The global economic slowdown has deteriorated the market sentiments of various commodities, including Calcium Carbonate. The construction sector has been facing disrupted power supply, dropped retail sales, and declining factory activity across the global region. As a result of labor and material shortages, the Austrian and German construction sectors have demonstrated a significant decline of -6.3% and -4.5%, respectively.

The U.S. market has struggled with rising interest rates and global macroeconomic constraints since the start of the second half of 2022. The data shows that U.S. GDP declined in the first and second quarters of 2022, at annual rates of 1.6% and 0.6%, respectively, deteriorating the market fundamentals of Calcium Carbonate in the domestic region. Furthermore, market participants have reported that the decelerating inflation rate has continued to impact downstream construction activities. The build-up of inventories and the contracted new orders have prompted the manufacturers to reduce their quotations to maintain the supply-demand equilibrium. Therefore, the Calcium Carbonate prices declined by USD 20 per ton on September 2nd.

Furthermore, in India, the price trends of Calcium Carbonate have plummeted by approximately 3.3% in the first week of September FY2022. As per the latest data, one of the leading market players, MRPL, has reduced upstream pet coke prices by INR 1,800/t for September. The sliding construction sector and uncertainties in the raw material costs have pushed Indian downstream cement makers like JSW Cement, Ramco Cements Ltd, and Orient Cement Ltd to import pet coke from Venezuela at improved prices owing to retaliatory sanctions on European nations by Russia. Furthermore, the crippled construction activities amid the monsoon season have dampened the demand for upstream Calcium Carbonate.

As per ChemAnalyst, the pricing dynamics of Calcium Carbonate will further tapper off amid the expected slowdown in demand from the downstream construction industries. In addition, the rising degree of economic uncertainty with fluctuating raw material prices will likely impact the price realizations of Calcium Carbonate in the forthcoming weeks.