For the Quarter Ending June 2023
North America
The price trend of US Calcium Silicate witnessed a declining pattern throughout the second quarter of 2023 due to the bearish downstream sentiments in the market. Merchants were not receiving fresh orders from the downstream sector amid high-interest rates, and inflationary pressure in the country dampened the demand among the enterprises. The low demand was mainly driven by poor performance in the downstream construction industry. Overseas sales had dropped notably, and the domestic market remained deteriorated during this period. Further, the major bank failures significantly impact the construction and housing market and the wider economy in the US region. The failures of major US banks have raised questions about the banking system's stability and may cause people to lose faith in it. Enterprises were working on the existing stocks to meet the requirements of the domestic market, and the lackluster demand smoother the supply of the products in the US region. Moreover, the US construction material prices remained flat in June 2023.
APAC
In the second quarter of 2023, the price of Calcium Silicate witnessed a bearish pattern due to the weak demand in the South Korean market. With inflation driving up costs and rising interest rates hurting demand, the downstream construction sector experienced a decline. Throughout the second quarter, there was less demand for Calcium Silicate in the construction industry and products, which helped relieve pressure on construction supply chains. The price drop was supported by stable exporter inventories and less expensive cargo imported for the Korean market. In China, the manufacturing PMI fell below its threshold limits, indicating a decline in production and poor performance from the construction industries. The pace of market recovery slowed down in the second quarter of 2023, and there was not enough momentum for prices to rise. Overall, global trading activities stagnated in Q2, and the demand for the product did not increase from both domestic and overseas markets. Weak house prices and declining exports have increased pressure on policymakers to support real estate and revive pent-up demand. In addition, due to the impact of rainy weather in many parts of the country in June, the operating rate of construction sites has declined, the demand for building materials has declined, and the demand for Calcium Silicate in the cement industry has also decreased.
Europe
The price of Calcium Silicate saw a declining trend in the German market due to the weak fresh orders received from the domestic market during the second quarter of 2023. Improved supply capacity coupled with a drop in demand inevitably pushed prices lower. A further fall in construction activity is being brought on by higher interest rates in the eurozone, and it has further accelerated in residential and commercial buildings month-over-month. The year's greatest decrease in consumer spending was seen in the region. The decline in demand and production was the steepest seen in 2023 so far. Backlog fell sharply in response to the weakness in new orders, and output expectations remained subdued. A lack of new contracts remained the primary factor behind reduced activity, discouraging the firms from buying new materials. One of the main headwinds facing the construction sector was rising interest rates. Alongside heightened customer uncertainty and still-high building prices, it further strained demand for construction work, as highlighted by a further steep drop in new orders. Weakness in the construction sector is becoming more persistent.
For the Quarter Ending March 2023
North America
A weak to stable trend in the price of calcium silicate was seen in the North American market throughout the first quarter of 2023 as a result of the construction and cement sectors' sluggish demand. The product's cost was constrained by the nation's broad availability and the modest demand from downstream industries. The primary reasons why the demand for the construction industry was muted were high-interest rates and inflation. Additionally, the overall trend in freight costs continued to fall, assisting the Calcium Silicate industry in the overseas marketplace. The cost of other building materials, such as cement and concrete, increased in the USA market, which eventually limited the procurement operations.
Asia
The Calcium Silicate market fluctuated upward price trend in the Asian market during the first quarter of 2023. China has accelerated infrastructure investment in the first quarter of this year to propel economic growth and drive up the activity of many associated downstream enterprises and broad market demand for basic materials, including Calcium Silicate. China opened the market after the Lunar holidays, and the market got improved and received more orders from the overseas market, further supporting the price trend. The Purchasing Managers' Index (PMI) for China hit a record high of 57 points in March, and the manufacturing sector index saw a strong gain over the previous 12 months. On the other hand, attitudes among service providers and in the construction sector rose to a 12-year high.
Europe
The first quarter of 2023 saw a declining trend in the price of Calcium silicate commodities in Europe due to a lack of demand around the overseas market. High-interest rates, inflation, and geopolitical concerns all contributed to a fall in product demand. The price of the associated commodities has increased, and the trade activities of Calcium silicate have decreased due to inflation rates. Demand dynamics persisted in their lackluster state and intended a downward trend in pricing for the entire quarter. The cost of Calcium Silicate hovered around USD 1122/MT on a CFR Hamburg basis at the end of the quarter.
For the Quarter Ending December 2022
North America
North American market heard battling with high inflation and the fear of recession, exacerbated by the hit of storm Elliot. However, the effect of the storm remained lower than anticipated earlier, as people were expecting a similar effect to last year's polar storm in Texas. Further, imports remained cheaper in the country from Asia, leading the price of the product to fall further in the market and compelled domestic players to revise their offers due to high competitiveness in the market. Additionally, easing freight charges also remained a major factor behind this prices trend in the country, as easing freight charges led the imports to remain cheaper.
Asia
Asian market witnessed an overall dullness in demand for Calcium Silicate during Q4 2022, owing to a decline in economic activities of economies like China, and stockpiled inventories in major importing countries, where price heard hovering at USD 1065/MT IN November in China. Supplies maintained overall stability throughout the quarter, and no such disturbances in regional trade activities were observed. However, rising uncertainties related to the pandemic reduced the shipment of cargo from China, and some traders witnessed stockpiled inventories. Easing pandemic restrictions also played an important role in driving market sentiments. Demand for the product remained low from the international market during this month, as the current situation in the country has restrained overseas consumers from ordering cargo from China.
