For the Quarter Ending March 2024
North America
In the first quarter of 2024, the North American market for Calcium Hydroxide experienced a range of factors that influenced prices and market dynamics. Similar to other calcium-based products, the supply-demand balance for Calcium Hydroxide was affected by various industry-specific conditions.
The construction sector, particularly in the USA, remained a significant driver of demand for Calcium Hydroxide. The construction industry in the USA continued to grow, supported by increased construction spending and job creation. This growth led to a rise in inquiries and procurement of Calcium Hydroxide, contributing to overall demand in the market.
However, the market for Calcium Hydroxide also faced challenges related to supply disruptions of raw materials. These disruptions impacted production costs and supply chains, potentially affecting prices in the market. Despite these challenges, there were no reported plant shutdowns in the Calcium Hydroxide industry during this quarter. The combination of supply disruptions due to extreme weather conditions and shipping route disruptions, such as those in the Panama Canal and the Red Sea, led to increased freight costs and higher prices. The market stayed positive in Q1 2024, supported by strong orders from the construction and rising production expenses.
APAC
In Q1 2024, the pricing environment for Calcium Hydroxide in the APAC region has been relatively stable, with some fluctuations observed in specific countries. Overall, the market has experienced moderate to low demand from the downstream construction sector, which has influenced market prices. However, the Paper industries have shown active demand, supporting the upshift in price realizations. Limited production activities during the year-end low seasonal demand have led to higher prices, as manufacturers aim to maintain profitability despite reduced output.
China, in particular, has seen significant price changes in Q1 2024. Limited production rates and low seasonal demand have resulted in higher prices for Calcium Hydroxide. The market has witnessed a delicate balance between supply and demand, with limited availability outweighing lower demand. Ongoing safety inspections of coal mines have further tightened the supply of raw materials, contributing to price increments. The Red Sea crisis and disruptions in shipping routes have also impacted freight rates, adding to cost pressures.
Looking at the comparison between the first and second half of the quarter, prices have remained relatively stable, with minor fluctuations observed. Despite the challenging market conditions, the latest quarter-ending price for Calcium Hydroxide in China stands at USD 132/MT FOB Qingdao.
Europe
In Q1 2024, the pricing environment for Calcium Hydroxide in the European region has been volatile, with fluctuating prices observed across different countries. Overall, the market has experienced a mix of positive and negative factors that have influenced prices.
One significant factor that has impacted Calcium Hydroxide prices is the demand from the downstream construction sector. The construction industry has seen a decline in new orders and activity, leading to subdued demand for Calcium Hydroxide. This, coupled with economic uncertainties and high material costs, has put downward pressure on prices.
Another factor that has influenced prices is the availability of raw materials. Limited production activities during the year-end holidays have raised supply-side concerns, leading to reduced availability of Calcium Hydroxide. This has caused manufacturers to offer the product at premium prices to ensure profitability despite the low demand.
The market in Belgium has seen the maximum price changes, reflecting the challenges faced by manufacturers in maintaining profitability amidst reduced output. The latest quarter-ending price in Belgium was reported at USD 461/MT of Calcium Hydroxide FOB Antwerp.
For the Quarter Ending December 2023
North America
During the fourth quarter of 2023, the pricing dynamics of Calcium Hydroxide in the USA were shaped by several factors. Initially, the market saw a decrease in demand from industries downstream, such as construction and paper, resulting in a decline in both inquiries and spot transactions. This drop was mainly due to a slowdown in new construction projects and the impact of higher interest rates on the purchasing power of these sectors.
Furthermore, the operational rates of Calcium Hydroxide manufacturing firms remained moderate, with some companies conducting planned maintenance to manage their inventory levels. Despite lower production levels, there was enough Calcium Hydroxide available to satisfy market demand. Additionally, the Federal Reserve's tightening policies and consequent inflationary pressures contributed to a reduction in output and orders for Calcium Hydroxide.
In December, the prices plummeted and were influenced by the holiday season and reduced trade activities, prompting manufacturers to release their inventories at lower prices to safeguard their profit margins. The weakening housing projects, coupled with the impact of inflation and interest rate hikes, further contributed to the downward trend in Calcium Hydroxide prices.
