Calcium Carbonate Prices Steady as Construction Thrives in Spain and Malaysia

The Calcium Carbonate market in both Spain and Malaysia experienced stability in prices during the first week of October 2024, primarily due to balanced supply and demand dynamics. In Spain, the recovery within the construction sector played a crucial role in supporting the stability of Calcium Carbonate prices. Ongoing residential and commercial infrastructure projects, along with significant public initiatives, contributed to a steady demand for Calcium Carbonate. Additionally, the pulp and paper industry helped maintain demand levels, allowing producers to meet various sector needs without major supply disruptions.

Despite these positive developments, the European construction sector faced challenges due to rising oil prices, which heightened recession risks and created caution among market participants. Geopolitical tensions further compounded these uncertainties. Nevertheless, notable transactions in 2024, such as Turner Construction's acquisition of Dornan Engineering Group, indicated a robust operational presence in Europe, reflecting underlying confidence in the market.

In Spain, the supply of Calcium Carbonate was described as moderate, with producers effectively matching output to market needs. Optimized inventory management practices helped stabilize Calcium Carbonate prices, allowing for swift responses to fluctuations arising from the recovering construction sector. Initiatives like Mondi's Paper Sacks Go Circular Spain, involving collaboration among twelve companies, aimed to improve the recycling of used paper bags in construction, addressing Spain’s waste challenges and promoting sustainable practices.

Conversely, the eurozone witnessed a slight decline in construction activity in September, resulting in job losses and a challenging outlook. Shipping rates from Asia to the Mediterranean fell due to concerns over labor strikes in the U.S., while congestion at European ports created delays, complicating cargo availability.

In Malaysia, the Calcium Carbonate market mirrored the stability seen in Spain, supported by effective domestic production and inventory management. The construction sector remained a vital driver of demand, with projections indicating a growth rate of 6-7% for 2024, bolstered by substantial infrastructure projects outlined in national development plans. Haily Group Berhad expressed optimism for future budgets, anticipating initiatives focused on affordable housing and strategic development, which would further stimulate economic activity.

Supply levels of Calcium Carbonate in Malaysia were also moderate, with producers managing inventories efficiently to stabilize prices. However, developers reported rising costs for building materials due to a fluctuating ringgit and increased prices for key imports like steel and cement. The Real Estate and Housing Developers’ Association underscored challenges from shipping disruptions and raw material shortages, calling for long-term solutions to mitigate these issues.

In terms of demand, both markets benefited from a consistent need for Calcium Carbonate driven by the construction and paper industries. Despite concerns over inflation and manufacturing contractions, Malaysian exporters might gain from reduced freight rates as demand shifts from the East to the West Coast of the U.S.

Looking ahead, the forecast for Calcium Carbonate prices in both Spain and Malaysia indicated fluctuations but generally reflected stable conditions. In Spain, price variations are expected, influenced by seasonal demand and logistical challenges. In Malaysia, projected price trends suggested potential decreases in the short term, tempered by year-end construction activity and domestic production stability of Calcium Carbonate.