For the Quarter Ending September 2024
North America
In Q3 2024, the pricing trend observed for Calcium Hydroxide in the North American market was mixed. The mixed pricing trend can be attributed to several factors, including the slowdown in the U.S. construction industry and the impact of higher mortgage rates on homebuilding and sales.
The decline in construction spending, particularly in the residential sector, has directly influenced the demand for calcium hydroxide, which is used in various construction applications such as concrete, mortar, and water treatment. The decrease in new construction projects, both single-family and multi-family, has led to a reduction in the demand for calcium hydroxide. Additionally, the surge in mortgage rates has made it more expensive for homebuyers to finance new homes, which has dampened demand for housing and, consequently, for construction materials like calcium hydroxide. The excess supply of homes on the market has also forced builders to delay new projects, further contributing to the decline in demand for calcium hydroxide.
The prolonged slowdown in the construction industry has had a significant impact on the demand for calcium hydroxide, as the decreasing construction activity has directly influenced the requirement for this material. The overall weakness in the construction sector has created a challenging environment for the calcium hydroxide market, with mixed pricing trends and subdued demand.
APAC
The Q3 2024 pricing landscape for Calcium Hydroxide in the APAC region was marked by a downward trajectory. This downturn was primarily driven by sluggish demand from key downstream industries like construction and paper. The construction and paper sectors, major consumers of Calcium Hydroxide, experienced a slowdown in demand, leading to reduced consumption and consequently, lower market prices. A sufficient supply of Calcium Hydroxide was available in the market, which, combined with reduced demand, put downward pressure on prices. Consistent production levels from manufacturers further contributed to the ample supply and downward price trend. China, in particular, witnessed the most substantial price changes, with a -4% decrease from the previous quarter. The quarter also saw a -2% price comparison between the first and second half, further indicating a declining trend. Disruptions, such as weather-related logistics interruptions and maintenance downtime, also impacted the market dynamics. The quarter-ending price for Calcium Hydroxide FOB Qingdao in China stood at USD 122/MT, underscoring the negative pricing environment prevalent in the market. The overall trend in the APAC region reflected a consistent decrease in Calcium Hydroxide prices, highlighting a challenging and bearish market sentiment.
Europe
In Q3 2024, the Europe region witnessed a decline in Calcium Hydroxide prices, with significant factors influencing market prices. The decreased demand from downstream industries, such as construction and paper, played a pivotal role in the pricing dynamics. Additionally, macroeconomic challenges, high interest rates, and weak manufacturing activities further contributed to the downward pressure on prices. The overall trend for Calcium Hydroxide in the Netherlands saw the most significant price changes, reflecting a challenging market environment. The quarter recorded a -1% decrease from the previous quarter, with a -2% price difference between the first and second half of Q3. Despite some disruption and plant shutdowns, the pricing environment has been predominantly negative. Ending the quarter at USD 526/MT of Calcium Hydroxide FD Rotterdam in the Netherlands, the quarter showcased a consistent decreasing sentiment in the market.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the Calcium Hydroxide market exhibited a mixed trend, shaped by stable upstream conditions and varied downstream demand. Upstream dynamics were characterized by stable supplies of Calcium Oxide, the primary raw material for Calcium Hydroxide. This stability provided a consistent cost basis for manufacturers and prevented significant price volatility.
On the other hand, downstream demand presented a more complex picture. The construction sector saw moderate demand, with residential and commercial construction activities in the US remaining steady but not experiencing substantial growth. This resulted in a balanced yet subdued demand for Calcium Hydroxide from the construction sector. Meanwhile, the paper industry displayed fluctuating demand. The packaging segment of the industry experienced growth due to increased e-commerce, while the demand for printing paper continued to decline because of digitalization, leading to an overall mixed demand scenario.
The US market for Calcium Hydroxide did not face significant pressure from imports, as domestic manufacturers were able to meet local demand adequately, contributing to market stability. The second, second quarter saw a balanced supply-demand situation. The lack of significant growth in key sectors like construction and the varied performance within the paper industry prevented substantial market expansion. Consequently, the Calcium Hydroxide market in Q2 2024 remained stable with moderate price fluctuations, reflecting broader economic conditions and industry-specific dynamics.