APAC
In Q4 2023, the prices of Calcium Hydroxide in the domestic market of China experienced significant fluctuations. Initially, the prices were on the higher end due to limited production activities during the Golden Week Holidays, which led to reduced availability of finished stocks. To maintain profitability, manufacturers raised their quotations, supported by increased costs of upstream Calcium Oxide. However, in November, the price of Calcium Hydroxide plummeted as weak demand from the downstream construction sector dominated market sentiments, leading to a bearish trend. National real estate development investment from January to October had declined by 9.3%, reflecting the subdued demand. The market dynamics shifted again in December, with Calcium Hydroxide prices gaining upward momentum despite sluggish demand from construction. The low production rate during the year-end resulted in price increments, driven by reduced output creating scarcity in the market and impacting supply dynamics. According to the National Bureau of Statistics, China's manufacturing activity contracted for the third consecutive month in December. Thus, Calcium Hydroxide FOB Qingdao prices were settled at USD 130 per ton in December.
Europe
In the fourth quarter of 2023, the pricing of Calcium Hydroxide in Europe was influenced by several factors. Firstly, the market experienced a decline in demand from the downstream construction and paper industries, leading to lower inquiries and spot transactions. This was primarily due to a slowdown in new construction projects and the impact of elevated interest rates on the purchasing power of these industries. Additionally, the European Central Bank's tightening measures and the resulting inflationary pressures contributed to reduced output and decreased orders for Calcium Hydroxide. Furthermore, the operating rates of Calcium Hydroxide manufacturing firms remained moderate, with some companies carrying out scheduled maintenance to manage inventory levels. Despite lower production levels, the availability of Calcium Hydroxide was sufficient to meet the demand from the market. However, the limited supply and reduced operating rates led to stable supply-side conditions with no major supply chain bottlenecks. Belgium experienced a decline in Calcium Hydroxide prices during the fourth quarter. The European holiday season and reduced trade activities led to manufacturers releasing their inventories at lower prices to protect their profit margins. The weakening housing projects and the impact of inflation and interest rate hikes further contributed to the decline in prices. The quarter-ending price for Calcium Hydroxide FOB Antwerp in Belgium was USD 487/MT.
For the Quarter Ending September 2023
North America
The prices of Calcium Hydroxide have demonstrated mixed market sentiments in the US market. In the first half of Q3, the Calcium Hydroxide prices remained bearish in the wake of limited inquiries from the downstream construction sector. Foreseeing the drop in procurement volumes, the manufacturers have slashed their offered prices. The market participants have reported that inventories were sufficient and could cater to the terminal demand. The new orders from the Paper industries were limited, and the market operated at low levels. On the upstream front, the Calcium Oxide market was also oversupplied which has resulted in price cuts for end-use industries. In addition, Inflation slowed to 3.3% in July due to the Federal Reserve's tighter monetary policies, alleviating the pressure from the purchasing sentiments of end-use industries. The data from the Federal Reserve demonstrate that In July 2023, industrial production in the United States declined by 0.23 percent compared to the same month in the previous year. Furthermore, towards the end of the third quarter, the demand from the downstream construction industries has improved, which has led to an escalation in the price realizations of Calcium Hydroxide.
APAC
In the domestic market of China, the decline in demand from the downstream construction sector has exerted downward pressure on the price realizations of Calcium Hydroxide in the first half of Q3 2023. Moreover, the slowdown in international procurement due to inflationary pressures and stringent monetary policies has contributed to hindering the Calcium Hydroxide market's growth. Information from the General Administration of Customs stated that China's overall exports, encompassing Calcium Hydroxide, contracted by 14.5 percent in July compared to the prior year. The production facilities downstream have operated at reduced capacities due to the presence of ample finished goods. Manufacturers have exercised caution due to the high levels of inventory, driven by the subdued economic conditions that have persisted in the Chinese market. In addition, the downstream Paper Industries have transitioned into the industry's off-season, resulting in insufficient momentum in Calcium Hydroxide market demand. In September, the prices of Calcium Hydroxide have surged after having shown a bearish trend. According to market sources, the improvement in weather conditions within the domestic region has led to an enhancement in construction activities. Additionally, the rising costs of raw materials such as coal and clinker have contributed to the upward movement in the prices of Calcium Hydroxide. Thus, Calcium Hydroxide FOB Qingdao prices concluded at USD 126 per ton in Q3-end.
