Calcium Silicate Market Faces Challenges in Germany while Prices Soar in China

In December 2023, Calcium Silicate experienced varied patterns in the global market, with prices depreciating in Germany, while following an opposite trend in China. The fluctuation in prices was mainly influenced by demand from the downstream sectors of cement manufacturing, as well as the use of anticaking agents in food preparation and construction industries in the respective regions. Moreover, a combination of factors including the holiday season, geopolitical tensions in the Middle East, and disruptions in the supply chain due to an attack by Houthi rebels impacting transportation in the Red Sea amid an economic downturn, have collectively shaped market dynamics and played a role in the pricing variations of Calcium Silicate in this timeframe. These circumstances resulted in an 8% decrease in prices in Germany, while China experienced a 1% elevation.

During this month, the Calcium Silicate market in Germany experienced a downward trajectory, driven by subdued demand from the downstream cement and construction sector due to the economic slowdown. As the year concluded, there was minimal improvement in German construction activity, maintaining an overall contraction phase. New orders for Calcium Silicate saw a significant decline, and residential construction witnessed a substantial decrease in December, despite input cost inflation reaching a two-year low. The construction sector, especially housing activity, continued to grapple with challenges arising from various factors. A combination of rising prices, higher interest rates, and a general reluctance to invest in the face of economic uncertainties led to a persistent decline in demand for Calcium Silicate in construction projects. In addition, the yearly inflation rate in the Euro area is projected to increase to 2.9% in December 2023, a rise from the 2.4% that was recorded in November., as per a flash estimate from Eurostat, the statistical office of the European Union. This has impacted consumer spending and influenced the demand for Calcium Silicate.

Chinese Calcium Silicate market showed a healthy demand as the previous month amid increased inquiries from the downstream businesses. China's attempts to rejuvenate its struggling real estate sector and support an uneven post-pandemic economic rebound have led to increased demand for Calcium Silicate from the downstream construction and cement sectors and further gains are anticipated in the early months of 2024.  Further, as the market approached pre-holiday restocking, optimistic expectations were prevalent, making prices rise by the end of the year 2023.

According to ChemAnalyst, the Calcium Silicate market is expected to exhibit a downward trend in both the German and Chinese markets in the upcoming months. Economic slowdown, persistent inflationary pressures, and geopolitical tensions may affect procurement activities in the European region, potentially leading to a slump in Calcium Silicate prices. Similarly, the Chinese Calcium Silicate market is projected to dwindle due to subdued demand and adequate product availability in the domestic market.