For the Quarter Ending March 2022
Calcium Powder's domestic market remained stagnant in the first quarter of 2022, but demand and sentiments increased, drawing attention. During the first half of Q1 2022, the US markets remained demand-driven, and supply-chain limited, with signs of improving labor resources and supplier delivery performance. A large increase in demand for Calcium Powder from end-user businesses, on the other hand, resulted in a price increase across the country. In the month of March, calcium carbonate prices for USP and food grade were fixed at USD9340/mt and USD865/mt, respectively. Increased raw material, energy, transportation, services, and logistics costs in China aided this pricing adjustment in the country.
The price trend of Calcium Powder increased little in the Asia Pacific region during Q1 2022, when market attitudes improved following the Lunar New Year slump. Due to sustained demand from downstream sectors and a growth in Omicron variant cases in the country, calcium powder consumption in the domestic market remained strong. The market trend in China has been bolstered by rising raw material and energy costs. The introduction of the zero-tolerance covid policy, on the other hand, has had a severe impact on the supply chain of various commodities across the country, including Calcium Carbonate and Calcium Citrate. Calcium Citrate for USP and Food grade was valued at USD2280/mt and USD4300/mt, respectively, in the negotiations. On the same day, pricing for USP and Food grade calcium carbonate were fixed at USD9835/mt and USD680/mt, respectively. The markets rose sharply after operations resumed on February 27 and stayed stable through the end of March.
Calcium Powder prices in Europe followed the same pattern as in North America in Q1 2022, as demand from downstream sectors remained robust throughout the quarter. Calcium Powder has essentially become a must for consumers, particularly in developed markets such as the European region, particularly in the pharmaceutical and nutraceutical industries, resulting in increased demand in the region. Throughout the quarter, the market was exacerbated by rising raw material and freight costs, as well as long-term supply chain problems.
For the Quarter Ending December 2021
During the 4th quarter of 2021, the prices of Calcium Powder witnessed a slight increment in the domestic market of US, North America. Consistent intakes from downstream pharmaceutical and nutraceutical industries resulted in the positive market outlook in this quarter. Logistics problems eased after the chaotic 3rd quarter further strengthened the supply chain across US. Minimum fluctuations were observed in the prices of Calcium citrate and Calcium carbonate on month-on-month basis as market dynamics shifted towards balanced demand and supply fundamentals in this quarter. The FOB US gulf Prices of Calcium carbonate escalated from USD 9350/mt to USD 9410/mt for USP grade and USD 810/mt to USD 830/mt for food grade from October to December.
In the Asian market, the pricing trend of Calcium Powder demonstrated an upward trajectory during the fourth quarter of 2021 followed by the stable demand from the downstream sectors. In the Chinese domestic market, the cost support from the upstream Citric Acid consistently weakened during the first week of Q4 which resulted in the plunged offers of Calcium Citrate across China. The FOB Shanghai discussions for Calcium Citrate were assessed at USD 4340/ MT and USD 2150/MT for the USP and Food grades respectively in the fourth week of November. Whereas discussions for the Calcium Carbonate settled at USD 9604 per tonne and USD 440 per tonne for the USP and Food grades respectively, during the week ending 26th November, taking cues from the high feedstock values. Due to the increase in the production costs, several Calcium manufacturing companies further increased the market prices and passed on the pressure on to the buyers including Yiyang Zhenbang which rose the prices for all its calcium products in October starting. Meanwhile, in India, slow improvements were observed for Calcium Citrate during the first half of this quarter. In terms of demand, strong offtakes from the downstream industries were observed throughout Q4 on the back of the skyrocketed freight charges along various Asian trade routes.
The market sentiments improved in the European market during the 4th quarter of 2021 on the back of the increased demand from downstream pharma grade industry. However, the supply outlook of several Nutraceutical products including Calcium Powder remained disrupted due to the energy crises across Europe. The skyrocketed raw material prices and high freight charges has further supported the market trend throughout the fourth quarter.
In North America, Calcium Carbonate supply fundamentals remained dampened during Q3 of 2021 backed by lower production levels and supply chain disruption in the backdrop of Hurricane Ida. However, the demand from downstream Calcium Citrate and Calcium Carbonate manufacturers remained firm as the offtakes from pharmaceuticals and nutraceuticals industries continued to remain buoyant in this quarter. Hence, In September, Calcium Carbonate was assessed at USD 9300 per MT FOB Gulf Coast while Calcium Citrate rose to USD 4380 per MT CFR West Coast.
In Asia, Calcium Powder prices witnessed an exponential rise during the third quarter of 2021. Demand for Calcium Carbonate and Calcium Citrate remained firm throughout the quarter following an active rebound in industrial and construction activities. In India, Calcium Carbonate and Calcium Citrate are majorly imported from other Asian countries therefore a continuous price increment was observed due to high freight charges and extreme shortage of shipping containers. Besides, congestion on the interoceanic trade routes also led to the delay in cargoes that consequently surged Calcium Carbonate and Calcium Citrate prices in India. Ex-Mumbai Calcium Carbonate and Calcium Citrate USP grade prices were assessed at USD 10795.60 per MT and USD 3154.84 per MT respectively in September showcasing a significant rise during this quarter.
In Q3 2021, Calcium Powder prices experienced a gradual rise in the European market influenced by the Asian market fundamentals. As European market fundamentals are highly influenced by China, lack of clarity over new factory registration rule coming into force in 2022 along with prevailing bad weather conditions over the Chinese east coast have added to the rise in prices of Calcium Citrate USP grade in Europe. Calcium Powder market sentiments remained high throughout the quarter backed by the improvement in offtakes from the downstream manufacturers. In addition, exorbitant freight costs and crippled availability of containers also sent ripples to the prices of Calcium Carbonate and Calcium Citrate. Moreover, sudden rise in energy costs further pushed up the prices of Calcium Powder and its derivatives in the region.