Europe
Throughout the third quarter of 2023, the prices of Calcium Hydroxide have remained on the lower end in the domestic market of France. The reduction in inquiries from the downstream Construction sector has driven the downtrend observed in the price realizations of Calcium Hydroxide. This shift in demand-supply dynamics has created an oversupply situation in the market. Manufacturing activity in the eurozone experienced its sharpest contraction since the COVID pandemic took hold worldwide. Additionally, lower TTF natural gas prices have further led to an ease in the manufacturing cost of Calcium Hydroxide, leading to a downward trend in Calcium Hydroxide prices. Moreover, the manufacturers have been contending with elevated interest rates due to the impact of inflationary pressures, which has compelled them to reduce their production volumes. With weak manufacturing across the nation, the manufacturing purchasing manager index has demonstrated contraction. Furthermore, The freight charges have also remained at low levels and the supply chain has witnessed no major bottlenecks. The ChemAnalyst database has shown that Calcium Hydroxide FD Marseille prices were settled at USD 501 per ton in September.
For the Quarter Ending June 2023
North America
The prices of Calcium Hydroxide have witnessed volatile market sentiments in the US markets. The construction market has been observed in dire straits, constraining the market fundamentals of key input required, including Calcium Hydroxide. The availability of finished stocks was also sufficient as the demand from the downstream construction and Paper industries n the input energy front. In mid-June, the Natural Gas prices soared as the inventories rose only +84 Bcf, well below expectations of +94 Bcf. However, the prices are still on the lower end due to adequate inventory levels and a weak demand outlook. Further towards the late Q2, The downstream production facilities have been operated at reduced rates as there was already ample availability of the finished goods. The manufacturers were cautious about the high inventory levels, as the tepid economic conditions across the Western market have not subsided. Furthermore, weak manufacturing across the nation has led to a contraction in Purchasing Manager Index as it fell to 46.0 in June from 46.9 in May. The container availability at US Ports was also sufficient, and the movement of finished goods was unimpeded. According to Logistics Performace Index Report 2023, published by World Bank, the container turnaround times in the USA is around 1.5 days.
APAC
The decline in procurement from the downstream construction industries and paper industries has prompted the price realizations of Calcium Hydroxide to sustain their downward trajectory throughout the second quarter of 2023 in China. The inquiries from the Western market have also remained subdued, pressured by high inflationary pressure and volatile energy costs. As per the market participants, despite increased production following the lifting of the COVID restriction, demand from the downstream paper industry didn't reciprocate on a broader level. As a result of elevated stocks, the manufacturers have had to revise their quotations for the swift release of existing inventories. The United States and Europe face diminished demand due to increasing interest rates and inflation, and China has grappled with a significant drop in prices as its factories receive reduced payments for their goods from major international markets. Thus, the weak demand from the Western markets has tampered with the market momentum, inflicting the exports from China to decline by 7.5% in May on a y-o-y basis. The data from the National Bureau of Statistics demonstrated that with the reduction in production levels, the manufacturing purchasing manager index has settled in the contraction zone (below 50 points) throughout Q2.
Europe
In the Dutch market, the prices of Calcium Hydroxide have demonstrated mixed market sentiments. The production reductions the European market participants implemented in the wake of the energy price spike in early Q1 have led to the limited availability of Calcium Hydroxide stocks. However, In early Q2, manufacturing firms extended their workforce to account for rising production levels. On the supply side, the freight charges have remained at the lower end, and the supply chain has functioned normally. However, towards the second half of Q2, the inquiries from the downstream Construction and Paper industries didn't improve much. Thus, manufacturers refrained from any price developments. The TTF natural gas prices have also fallen to a record low of Euro 31.23/Mw-hr, decreasing the manufacturing costs of several bulk chemicals, including Calcium Hydroxide. However, despite lower energy prices, the inflationary pressures have increased and imposed downside risks to the price realizations of Calcium Hydroxide among the manufacturers. On the input energy front, Despite a drop in TTF Natural gas prices, the inflation rose to 6.1 percent in May, up from 5.2 percent in April. Consequently, Calcium Hydroxide FD Rotterdam prices were settled at USD 555 per ton in June.
For the Quarter Ending March 2023
North America
The prices of Calcium Hydroxide have demonstrated mixed market sentiments in the US market. At the start of the first quarter, the demand from the downstream paper and construction industries did not improve much, pressuring the market fundamentals of Calcium Hydroxide in the domestic region. The cost support from input energy materials was also limited as WTI Crude Oil prices remained on the lower edge throughout the first quarter. Furthermore, the market transactions were relatively slower than expected. The bankruptcy of two major banks based in the USA has further seeded the financial sector worries, impacting the economic conditions in the USA. Overall, the inventory of Calcium Hydroxide was sufficient, and the freight charges were relatively low, as reported by market participants in late Q1.
