For the Quarter Ending March 2025
North America
In Q1 2025, the North American calcium hydroxide market experienced notable price fluctuations, influenced by dynamic construction sector activities and broader economic factors. January commenced with high prices, bolstered by increased demand from infrastructure projects and favorable weather conditions that accelerated construction activities.
However, February witnessed a slight dip in prices, attributed to a slowdown in new construction projects and cautious procurement strategies amid rising interest rates. This period of moderation reflected the market's sensitivity to economic indicators and construction sector performance.
March saw a resurgence in prices, driven by renewed construction activities and a rebound in infrastructure investments. The interplay between supply constraints and revitalized demand underscored the market's responsiveness to sectoral shifts.
Overall, Q1 2025 highlighted the calcium hydroxide market's volatility, closely tied to the construction industry's performance and economic conditions. Stakeholders should remain vigilant to these factors, as they continue to shape market dynamics and pricing trends.
Asia
The APAC Calcium Hydroxide market in Q1 2025 is characterized by a complex interplay of rising production costs driven by escalating energy prices and raw material constraints, notably Calcium Carbonate. Infrastructure development initiatives are bolstering demand, while seasonal maintenance shutdowns intermittently restrict supply, creating upward price pressures. Despite these factors, inventory levels remain generally ample, and cautious procurement amid economic uncertainties tempers aggressive price surges. Market sentiment reflects a cautiously optimistic outlook, with demand expected to strengthen gradually before potential softening in mid-year. In Malaysia, Calcium Hydroxide prices increased by 5.41% from Q4 2024 to Q1 2025, averaging USD 195/MT this quarter. The intra-quarter trend is distinctly bullish, with monthly prices rising steadily from January through March. This upward trajectory is primarily driven by higher energy costs and government-backed infrastructure projects stimulating demand. The market outlook remains positive near term, although selective purchasing and inventory considerations may moderate price acceleration.
Europe
The European Calcium Hydroxide market in Q1 2025 is characterized by a complex interplay of rising production costs driven by escalating energy prices and raw material scarcity, notably Calcium Carbonate. While infrastructure projects and seasonal maintenance shutdowns are expected to bolster demand and constrain supply respectively, consumer sentiment remains subdued, tempering domestic consumption. Inventory levels are generally ample, leading to selective purchasing behavior and moderate price fluctuations, with an anticipated rebound in demand as the quarter progresses. In the Netherlands, Calcium Hydroxide prices declined by 1.53% from Q4 2024 to Q1 2025, averaging USD 515/MT during the current quarter. Monthly prices exhibited a flat intra-quarter trend, reflecting balanced supply amid stable demand. Key drivers include rising energy costs and government infrastructure initiatives, offset by cautious procurement amid economic uncertainties. The market outlook remains cautiously stable with potential for modest upward pressure in the near term.
For the Quarter Ending December 2024
North America
Considering Q4 2024 as a whole, the Calcium Hydroxide market in North America, particulary USA experienced a predominantly downward price trend. While November showed some signs of modest improvement, the substantial weakness in December's residential real estate market and continued cement industry sluggishness overrode any positive impacts.
The US Calcium Hydroxidemarket experienced weak demand in October, reflecting a downturn in the manufacturing sector. This suggested weak construction activity and likely downward pressure on Calcium Hydroxide prices.
Calcium Hydroxide demand improved slightly in November, due to increased commercial construction, particularly government infrastructure projects. However, the cement industry remained sluggish, indicating persistent weakness in the overall construction sector. Housing starts and permits also declined, reinforcing low demand. This mixed picture, resulted in flat prices for both Calcium Hydroxide.
In December, the US construction sector faced seasonal slowdowns and broader economic headwinds. Residential real estate activity significantly decreased, with high mortgage rates and reduced buyer confidence. Mortgage demand plummeted by 21.9%, reflecting a substantial market slowdown. While overall construction spending was slightly up year-over-year ,the residential sector's decline and the continuing weakness in the cement industry indicated that Calcium Hydroxide faced significant downward pressure on prices in December. The cement production index also decreased, further supporting this inference.
APAC
In Q4 2024, the Calcium hydroxide market, particularly in China showed a volatile price trend. October saw rising calcium hydroxide prices. This was due to higher feedstock costs, limited supply, and strong steel demand from a recovering construction sector. This upward trend reversed sharply in November and December, with prices declining 0.8% and 3.3% respectively.
