Calcium Carbonate Prices Inches Lower Amid Weak Downstream Demand in Late Q1 of 2023

Hamburg, Germany: Throughout the first quarter of 2023, the prices of Calcium Carbide have demonstrated mixed sentiments. The slowdown in procurement from the downstream construction sector has weakened market sentiments. The prices of key fuels in the process of manufacturing Calcium Carbonate, such as Pet Coke and Coal, have been eased. On the upstream front, with 300,000 tonnes set to arrive in Germany by the end of the first fiscal quarter, Kazakhstani state-owned oil and gas company KazMunayGas has promised to transport 1.2 million tonnes of Crude Oil in 2023.

In India, the prices of Calcium Carbonate have demonstrated a volatile trend throughout March 2023. While end-use industry procurement slowed down, prices rose for the first two weeks before falling. The ChemAnalyst database has shown that Calcium Carbonate (GCC) prices were settled at USD 92 per tonne with the recent price correction in the week ending 24 March 2023. As per the observed market scenario, the market players are unable to lift prices due to increased competitive measures. However, the downstream cement industry is projected to see the dual benefit of improved demand and a reduction in operating costs, which will result in the recovery of profits for Calcium Carbonate firms.

On the other hand, the raging inflation pressures and worries of a financial crisis amid the failure of Silicon Valley and Signature Bank have intensified the economic conditions in the US market. The inventories of Calcium Carbonate in the domestic region were sufficient to cater to the inquiries from the terminal market. Overall, the supply chain was functioning normally in the given time frame. The unwillingness of downstream cement manufacturers to build up stocks has led to stabilized market operations for Calcium Carbonate.

According to the pricing intelligence of ChemAnalyst, the prices of Calcium Carbonate might gain an upward momentum with the strengthening of the construction sector in the near term in the APAC region.   Although, the Calcium Carbonate demand recovery is still uncertain in the western market amid raging inflationary pressures and economic slowdown.