APAC
Throughout the first quarter of 2023, the prices of Calcium Hydroxide have remained on the upper end. The spring festival holidays have caused production activities to halt in January, leading to limited availability of the finished goods for the downstream paper and construction industries. However, after the rollback of COVID restrictions, manufacturing activities were boosted, and the purchasing manager index has escalated above 50 points. The release of inventories has expanded with active procurement from domestic paper and other end-use industries. However, the external demand from European countries remained modest, and exports remained lackluster. No supply-chain constraints were observed as logistics were restored. Consequently, Calcium Hydroxide FOB Qingdao prices were settled at USD 140 per ton in March
Europe
At the start of Q1, the prices of Calcium Hydroxide inched higher as the high energy costs challenged the production costs of Calcium Hydroxide across the German market. The manufacturers have opted for production cuts to avoid stockpiling the product. The build-up of high-cost inventories amid the limited procurement from the downstream paper and construction industries has curtailed the profit margins of the manufacturing firms. Furthermore, the interest rate hikes and tight monetary condition to combat the spiraling inflation has further imposed risks to the price realizations of Calcium Hydroxide. In addition, the increased wage demand has further fumed the tight labor conditions in the domestic region. Therefore, considering the aforementioned reasons, Calcium Hydroxide FD Hamburg prices were settled at USD 525 per ton at Q1-end.
For the Quarter Ending December 2022
North America
In the US market, the tight monetary policies to contain the rising interest rates have affected the market sentiments of manufacturing firms. The volatile energy costs and a downturn in procurement from the end-use industries have led to fluctuations in Calcium Hydroxide prices in the fourth quarter of 2022. The market participants have reported that most of the downstream purchases were based on a need-on-demand basis. The price pressures have been eased, and the US economy has shown signs of slowing growth rates and easing inflation. Furthermore, industrial production also fell in December, and the freight charges have also been observed to be lower. The supply pressure has been eased, and the Calcium Hydroxide market remained in negative territory.
APAC
In the fourth quarter of 2022, the prices of Calcium Hydroxide have demonstrated mixed market sentiments. Sluggish procurement from the construction and paper and pulp industries has hampered the market growth of Calcium Hydroxide in the first half. The impact of stringent Covid restrictions and the low demand season have weighed on market sentiments, and manufacturing activities have remained on the lower end. The market participants have reported that the decline in freight charges and ease in raw material costs has supported the southward trend of Calcium Hydroxide in China. However, manufacturing activities have gained momentum after the covid easing restrictions, and Calcium Hydroxide prices improved in December. Prices of Calcium Hydroxide FOB Qingdao were settled at USD 130 per ton at the Q4 end.
Europe
Elevated production costs brought on by limited supplies of natural gas have impacted the pricing dynamics of Calcium Hydroxide. The market transactions have operated at low levels as the inflationary pressures have impacted the downstream demand. The rise in TTF natural gas has led to production cuts across the nation. On the demand side, the offtakes from the downstream construction and other end-use industries were relatively weak and did not contribute much to the market growth of Calcium Hydroxide. However, the prices of natural gas started to fall in the second half of 2022, but it was high enough to pressure the profit margins of manufacturing firms. The ChemAnalyst database shows that the prices of Calcium Hydroxide FD Hamburg hovered around USD 485 per ton in December.
For the Quarter Ending September 2022
North America
In the third Quarter of 2022, Calcium Hydroxide prices have demonstrated mixed market sentiments. The reduced demand from the downstream construction and paper and pulp industries has pressured the manufacturers' market fundamentals of Calcium Hydroxide. In September, the manufacturing activities in the US market has subdued due to deterred purchasing power of the terminal consumer. Furthermore, the fluctuating energy values have further prompted the manufacturing costs of Calcium Hydroxide to remain volatile. Moreover, the port congestion at US Gulf Coast has imbalanced the supply fundamentals and led to a shortage of the material. To combat the raging inflation, the US Federal Reserve has hiked the interest rates witnessing the economic slowdown in the North-Americal region.
