Calcium Powder Crunch: Global Prices Soar Amidst Rising Demand and Supply Squeeze

The prices of Calcium Powder experienced a global uptrend in early September, influenced by several factors. The increase is attributed to sustained demand from the food, cosmetics, and pharmaceutical sectors, persistent supply chain disruptions, and a constrained market supply. Consequently, market players are setting higher prices for Calcium Powder to maintain their profit margins.

The ongoing slowdown in China's manufacturing sector, reflected in the fourth consecutive drop in the manufacturing purchasing managers' index (PMI) to 49.1 in August, has been a key driver of rising Calcium Powder prices. This downturn underscores persistent issues in China's economy, exacerbated by extreme weather conditions such as heat waves and heavy rainstorms. These adverse weather events have disrupted the production and supply chains of Calcium Powder, resulting in lower output and a tighter market supply, which in turn has pushed prices upward.

In India, Calcium Powder prices saw a significant increase, driven by rising demand from both domestic and international markets. This uptick was fueled by a notable expansion in business activity, with a substantial rise in new business orders. Furthermore, India’s retail inflation remained relatively low at 3.65% in August, well below the Reserve Bank of India's target of 4%. This lower inflation rate enhanced consumer purchasing power and spending, further propelling the upward trend in Calcium Powder prices. As a result of these factors, market manufacturers and suppliers have responded by raising their prices to preserve profitability amidst the changing market conditions.

In August, consumer confidence in the USA surged to a six-month high, driven by improved perceptions of the economy and inflation, despite waning optimism about the labor market. This rise in confidence is expected to boost demand for Calcium Powder, potentially contributing to an upward trend in its prices. Additionally, concerns over a potential strike at East and Gulf Coast ports, which could severely disrupt supply chains, are weighing on importers. In anticipation of possible shortages, many importers are likely to accelerate shipments and build up inventories, further tightening the supply of Calcium Powder and adding more pressure for prices to increase.

According to ChemAnalyst's analysis, Calcium Powder prices are expected to stay on the higher side in the latter half of September, driven by steady demand from end-users. Additionally, with the upcoming Golden Week, buyers might boost their purchasing activity to secure adequate stock, potentially affecting global Calcium Powder prices. Furthermore, a possible decline in inflation in Western markets could prompt central banks to lower interest rates, which may provide additional support to the market.