For the Quarter Ending June 2021
Calcium Hydroxide prices fluctuated in a narrow range this quarter, due to tepid demand and ample availability. Despite of tight supply activities in USA in effect of freezing weather of February 2021, prices of Calcium Hydroxide remained stable. Besides, demand remained effectively low from downstream users, due to which prices fluctuated in a narrow range. Therefore, FOB prices were assessed around USD 185/MT during the time period for 99% grade. However, CFR prices demonstrated more fluctuations than FOB, due to the global rise in freight and logistics costs, where a rise by around 3.8% was observed in CFR prices of Calcium Hydroxide within the quarter.
Overall Asian market experienced dull sentiments throughout the quarter, as the demand remained infirm with significant inventories level. In China, major players reported seasonal restocking after Chinese Lunar holidays, however buyers restrained to procure stocks amidst surplus inventories. In the meantime, Indian market was devastatingly hit by the second wave of pandemic, due to which the demand from downstream industries slumped demand in May casing a fall in its prices. Later, prices started climbing up in effect of decline in new cases and ease in movement restrictions in major states of India, and eventually prices reached USD 217.2/MT during June in India for 99% grade Calcium Hydroxide.
In Europe, the demand for Calcium Hydroxide was mainly driven by construction sector. During this quarter, regional prices of Calcium Hydroxide rose effectively, backed by several factors like rising production costs, freight and other logistical operations. In addition, ease in movement restrictions after fall in new pandemic cases and successful vaccination drives, bolstered the market sentiments and enhanced the overall demand for the product across the region.
For the Quarter Ending March 2021
Calcium Hydroxide market witnessed a firm demand from domestic construction and paper manufacturing industry during Q1 2021. As the supply fundamentals were already low from Q4 2020 to Q1 2021, the halted supply which occurred as a repercussion of the devastating winter storm in February further exacerbated this crisis. These conditions supported the prices and made the FOB Texas prices to rise by 9.09%, making them settle at USD 180 per MT during March.
Market fundamentals of Calcium Hydroxide across Asia varied country wise, during Q1 2021. While China faced low to moderate demand with ample stock availability, India faced consistently firm demand and fair availability of cargoes. Average prices of Calcium Hydroxide in China dwindled from USD 165.75/MT to USD 163/MT from January to March 2021. Though the prices marginally revived during Chinese lunar year due to shortage but afterwards came down and ended up to lower than January. Meanwhile in Indian market, average CFR prices for 99% Calcium Hydroxide rose by 6.22% in a consistent manner, in effect of high demand from construction and pulp & paper sector.
Europe faced lower availability of raw materials amidst high demand from pulp & paper and construction sector throughout the quarter. Trade route congestion across Asia and Europe and record high freight and container costs, exerted a further upward push to the prices of Calcium Hydroxide in European market. Unprecedented shortage of feedstock also impacted the downstream sectors like pulp and paper where manufacturing cost surged every week which led to a price rise on finished products.
For the Quarter Ending December 2020
In fair optimism of festive season, demand for Calcium Hydroxide increased in the Asian market during Q4 2020. In Indian market, supply was sufficient to satisfy the demand, although the export remained low due to COVID restrictions and the Ex-depot prices fairly rose to around USD 146.7 per tonne in December. Meanwhile during November, Indian chemicals manufacturer Meghmani Finechem limited announced expansion of its Calcium Hydroxide plant from 294,000 tonne/year to 400,000 tonne/year in India. This plant expansion was planned in effect of annual high demand for Calcium Hydroxide from different downstream sectors. The news of continuation of Antidumping Duty over Calcium Hydroxide exports from China and South Korea to India capped the traded volumes.
Demand for Calcium Hydroxide remained firm during Q4 2020. A major manufacturer of Calcium Hydroxide in the US revealed robust sales of derivative Calcium Carbonate during final quarter, and significant revenue growth on QoQ basis. The consumption of Calcium Hydroxide improved within the quarter as demand for its derivative chemicals rose amidst active restocking heard by the regional suppliers. Demand from the agriculture, paper and construction sector was seen improving month over month throughout the quarter.
In Q4 2020, the European market experienced an overall downtrend due to dampened industrial and domestic activities due to another wave of COVID 19 infections despite vaccine related optimism hitting the sales towards the end of the year. Demand for Calcium Hydroxide from the construction sector remained significantly low on y-o-y basis although market players report improved sales compared to prior quarter. Demand from the pulp and paper sector also acquired growth due to rise in paper manufacturing.