Asia-Pacific
The Calcium Hydroxide prices have demonstrated a downward trajectory in the domestic region of China. The decline in new orders from downstream construction and paper and pulp industries has impeded the market growth of Calcium Hydroxide. The manufacturing activities have been crippled due to power rationing brought on by intensive heat waves in mid-Q3. In September, The market players reported that downstream paper mills were shut down for maintenance, which has delayed the sales and production pressure from upstream Calcium Hydroxide. In addition, the rising exchange value of the US dollar has pressured the trade activities of Calcium Hydroxide among manufacturers. The demand from the downstream construction sector was also inadequate to raise the quotations. Thus, Calcium Hydroxide FOB Qingdao prices averaged USD 155 per ton at the end of the third quarter.
Europe
The Calcium Hydroxide prices remained on an uptrend in the domestic market of Germany throughout the third quarter of 2022. The burgeoning energy costs brought on by macroeconomic challenges have pressured downstream construction industries' manufacturing capacities. The energy-intensive paper and pulp sector have undergone production cuts witnessing the curtailed supply of Natural Gas in the region. The inflation reached 10% in September and weakened the demand fundamentals of the terminal consumers. In the mid-Q3, the low water levels in River Rhine disrupted trade activities across the European region. The rapid build-up of inventories has imposed a downside risk to the fresh production of Calcium Hydroxide in the area. The high energy costs have curtailed the profit margins of the market players. Thus, Calcium Hydroxide FD Hamburg prices were settled at USD 470 per ton at Q3-end.
For the Quarter Ending June 2022
North America
Calcium Hydroxide prices witnessed bullish sentiments in the second quarter of 2022 in the North American Region. The active demand from the downstream construction and automation sectors has sparked market sentiments toward Calcium Hydroxide in the regional market. Additionally, the impact of global supply chain shortages brought by Russia's invasion of Ukraine has impeded trade activities and has substantially escalated natural gas prices, further inflicting the manufacturing costs of Calcium Hydroxide. Furthermore, the workforce shortages and improvement in demand from water treatment plants have also prompted enough cost pressure on the price realizations of Calcium Hydroxide and a positive market outlook in Q2.
APAC
During the second quarter of 2022, the price of Calcium Hydroxide demonstrated mixed sentiments in the Asia-Pacific Region. In India, prices surged at the start of Q2 amid solid demand from the downstream paper and pulp industries. The global shortages of significant input materials, the Russia-Ukraine war, and the lockdown in Shanghai, which has almost stretched the supply chains, have fueled the market growth of Calcium Hydroxide in the domestic region. However, the prices declined in the second half of Q2 due to uncertainties in terminal demand, dwindling the market sentiments toward Calcium Hydroxide. Furthermore, in China, the downward pressure from the construction sector and squeezed supply chain have prompted the price trends of Calcium Hydroxide to follow a bearish trend.
Europe
In Germany, the price trends of Calcium Hydroxide have observed mixed sentiments in the domestic market. The prices surged in the first half amid high input costs, but subdued demand from the downstream construction sector provoked bearish market sentiments for Calcium Hydroxide in mid-Q2. Furthermore, in June, the exorbitant energy prices, robust demand, and healthy market sentiments from construction, pulp and paper, and several other key industries have a cumulative effect on the price trends of Calcium Hydroxide in the regional market of Germany. The reduction in gas supplies from Russia after the sanctions imposed by the US and EU nations amidst its invasion of Ukraine has exerted enough pressure on the manufacturing costs of Calcium Hydroxide. Also, the supply side concerns released by Russia's invasion of Ukraine have resulted in limited availability of upstream Calcium Oxide, propelling the Calcium Hydroxide prices.
For the Quarter Ending March 2022
North America
In North America, Calcium Hydroxide showcased an increasing market dynamic due to ongoing conflict between Eastern European nations. Moreover, the sanctions imposed on Russia by western countries have caused crude oil prices to soar; as a result, crude oil prices touched the three-digit mark. However, the demand from the downstream water treatment and pulp and paper industry remained firm, keeping the offtakes of Calcium Hydroxide on the higher side during the first quarter of 2022. Calcium Hydroxide prices in North America surged by nearly 4% in the USA across the quarter.
