Calcium Hydroxide Prices, Pricing, Demand & Supply
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 Prices 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.
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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.
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