In November, Calcium Hydroxide prices experienced a bullish trend in Germany, with China reflecting a similar upward movement.

In Germany, Calcium Hydroxide prices saw an increase of 1.5% in November, despite a decline in raw material Quicklime prices. This upward price trend was attributed to a modest rebound in economic activity within the Eurozone, as reflected in the Economic Sentiment Indicator (ESI), which rose by 0.1 points to 95.8 in November, surpassing economists' expectations. The increase in the ESI was primarily driven by higher confidence in the industrial and retail sectors, which directly boosted demand for multiple commodities including Calcium Hydroxide. The construction sector, a key downstream consumer of Calcium Hydroxide, also showed a slight improvement in confidence, further supporting the demand for construction-related materials. Despite a small decline in the employment expectations sub-index, businesses remained optimistic about industrial prospects, maintaining sustained demand for Calcium Hydroxide. Consequently, prices in the FD Hamburg market were settled at USD 487/MT in November 2024.

In China, Calcium Hydroxide prices rose by 1.6% in November, driven by a combination of higher Quicklime costs and a strong rebound in construction sector demand. Rising cement prices reflected the broader construction sector recovery. As construction activity grew, demand for materials like Calcium Hydroxide surged.

China’s September 2024 stimulus package, aimed at counteracting the economic slowdown, focused on boosting liquidity, cutting interest rates, and supporting the real estate sector. While these measures were expected to improve housing market confidence and benefit construction, but market participants cautioned that their effects might be temporary. Nevertheless, the rebound has driven higher demand for Calcium Hydroxide, supporting growth in the construction sector.

This price increase was also linked to positive economic developments in China, particularly in the construction sector. The Purchasing Managers' Index (PMI) for China’s manufacturing sector rose to 50.3 in November, up from 50.1 in October (NBS data shows), indicating steady expansion. This growth in manufacturing was reflected in stronger business confidence and improved demand, further driving up the need for key construction materials, including Calcium Hydroxide. Additionally, the business expectation index for the construction sector rose to 55.6 in November, signaling optimism about future market prospects. Although the non-manufacturing PMI, which included construction, saw a slight decline to 50.0, however, the overall sentiment remained positive. As a result, the prices of Calcium Hydroxide FOB Qingdao were settled at USD 125/MT in November.

Looking ahead, the price trend for Calcium Hydroxide in China is expected to remain bullish, supported by both domestic recovery and stronger overseas demand. With the Eurozone economy showing cautious optimism, the short-term outlook for prices remains positive. However, global trade uncertainties, especially potential U.S. trade conflicts and tariffs, could affect future price trends.