Asia Pacific
During the first quarter of 2022, Calcium Hydroxide prices witnessed soaring market sentiments owing to increased feedstock costs due to the exiting volatility in the energy market and surging coal prices. Besides, the persistent demand from the key industries, primarily the pulps and paper industry and water treatment industry, kept the prices of Calcium Hydroxide bullish. With the increasing metals prices, the Calcium Hydroxide prices in India increased more than 5% during the first quarter. Additionally, the congestion at the ports in China exceeded more than 400%, creating port traffic. As a ripple effect, the prices of Calcium Hydroxide for FOB Qingdao and CFR Kolkata were assessed at USD 240 per tonne and USD 233 per tonne, respectively.
Europe
In Europe, Calcium Hydroxide prices showcased a slightly increasing trend owing to rising feedstock Calcium Oxide prices and soaring crude and energy prices amid ongoing hostility between Russia and Ukraine. France primarily imports nearly 7% of global Calcium Hydroxide primarily from the United Kingdom, Spain, and Belgium. As the UK is already grappling with surplus charges on its crude oil and natural gas, the UK reduced its export to France. The sanctions on Russia from the Western nations resulted in port congestion and higher freight charges, even in France. The demand for Calcium Hydroxide remained stable. As a ripple effect, the price of Calcium Hydroxide for FD Marseilles (France) settled at USD 340/MT during the first quarter of 2022.
For the Quarter Ending December 2021
North America
In the Q4 of 2021, the market sentiments for Calcium Hydroxide in the North American region remained suppressed throughout the quarter, amidst the improvement in the supply outlook in the domestic market. These market sentiments were caused by the improved production rates at the manufacturing facilities in the USA post-hurricane season. Whereas, the cost support from the upstream further suppressed the production cost of Calcium Hydroxide in the US domestic market. As a ripple effect, the offers for Calcium Hydroxide have observed a persistent downtrend throughout the fourth quarter of 2021.
Asia Pacific
During the fourth quarter of 2021, the Asia Calcium Hydroxide market eased after soaring to an all-time high. The high charges and limited availability of freight vessels in the region imposed excess cost support in the exported volumes and delayed deliveries against the robust demand from the downstream sector. Whereas, the persistent efforts made by the Chinese authorities to curb the power rationing improved the operational loads in the Chinese domestic market. Whereas in India, the imports were delayed amidst the delayed deliveries amidst the restricted availability of freight vessels, although their offers were eased in the second half of the quarter. Therefore, the CFR Kolkata was assessed at USD 92 per tonne, in December.
Europe
In the fourth quarter of 2021, the sentiments for Calcium Hydroxide in the European market remained strengthened throughout the fourth quarter of 2021. This market movement for Calcium Hydroxide was attributed to the ongoing energy crisis in Europe that led to the curtailed production rates at the production facilities coupled with the hindered import from the overseas market. In response, the prices for mining metals and chemicals were reduced in international prices. Therefore, the prices for Calcium Hydroxide remained buoyed in the first half and eased in the second half of the fourth quarter of 2021 against the strengthened demand from the downstream industry.
For the Quarter Ending September 2021
North America
The overall market outlook of Calcium Hydroxide strengthened in the North American region during the third quarter of 2021. In terms of demand, a hike was observed from the downstream construction industry. Tight supply, low availability of raw materials, and high energy cost largely affected the pricing trend in the domestic market during Q3. Leading American producer, Lhoist warned in September that it was going to increase the cost of its lime products from November 2021 due to surging gas prices. Hence Calcium Hydroxide prices are likely to stay firm throughout Q4 2021.
Asia
In the Asia Pacific region, the prices of Calcium Hydroxide witnessed a significant rise in the 3rd quarter of 2021. In the Indian market, the prices rose effectively during the month of July, supported by improved offtakes from the downstream sectors. Calcium Hydroxide 90% prices shot up from USD 59.74/MT to USD 73/MT from July to September. Post decline in pandemic cases in India, the demand for Calcium Hydroxide improved significantly in comparison with the previous quarter from the domestic market.
Europe
Calcium Hydroxide prices have risen effectively in the European region during the third quarter of 2021 on the back of the consistent demand from the downstream industries. Surging energy rates, soaring freight charges, and high production cost have affected the margins across the region in Q3 2021. Wholesale gas prices recorded all-time highs in September, pushing warnings that factories could be forced to shut down over winter or switch to more polluting fuels. Disrupted trade activities across Asia and Europe further compelled the prices of Calcium Hydroxide to rush upward in the domestic market in this quarter.
For the Quarter Ending June 2021
North America
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.
Asia
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.
Europe
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
North America
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.
Asia
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
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
North America
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.
Asia
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.
Europe
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.
