For the Quarter Ending March 2022
Prices of Calcium Propionate soared in the North American market during the 1st quarter of 2022, backed by strong downstream demand. Due to changing food preferences of Americans, the consumption of packaged and processed food products has increased recently, which eventually led to higher demand for Calcium Propionate. The enhanced number of bakeries and confectionaries has also supported the surged offtake of Calcium propionate in the domestic market. Furthermore, intensified feedstock prices fuelled the prices of Calcium Propionate. Besides, skyrocketed crude oil prices, augmented freight charges, and congested ports amidst the Russia-Ukraine conflict further propelled the price value of Calcium Propionate. Conclusively, In the USA, the evaluated price value of Calcium propionate at CFR New York was USD 2477/MT during January, which escalated to USD 3179/MT in February.
Asia-Pacific region witnessed a surge in the prices of Calcium propionate during quarter 1 of 2022, on account of firm demand from end-user industries. As the consumption of bread has increased in the region, especially in developing countries like India, so is the demand for Calcium Propionate in the domestic market. Meanwhile, the enhanced production cost due to the escalated price value of Propionic Acid drove the Calcium Propionate prices upwards. Furthermore, fuelled crude oil prices, intensified logistic charges, port congestions, and cargo shortages due to the continued war tensions between Russia and Ukraine propelled the Calcium propionate prices upwards. Hence, In India, the prices of Calcium Propionate Ex-Mumbai assembled at USD 2139.76/MT during March.
Calcium Propionate prices followed the same path as they did in North America and Asia-Pacific and showcased a rising trend in Europe. The significant factors that influenced the price value of Calcium Propionate in the European market were increased demand from downstream industries and increased propionic acid prices. Owing to the Fast-moving lifestyles, the consumption of packaged and processed food has increased in several European countries, which consequently led to solid demand for Calcium Propionate in the market. Besides, soared Propionic Acid prices influenced the upstream cost involved in the production of Calcium Propionate, which further propelled its prices. In addition, the escalated crude oil prices and inclined freight charges also supported the price hike of Calcium Propionate. Thus, the assessed prices of Calcium Propionate in Germany were USD 2987/MT CFR Hamburg during January, which kept on increasing till March.
For the Quarter Ending December 2021
During the 4th quarter of 2021, the prices of Calcium Propionate witnessed a significant rise across the North American region. A sharp increase in the prices of Calcium Propionate was backed by the soaring energy costs, disrupted supply chains, high freight charges, transport issues, and the Omicron spread of the coronavirus. The production costs have increased in the U.S. across all subsectors due to surging prices for commodities, transportation bottlenecks, and labor shortage, which negatively affected the margins of several food producers and processors, which further affected the Calcium Propionate prices in the domestic market. All these factors have resulted in the highest food price inflation since 2008 by approximately 6.3% year-on-year in December 2021.
In the Asia Pacific region, the prices of Calcium Propionate remained stagnated throughout the 4th quarter. In the Chinese domestic market, the Calcium Propionate pricing trend witnessed an upward trajectory backed by the firm demand and increased raw material costs. In the week ending of December, Calcium Propionate prices were assembled at USD 1800 per MT FOB Guangzhou. In India, the Ex-Mumbai prices staggered upwards in the month of November by settling at USD 2343.35/mt and then later declined in December and got assessed at USD 2179.05/mt. The increased cost of upstream Propionic Acid resulted in the increased prices of its downstream derivatives, including Calcium Propionate, in the Indian domestic market. Several Indian manufacturers stated that due to the steep rise in raw material cost, they were compelled to revise their calcium Propionate prices in order to protect their profitability across the Indian market. In terms of demand, offtakes remained stable from the downstream sectors throughout Q4.
The prices of Calcium Propionate increased in Europe during the 4th quarter of 2021, followed by the increased cost of upstream Propionic acid. The prolonged supply bottlenecks, skyrocketed commodity prices, high freight charges, and the emergence of the Omicron variant have further supported the price trend of Calcium Propionate across Europe. A hike in demand from the food and beverage industry was observed during this quarter.
The overall market of Calcium Propionate showcased an upward trajectory in the third quarter of 2021. Consistent increment in the prices of upstream feedstock bolstered the prices of Calcium Propionate across the region during Q3. Major producers in Asia were facing difficulties in the production of Calcium Propionate which caused a decline in export volumes further affecting the US market. As per the market players, the demand for food-grade calcium propionate remained firm due to growing consumption from the food and beverage industry in Q3 2021.
The prices of Calcium Propionate rose effectively across the Asia Pacific region in the third quarter backed by the increased consumption from the downstream food and beverage industry. In the Indian market, Calcium Propionate prices observed a consistent increment in the whole of August buoyed by the astonishing hike in freight charges and surging upstream cost. Calcium Propionate Ex-Mumbai prices shot up from USD 1892/MT to USD 2019/MT in Q3 2021. Traders revealed that the availability of upstream Propionic Acid has been limited due to supply chain disruption caused by Delta variant cases in various countries. Although the situation has begun to ease however overall trade dynamics are expected to take some more weeks to pave normalcy.
In the European region, the domestic market of Calcium Propionate followed an upward trend in Q3 2021. A hike in the price of upstream Propionic acid pushed up the cost curve of Calcium Propionate across the region in this quarter. In terms of demand, it has remained firm and very well supported by the downstream food and feed preservatives industry.