For the Quarter Ending December 2022
North America
Throughout the fourth quarter of 2022, Calcium Propionate prices declined, supported by retrenched market attitudes. Due to China's Golden Week during the first week of October, imports of Calcium Propionate from that nation were constrained. Due to their huge inventories, domestic suppliers were able to meet the total demand, and offtakes in the end-user industries were similarly on the lower side during the quarter. The market was constrained for the bulk of the quarter because of feedstock pricing, Chinese Covid lockdowns, Russian turmoil in Ukraine, and other causes. However, as the economy started to expand and the ports experienced a large decline in ship backlogs following a protracted port backlog, things started to improve gradually in the second part of the year. Towards the end of the quarter, the price of Calcium Propionate was assessed at around USD 1450/MT for CFR New York in December.
APAC
Prices for Calcium Propionate declined during Q4 2022 throughout the quarter. The market trend revealed stable dynamics. The closure of industrial facilities for the Golden Week caused a steady fall in orders for China's industry-producing Calcium propionate during the first week of October. Because Chinese traders had to contend with a variety of conflicting signals following a one-week hiatus, it was difficult for the market to catch up to the modest increase observed in several downstream industries during the first half of Q4. Large stocks made it possible for domestic producers and suppliers to satisfy the entire quarter's demand. The administration amended its zero-covid rules in response to criticism and significant unrest in the nation, which once more left the nation exposed. Towards the end of the quarter, the price of Calcium Propionate was assessed at around USD 1060/MT for FOB Shanghai in December.
Europe
In the fourth quarter of 2022, calcium propionate prices declined somewhat in the regional European market. Demand in Germany remained on the weaker side throughout the quarter, which made it difficult for the pharmaceutical and nutraceutical industries to plan and stay afloat. This was in addition to rising energy and raw material prices. Despite growing energy prices and supply-chain concerns, Germany's industrial production barely increased in October. Towards the end of the quarter, the price of Calcium Propionate was assessed at around USD 1350/MT for CFR Hamburg in December.
For the Quarter Ending September 2022
North America
Throughout the third quarter of 2022, Calcium Propionate prices varied, supported by conflicting market attitudes. The regional market for calcium propionate in North America had a jump in offtake in the first part of Q3 2022 due to the expansion of bakeries and confectioneries. Additionally, the price increase of Calcium propionate was somewhat influenced by rising feedstock prices for propionic acid. The calcium propionate price has been stable because the supply rate is steady enough to meet the total demand. Prices declined in the second half of Q3, especially in the final month of the quarter, and the market trend for calcium propionate in Q3 indicated negative attitudes. Towards the end of the quarter, the price of Calcium Propionate was assessed at around USD 2270/MT for CFR New York in September.
APAC
Prices for Calcium Propionate first rose during Q3 2022 before falling later. Throughout the quarter, the market trend revealed mixed sentiments. Because China is the world's largest supplier of food additives, the escalating COVID-19 instances have significantly slowed down product supply to global markets. This has made the ongoing supply and port constraints during the quarter even worse. The estimates for reduced congestion did not come to pass; thus, it was obvious that the delays off the coast would take longer to improve. China's zero-tolerance policy, which continues to obstruct manufacturing and logistics and cause havoc with the transfer of additives and raw materials, caused supply chains to become stretched. Towards the end of the quarter, the price of Calcium Propionate was assessed at around USD 1440/MT for FOB Shanghai in September.
Europe
In the third quarter of 2022, calcium propionate prices varied somewhat in the regional European market. Furthermore, because they want to get rid of inventory, manufacturers are prepared to sell their excesses for less money. Sellers of Calcium Propionate have already started selling it at a little reduced price in accordance with this destocking strategy to prevent a sharp decline in value. The producers and traders intended to destock their current stocks toward the conclusion of the quarter. The first week of September saw constant to moderate weekly increases in Calcium Propionate prices in Germany, supported by weak downstream demand. Towards the end of the quarter, the price of Calcium Propionate was assessed at around USD 1920/MT for CFR Hamburg in September.
For the Quarter Ending June 2022
North America
An increased number of bakeries and confectionaries have surged the offtake of Calcium Propionate in the regional market in North America during Q2 2022. Furthermore, escalated feedstock Propionic Acid prices contributed to the slight enhancement in the price value of Calcium propionate. Meanwhile, the supply rate was consistent enough to cater to the overall demand and hence led to the steadiness in the prices of Calcium Propionate. After prices initially increased and decreased, the market trend for Calcium Propionate showed conflicting sentiments in Q2. The approach has further caused disruptions in the logistics and transportation networks, which greatly slowed the movement of commodities across the nation and too large international shipping ports.
APAC
During Q2 2022, the prices of Calcium Propionate initially increased and then later decreased. The market trend showed conflicting sentiments during the quarter. The rising cases of COVID-19 have largely delayed product delivery in foreign markets because China is the world's leading supplier of food additives. This has further aggravated the protracted supply and port bottlenecks during the quarter. Clearly, the delays off the coast would take longer to improve as projections for reduced congestion failed to materialize. Supply chains were strained due to China's zero-tolerance policy, which has continued to impede manufacturing and logistics and cause chaos with the transfer of additives and raw materials.
Europe
Calcium Propionate price fell somewhat in the European regional market during the second quarter of 2022. Furthermore, manufacturers are willing to sell their surpluses at a lower price because they aim to clear inventory. To avoid a rapid drop in the value, sellers of Calcium Propionate have already begun selling it at a little lower price in compliance with this destocking plan. Towards the end of the quarter, the manufacturers and traders planned to destock their present stockpiles. The prices of Calcium Propionate showcased stable to slight increment weekly in Germany during the first week of June, backed by stagnant downstream demand.
For the Quarter Ending March 2022
North America
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
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.
Europe
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.
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.
Europe
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.
