construction industries. Since Calcium Formate stocks were sufficiently available in the region, trading in the US slumped as weak market fundamentals and lower overseas trading adversely affected the market. As a result of limited purchasing of new stock, as well as decreasing feedstock Calcium carbonate, the price trend has continued to fall throughout the quarter. A fall in interest rates and a lack of buying appetite largely repressed the downstream industries with the revision in the price trend. In line with the requirements of the buyers, the end-user industry worked their plants cautiously as per the requirement of the end user.
This quarter, the demand fundamentals slumped in the Asia Pacific market with low purchasing activities and high product inventories. The calcium Formate market declined marginally, tracking softer trading and low purchasing activities. No firmer offers and bids were offered for the domestic and overseas markets, which resulted in a feeble price trend. In China, the price of Calcium Formate during Feb 2023 declined to USD 534/ton FOB Qingdao. The demand for Calcium Formate from the downstream construction industry continues to stay low, with no major turn in fortune even after the Lunar New Year holiday. Production rate among the major Calcium Formate production unit declined in fear of oversupplies.
Prompted by weak product demand and limited trading activities, the price of Calcium Formate declined this quarter with weak market fundamentals and lower bidding from Germany to the European and Asian markets. Demand for Calcium Formate from the downstream construction market fell as the market was already well supplied with the product availability. The rising supply of Calcium Formate with relaxation in demand for the fresh stock prompted in price decline in the European region. The assessment partially considered the lack of demand for March 2023 shipment cargoes to the overseas market. No firm indications were traded for cargoes arriving in this quarter amid adequate product supply.
For the Quarter Ending December 2022
In Q4 2022, the price of Calcium Formate in the US showcased a downward trend due to feeble market purchasing and limited product demand in the region. The demand for Calcium Formate from the downstream construction industry also slumped, which further supported the declining price trend. The price trends of Calcium Formate in the US domestic market remained on the lower side due to the bearish market sentiments, sufficient product availability, and limited exports to the South American region. Rising production rates among enterprises and oversupplies of products restricted the demand for new stock. The spot prices in the region declined throughout the quarter, and suppliers were purchasing the product on a need-to basis.
Asia Pacific region
This quarter, the price trend of Calcium Formate declined in the succeeding months due to a bearish market outlook and weak price dynamics. With limited exports of Calcium Formate from China to the Asian region, regional prices slumped this quarter. Major manufacturing units have cut their production rate to avoid stockpiling. The number of bids registered for Calcium Formate also declined due to declining demand forcing the producers to give discounts on their offers to clear their inventories. Prices show a downward trajectory with higher production run rates and high energy complexes. In Oct, the need for Calcium Formate from the downstream construction industry remains hampered, leaving ample space for further decline.
In Q4 2022, the price of Calcium Formate showcased a weak price trend and feeble trading dynamics. Stockpiling Calcium Formate inventory and oversupplies reduced European Calcium Formate cost. Germany's sentiment highlighted feeble demand and imbalanced sentiment. The feeble interest in Calcium Formate increased the product inventories. Downstream construction enterprises were operated moderately with sufficient stock and deterred demand from the end user. Slow market offtakes and limited product demand forced producers to decrease the cost. Spot and contract discussions have remained on the lower side, with declining production costs among the enterprises. Local producers of Calcium Formate in Germany had also reduced the prices for the domestic market with weak market sentiments.
For the Quarter Ending September 2022
In Q3 2022, the market of Calcium Formate ended on a mixed note, where prices declined in the first two consecutive months with a declining feedstock Calcium Carbide market. The subdued demand from the downstream construction sector and the substantial availability of products in the market have contracted the profit margins of the market players. However, in Sept, the prices gained a stance prompted by the potential impact of downtime due to the onset of the hurricane season in North America, which concerned the market players. Vessel traffic was halted. Port Tampa Bay and Seaport Manatee, which handles large quantities of several chemicals, have disrupted operations.
In the Asia Pacific market, the price of Calcium Formate declined in the succeeding months of the third quarter, with supply exceeding the demand. In China, the cost of Calcium Formate in Sept fell to USD 1123/ton FOB Qingdao. The market for Calcium Formate from downstream construction and adhesive industries is affected by sufficient supplies and limited demand from end users. Purchasers are hesitant to make enormous buys, and the overall slack market furnishes buyers with leverage to push for lower costs. The Ex-factory prices of feedstock Calcium Carbide in the Northwest region also fell with low purchasing esteem and weak market sentiments.
With rising energy and utility costs in the regional market, the Calcium Formate market faced a Northward trend in succeeding months. Upstream Natural Gas costs rose, surging the manufacturing costs of feedstock Calcium Carbide. Low water levels due to extreme heat waves and blockage by a damaged freighter have pressured the supply flow in the regional market. Escalating energy prices and the deteriorating economic outlook prompted the downstream market players to postpone or cancel orders, dampening the demand fundamentals of Calcium Formate. High purchasing activities and higher bidding for the new stocks resulted in a revision in the price trend for overseas suppliers.
In Q2 2022, the price of Calcium Formate slipped in each succeeding month due to weak feedstock Calcium carbide. The domestic US market for Calcium Formate was deterred and faced certain uncertainties. The substantial spike highly impacts the US market in global crude oil and derivatives prices, exacerbated by the significant uncertainty resulting from Russia’s war on Ukraine. The declined demand from the buyers and the limited import offers amidst limited demand have forced the prices to plunge in the US market slightly. The curtailing shipping activities and higher freight charges resulted in declining market dynamics. Also, the slowdown in the US economy has negatively impacted the buying sentiments of the terminal sector.
In the Asia Pacific region, the price of Calcium Formate remains tepid in Q2 2022 with stable operating downstream ventures and moderate demand. In June, the cost of Calcium Formate in India was USD 1526/ton Ex-Mumbai. Formic Acid prices decreased due to weak market sentiments and low purchasing activity in the feedstock. Sluggish demand for products was prompted by deterred trading environment and oscillations in energy values. Weaker crude oil futures have dampened naphtha and energy values. High inventories among the Indian ports and reduced imports in the region from China forced the downstream manufacturing units to revise their price dynamics.
In Q2 2022, the costs of Calcium Formate were on the upper end with further improved demand and a sound downstream market. Some Calcium Formate makers had considered overcharges due to higher energy costs and lack of container availability. Because of raw material shortage, the tight Calcium Formate market confronted massive pushback from the purchasers. Significant Calcium Formate makers had kept costs flooded in the face of oscillating feedstock Calcium and power cost with further improved exports. The rising international strain between Russia-Ukraine likewise upheld the motions in cost elements. Downstream demand improved from past quarters with more purchaser interest and productively performing businesses.