The downturn resulted from several factors. Weak post-holiday demand impacted the market. Manufacturers destocked, offering discounts. Sluggish demand and ample supply lowered operating rates. The weak construction sector, especially real estate, also added to the pricing pressure.
Despite some government-driven recovery in top-tier cities, high foreclosures and inventory issues in lower-tier cities persisted, dampening overall demand. Stagnant calcium carbonate costs further contributed to the price drop in December.
In nutshell, the fourth quarter of 2024 revealed a dynamic price pattern for calcium hydroxide in China. The quarter began with a period of price growth, primarily driven by strong demand and supply-side constraints. This initial upward trajectory, however, was short-lived. A significant shift occurred, marked by substantial price declines in the latter part of the quarter. This dramatic reversal underscored the market's vulnerability to shifts in economic conditions. The price fluctuations also highlighted the inherent volatility within China's construction sector, a key driver of demand for calcium hydroxide.
Europe
The European calcium hydroxide market, particularly Germany experienced a volatile Q4 2024. October saw price increases due to higher calcium oxide feedstock costs and limited supply, despite weak construction demand. Strong demand from sectors like steel production partially offset the impact of the construction downturn.
However, this upward trend was reversed in November and December, with prices falling 1.3% and 0.8% respectively. Several factors contributed to the price decline. Weak post-festive demand impacted end-use industries. Manufacturers actively destocked, offering discounts to clear inventory. Reduced operating rates reflected the ample supply and sluggish demand.
The persistently weak construction sector, impacted by broader economic and geopolitical uncertainties, further exacerbated the downward price pressure. Decreasing calcium carbonate costs also contributed to the price reduction in December.
In conclusion, while October showed price increases, the overall Q4 2024 trend for European calcium hydroxide was a net downward one, highlighting the market's sensitivity to economic conditions and the need for inventory management amidst weak demand.
For the Quarter Ending September 2024
North America
In Q3 2024, the pricing trend observed for Calcium Hydroxide in the North American market was mixed. The mixed pricing trend can be attributed to several factors, including the slowdown in the U.S. construction industry and the impact of higher mortgage rates on homebuilding and sales.
The decline in construction spending, particularly in the residential sector, has directly influenced the demand for calcium hydroxide, which is used in various construction applications such as concrete, mortar, and water treatment. The decrease in new construction projects, both single-family and multi-family, has led to a reduction in the demand for calcium hydroxide. Additionally, the surge in mortgage rates has made it more expensive for homebuyers to finance new homes, which has dampened demand for housing and, consequently, for construction materials like calcium hydroxide. The excess supply of homes on the market has also forced builders to delay new projects, further contributing to the decline in demand for calcium hydroxide.
The prolonged slowdown in the construction industry has had a significant impact on the demand for calcium hydroxide, as the decreasing construction activity has directly influenced the requirement for this material. The overall weakness in the construction sector has created a challenging environment for the calcium hydroxide market, with mixed pricing trends and subdued demand.
APAC
The Q3 2024 pricing landscape for Calcium Hydroxide in the APAC region was marked by a downward trajectory. This downturn was primarily driven by sluggish demand from key downstream industries like construction and paper. The construction and paper sectors, major consumers of Calcium Hydroxide, experienced a slowdown in demand, leading to reduced consumption and consequently, lower market prices. A sufficient supply of Calcium Hydroxide was available in the market, which, combined with reduced demand, put downward pressure on prices. Consistent production levels from manufacturers further contributed to the ample supply and downward price trend. China, in particular, witnessed the most substantial price changes, with a -4% decrease from the previous quarter. The quarter also saw a -2% price comparison between the first and second half, further indicating a declining trend. Disruptions, such as weather-related logistics interruptions and maintenance downtime, also impacted the market dynamics. The quarter-ending price for Calcium Hydroxide FOB Qingdao in China stood at USD 122/MT, underscoring the negative pricing environment prevalent in the market. The overall trend in the APAC region reflected a consistent decrease in Calcium Hydroxide prices, highlighting a challenging and bearish market sentiment.