Europe
As per the data, the European Calcium Silicate market witnessed a steep and consistent fall in prices throughout the 4th quarter of 2022, owing to deepening recessionary fear and slowing economic momentum of the region. Further, cheaper imports from Asia remained one of the region's major factors behind the price trend. Furthermore, no such supply disturbances were observed across Asia-Europe trade routes during this timeframe. Additionally, easing natural gas prices have also made the market competition in the region, justifying this price trend in the country. The price of calcium Silicate was assessed at around USD 1172/MT during December 2022 in Germany on CFR basis.
For the Quarter Ending September 2022
North America
Stable demand from the domestic pharma industry amidst a smooth flow of cargoes fluctuated the price of Calcium Silicate in the North American market during this quarter. As per the insights, a decline in global Calcium Silicate prices initially affected the price trend in the USA, where prices plunged during the first half of the quarter and showcased a marginal rebound in the latter half. Furthermore, high production costs due to the rise in energy prices kept on concerning producers, as it was affecting profitability. However, the government initiated efforts to cool down inflationary pressure from producers as well as consumers.
Asia
Calcium Silicate prices in China abruptly dropped this quarter as a result of lower national inflation and improved supply chain activities. According to the data, in June 2022, there was a decrease of about 2.5%, which was primarily caused by a fall in factory-gate inflation in the nation. In the meantime, demand from the global market remained stable for the firm. The prices of Calcium Silicate have also been rising for a while, and makers of Calcium Silicate have been forced to adjust their pricing without sacrificing their profit margins as a result of the falling prices of other silicates. As a result, after experiencing a reduction, the price of Calcium Silicate was estimated to be around USD 1162/MT in July 2022.
Europe
Cheaper imports have provided an opportunity for German Cal-Sil traders to revise their offers on the domestic market in Q3 2022. The figures show that July month saw a reduction of about 3%, which was caused by less expensive imports and the falling cost of numerous Silicates on the international market. However, the product's core demand from the downstream pharmaceutical industry held steady to robust in the short term. The country's delayed silicate offtakes as a result of the impending recession have also had an impact on the product's pricing dynamics. Thus, after experiencing a considerable decline for the first two months, Cal-price Sil's in August 2022 on a CFR basis was almost USD 1240/MT.
For the Quarter Ending June 2022
North America
Calcium Silicate price continued escalating throughout the quarter across the US market owing to stable demand fundamentals for the product from the downstream construction and pharma industry amidst high input costs. As per the insights, high raw material costs and soaring natural gas prices during the second half of the quarter led to a steep rise in the price of several commodities, including Calcium Silicate, in the US market. Furthermore, rising domestic freight charges also remained a major concern, as it was another reason for the consistent price uptrend in the domestic market.
Asia
Market sentiments for Calcium Silicate remained buoyant throughout the quarter in the Asian market, while China remained the price fluctuations center. According to the analysis, the price of Calcium Silicate increased by about USD 35/MT in May 2022 in China. According to the sources, this price increase was supported by a steady rise in raw material costs, including expensive coal and low natural gas imports into the country. However, it was observed that the country's need for the product has decreased due to pandemic-related problems. According to a reliable market source, Calcium Silicate prices have stayed strong throughout the quarter even though demand from the cement and pharma industry has decreased due to reduced industrial activity, all thanks to China's Zero COVID policy.
Europe
Due to consistent domestic market offtakes and growing import material prices, ChemAnalyst data indicates a rise of about USD 28/MT in Germany. According to a reliable market source, supply chain disruptions in the local market have caused prices of imported commodities to increase. Since the beginning of the war between Russia and Ukraine in February 2022, trading activities have been disrupted, which makes it more difficult for local players to maintain their industrial activities. From the downstream construction sector, where building material costs have been steadily increasing since February 2022, the demand fundamentals for the product have been constant across the European market.
For the Quarter Ending March 2022
North America
Being a very common product, Calcium Silicate prices maintained overall stability and gained marginally during this quarter, under the influence of rising inflationary pressure on manufacturers. Russia Ukraine conflict has been affecting global crude oil value chain since the Q4 2021, which is still a major concern for key players. Furthermore, demand for the product remained firm from the domestic market, while traders received ample queries from niche buyers. In addition, raw material prices keep on tracing uptrend due to rising upstream value supported by high demand from other downstream segments. Thus, Calcium Silicate prices in USA was assessed as USD 1100/MT during February 2022.
Asia
The Asian Calcium Silicate market was hampered owing to reduced raw material production, supply chain disruptions, and hampered trade movements on the account of Lunar Holidays and Winter Beijing Olympics which caused the prices to skyrocket during the month of February in China. The rise in energy prices coupled with supply disruptions was majorly influenced by the ongoing Russia-Ukraine conflict, that has pushed up Calcium Silicate prices. Upstream feedstocks Hydrochloric Acid and Sodium Silicate prices have risen in China as worldwide demand has surged, affecting the construction industries. With rising bulk purchases in the regional market, buying sentiments were seen to be high.
Europe
The price of Calcium Silicate in Germany increased by 5% month over month to USD 1175/MT in February. Supply restrictions in Germany for the feedstocks Hydrochloric Acid and Sodium Silicate, as well as limited stockpiles in the industries, contributed to the recent price trend. Furthermore, after Moscow's activity in eastern Ukraine, Germany paused the certification process for the Nord Steam 2 pipeline, citing seasonal demand growth, higher scrap costs, and concerns that energy prices could rise further. Downstream demand from the cement and construction industries, as well as the pharmaceuticals industry, appeared to be strong. Traders were heard purchasing on the spot market for the next months, citing logistics limitations and rising transportation costs as reasons.
