Calcium Chloride Prices Budge Downward in the Netherlands Amid Low Downstream Demand

The domestic market for Calcium Chloride in the Netherlands has experienced a notable price downturn, primarily driven by a decrease in demand downstream within the region. The economic landscape was marked by a decline in the Purchasing Managers' Index (PMI) for manufacturing in the euro area, dropping from 43.40 the previous month to 43.10. This consecutive contraction for the year was influenced by heightened borrowing costs from the European Central Bank (ECB), exerting a sustained impact on overall factory activity, and the month witnessed a further deterioration in factory operations, characterized by a sharp decline in both new orders and production levels, contributing to a month-on-month reduction in overall output. The slowdown in production rates could be attributed to the availability of sufficient Calcium Chloride materials. Furthermore, in this period, there was a reduction in the cost assistance provided by Sodium Carbonate, a feedstock for Calcium Chloride. This added to the overall drop in production expenses. This multifaceted scenario in October underscored the challenges faced by the Calcium Chloride market, intertwining economic indicators, borrowing costs, and shifts in production dynamics, all of which shaped the pricing landscape during this period.

Calcium Chloride availability persisted at satisfactory levels within the domestic market, although manufacturing units in the region sustained low production rates due to subdued demand conditions. Notably, the region did not experience any significant disruptions in the supply chain.

Calcium Chloride downstream demand from industries involved in de-icing and construction exhibited a notable slowdown. Additionally, diminished off-takes were observed across various end-use sectors, including oil and gas, water treatment, plastics, and pharmaceuticals. This collective deceleration in demand underscored the broader challenges faced by Calcium Chloride in catering to diverse industries grappling with reduced consumption.

According to the ChemAnalyst database, Calcium Chloride prices are anticipated to undergo a decline due to destocking activities prevalent in the market. Additionally, the high inventory levels in the Netherlands market contribute to selling inventories at discounted prices. The subdued demand from the international market is expected to further prompt sales at lower price points. Moreover, the projection that Natural Gas prices will not experience a significant increase is foreseen to keep production costs on the energy front at a lower level. This confluence of factors suggests a potential decrease in Calcium Chloride prices in the near term. Moreover, it is anticipated that the prices of soda ash, a raw material for Calcium Chloride, will not rebound this year.