Europe
In Q3 2024, the Europe region witnessed a decline in Calcium Hydroxide prices, with significant factors influencing market prices. The decreased demand from downstream industries, such as construction and paper, played a pivotal role in the pricing dynamics. Additionally, macroeconomic challenges, high interest rates, and weak manufacturing activities further contributed to the downward pressure on prices. The overall trend for Calcium Hydroxide in the Netherlands saw the most significant price changes, reflecting a challenging market environment. The quarter recorded a -1% decrease from the previous quarter, with a -2% price difference between the first and second half of Q3. Despite some disruption and plant shutdowns, the pricing environment has been predominantly negative. Ending the quarter at USD 526/MT of Calcium Hydroxide FD Rotterdam in the Netherlands, the quarter showcased a consistent decreasing sentiment in the market.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the Calcium Hydroxide market exhibited a mixed trend, shaped by stable upstream conditions and varied downstream demand. Upstream dynamics were characterized by stable supplies of Calcium Oxide, the primary raw material for Calcium Hydroxide. This stability provided a consistent cost basis for manufacturers and prevented significant price volatility.
On the other hand, downstream demand presented a more complex picture. The construction sector saw moderate demand, with residential and commercial construction activities in the US remaining steady but not experiencing substantial growth. This resulted in a balanced yet subdued demand for Calcium Hydroxide from the construction sector. Meanwhile, the paper industry displayed fluctuating demand. The packaging segment of the industry experienced growth due to increased e-commerce, while the demand for printing paper continued to decline because of digitalization, leading to an overall mixed demand scenario.
The US market for Calcium Hydroxide did not face significant pressure from imports, as domestic manufacturers were able to meet local demand adequately, contributing to market stability. The second, second quarter saw a balanced supply-demand situation. The lack of significant growth in key sectors like construction and the varied performance within the paper industry prevented substantial market expansion. Consequently, the Calcium Hydroxide market in Q2 2024 remained stable with moderate price fluctuations, reflecting broader economic conditions and industry-specific dynamics.
APAC
In Q2 2024, the pricing environment for Calcium Hydroxide in the APAC region has been marked negative, characterized by a persistent decline in market prices. Various factors have played a significant role in this downward trajectory. The primary driver has been subdued demand across several downstream industries, notably construction and paper, which have led to an accumulation of inventory and a consequent reduction in manufacturing activity. The global economic climate, marked by inflationary pressures and cautious spending, further exacerbated the situation, limiting procurement from end-use industries.
Focusing on China, the market experienced significant price fluctuations, with an evident trend towards decreasing prices. Seasonally, reduced construction activity post-Labour Day and raining season contributed to weakened demand. The market's response to these seasonal lulls was compounded by a general economic slowdown, affecting manufacturing outputs and new procurements.
Moreover, the quarter has been devoid of any major plant shutdowns or disruptions, which might have otherwise tightened supply and supported prices. Compared to the same quarter last year, the overall sentiment remains bearish, highlighting the significant impact of prolonged demand weaknesses and oversupply. The quarter closed with prices at USD 126/MT of Calcium Hydroxide FOB Qingdao. This consistent decline underscores a challenging pricing environment, with little optimism for immediate recovery in the near term.
Europe
In Q2 2024, the European Calcium Hydroxide market has shown a mixed trend in pricing. The quarter has been marked by a combination of supply constraints and moderate demand recovery from downstream industries such as construction and paper. Limited production activities in the preceding quarters, coupled with disruptions in key trade routes, have exacerbated the supply-side pressures. Furthermore, increased shipping costs due to longer routes to bypass the Red Sea and higher energy prices have also contributed to elevated production costs, thus pushing prices upward in the second half of Q2.
In the context of Germany, where the most significant price changes were observed, the market has been influenced by a combination of factors, including operational constraints among manufacturing firms. Despite a general slowdown in the construction sector, with the PMI indicating contraction, the price of Calcium Hydroxide has increased due to the low availability of finished goods and higher input costs. Seasonality has also played a role, with prices in the second half of the quarter being 2% higher than in the first half. The overall price trend has been positively influenced by the easing of inflationary pressures, which have bolstered manufacturing activities.
From the previous quarter in 2024, prices have recorded a slight decrease of 3%, reflecting residual market adjustments from earlier supply chain disruptions. The quarter concluded with a price of USD 495/MT for Calcium Hydroxide FD Hamburg, highlighting stable but upward-leaning market sentiments. Overall, despite mixed economic indicators, the pricing environment for Calcium Hydroxide in Europe, particularly in Germany, has been predominantly positive.