APAC
In Q2 2024, the pricing environment for Calcium Hydroxide in the APAC region has been marked negative, characterized by a persistent decline in market prices. Various factors have played a significant role in this downward trajectory. The primary driver has been subdued demand across several downstream industries, notably construction and paper, which have led to an accumulation of inventory and a consequent reduction in manufacturing activity. The global economic climate, marked by inflationary pressures and cautious spending, further exacerbated the situation, limiting procurement from end-use industries.
Focusing on China, the market experienced significant price fluctuations, with an evident trend towards decreasing prices. Seasonally, reduced construction activity post-Labour Day and raining season contributed to weakened demand. The market's response to these seasonal lulls was compounded by a general economic slowdown, affecting manufacturing outputs and new procurements.
Moreover, the quarter has been devoid of any major plant shutdowns or disruptions, which might have otherwise tightened supply and supported prices. Compared to the same quarter last year, the overall sentiment remains bearish, highlighting the significant impact of prolonged demand weaknesses and oversupply. The quarter closed with prices at USD 126/MT of Calcium Hydroxide FOB Qingdao. This consistent decline underscores a challenging pricing environment, with little optimism for immediate recovery in the near term.
Europe
In Q2 2024, the European Calcium Hydroxide market has shown a mixed trend in pricing. The quarter has been marked by a combination of supply constraints and moderate demand recovery from downstream industries such as construction and paper. Limited production activities in the preceding quarters, coupled with disruptions in key trade routes, have exacerbated the supply-side pressures. Furthermore, increased shipping costs due to longer routes to bypass the Red Sea and higher energy prices have also contributed to elevated production costs, thus pushing prices upward in the second half of Q2.
In the context of Germany, where the most significant price changes were observed, the market has been influenced by a combination of factors, including operational constraints among manufacturing firms. Despite a general slowdown in the construction sector, with the PMI indicating contraction, the price of Calcium Hydroxide has increased due to the low availability of finished goods and higher input costs. Seasonality has also played a role, with prices in the second half of the quarter being 2% higher than in the first half. The overall price trend has been positively influenced by the easing of inflationary pressures, which have bolstered manufacturing activities.
From the previous quarter in 2024, prices have recorded a slight decrease of 3%, reflecting residual market adjustments from earlier supply chain disruptions. The quarter concluded with a price of USD 495/MT for Calcium Hydroxide FD Hamburg, highlighting stable but upward-leaning market sentiments. Overall, despite mixed economic indicators, the pricing environment for Calcium Hydroxide in Europe, particularly in Germany, has been predominantly positive.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the North American market for Calcium Hydroxide experienced a range of factors that influenced prices and market dynamics. Similar to other calcium-based products, the supply-demand balance for Calcium Hydroxide was affected by various industry-specific conditions.
The construction sector, particularly in the USA, remained a significant driver of demand for Calcium Hydroxide. The construction industry in the USA continued to grow, supported by increased construction spending and job creation. This growth led to a rise in inquiries and procurement of Calcium Hydroxide, contributing to overall demand in the market.
However, the market for Calcium Hydroxide also faced challenges related to supply disruptions of raw materials. These disruptions impacted production costs and supply chains, potentially affecting prices in the market. Despite these challenges, there were no reported plant shutdowns in the Calcium Hydroxide industry during this quarter. The combination of supply disruptions due to extreme weather conditions and shipping route disruptions, such as those in the Panama Canal and the Red Sea, led to increased freight costs and higher prices. The market stayed positive in Q1 2024, supported by strong orders from the construction and rising production expenses.
APAC
In Q1 2024, the pricing environment for Calcium Hydroxide in the APAC region has been relatively stable, with some fluctuations observed in specific countries. Overall, the market has experienced moderate to low demand from the downstream construction sector, which has influenced market prices. However, the Paper industries have shown active demand, supporting the upshift in price realizations. Limited production activities during the year-end low seasonal demand have led to higher prices, as manufacturers aim to maintain profitability despite reduced output.
China, in particular, has seen significant price changes in Q1 2024. Limited production rates and low seasonal demand have resulted in higher prices for Calcium Hydroxide. The market has witnessed a delicate balance between supply and demand, with limited availability outweighing lower demand. Ongoing safety inspections of coal mines have further tightened the supply of raw materials, contributing to price increments. The Red Sea crisis and disruptions in shipping routes have also impacted freight rates, adding to cost pressures.
Looking at the comparison between the first and second half of the quarter, prices have remained relatively stable, with minor fluctuations observed. Despite the challenging market conditions, the latest quarter-ending price for Calcium Hydroxide in China stands at USD 132/MT FOB Qingdao.
Europe
In Q1 2024, Over the past few months, the Calcium Hydroxide market in Belgium has experienced a continuous decrease in prices, which is attributed to a slowdown in construction projects and reduced demand for crucial raw materials like Calcium Hydroxide.
On the other hand, the demand from the downstream Paper industries didn’t improve much, leading to limited market transactions for Calcium Hydroxide. As per the market sources, all sectors of the construction industry, including housebuilding, commercial activities, and civil engineering, experienced significant declines. This resulted in a subdued demand for Calcium Hydroxide, reported by market participants. The weaker economic conditions brought on by inflationary pressures have faltered the growth of the manufacturing sectors and as a result, the manufacturing Purchasing Manager Index remained in the contraction zone.
The market in Belgium has seen the maximum price changes, reflecting the challenges faced by manufacturers in maintaining profitability amidst reduced output and subdued demand. The latest quarter-ending price in Belgium was reported at USD 461/MT of Calcium Hydroxide FOB Antwerp.
For the Quarter Ending December 2023
North America
During the fourth quarter of 2023, the pricing dynamics of Calcium Hydroxide in the USA were shaped by several factors. Initially, the market saw a decrease in demand from industries downstream, such as construction and paper, resulting in a decline in both inquiries and spot transactions. This drop was mainly due to a slowdown in new construction projects and the impact of higher interest rates on the purchasing power of these sectors.
Furthermore, the operational rates of Calcium Hydroxide manufacturing firms remained moderate, with some companies conducting planned maintenance to manage their inventory levels. Despite lower production levels, there was enough Calcium Hydroxide available to satisfy market demand. Additionally, the Federal Reserve's tightening policies and consequent inflationary pressures contributed to a reduction in output and orders for Calcium Hydroxide.
In December, the prices plummeted and were influenced by the holiday season and reduced trade activities, prompting manufacturers to release their inventories at lower prices to safeguard their profit margins. The weakening housing projects, coupled with the impact of inflation and interest rate hikes, further contributed to the downward trend in Calcium Hydroxide prices.
APAC
In Q4 2023, the prices of Calcium Hydroxide in the domestic market of China experienced significant fluctuations. Initially, the prices were on the higher end due to limited production activities during the Golden Week Holidays, which led to reduced availability of finished stocks. To maintain profitability, manufacturers raised their quotations, supported by increased costs of upstream Calcium Oxide. However, in November, the price of Calcium Hydroxide plummeted as weak demand from the downstream construction sector dominated market sentiments, leading to a bearish trend. National real estate development investment from January to October had declined by 9.3%, reflecting the subdued demand. The market dynamics shifted again in December, with Calcium Hydroxide prices gaining upward momentum despite sluggish demand from construction. The low production rate during the year-end resulted in price increments, driven by reduced output creating scarcity in the market and impacting supply dynamics. According to the National Bureau of Statistics, China's manufacturing activity contracted for the third consecutive month in December. Thus, Calcium Hydroxide FOB Qingdao prices were settled at USD 130 per ton in December.
Europe
In the fourth quarter of 2023, the pricing of Calcium Hydroxide in Europe was influenced by several factors. Firstly, the market experienced a decline in demand from the downstream construction and paper industries, leading to lower inquiries and spot transactions. This was primarily due to a slowdown in new construction projects and the impact of elevated interest rates on the purchasing power of these industries. Additionally, the European Central Bank's tightening measures and the resulting inflationary pressures contributed to reduced output and decreased orders for Calcium Hydroxide. Furthermore, the operating rates of Calcium Hydroxide manufacturing firms remained moderate, with some companies carrying out scheduled maintenance to manage inventory levels. Despite lower production levels, the availability of Calcium Hydroxide was sufficient to meet the demand from the market. However, the limited supply and reduced operating rates led to stable supply-side conditions with no major supply chain bottlenecks. Belgium experienced a decline in Calcium Hydroxide prices during the fourth quarter. The European holiday season and reduced trade activities led to manufacturers releasing their inventories at lower prices to protect their profit margins. The weakening housing projects and the impact of inflation and interest rate hikes further contributed to the decline in prices. The quarter-ending price for Calcium Hydroxide FOB Antwerp in Belgium was USD 487/MT.
