In the first half of March 2025, the prices of Calcium Chloride fluctuated in a narrow range with underwhelming market performance of commodity.  This was due to consistent cost of production, with energy and key raw materials prices remained subpar. The price of raw materials limestone and HCl remained unchanged, ensuring consistent production costs for Calcium Chloride.

Additionally, market availability was sufficient to meet demand from key sectors such as de-icing, dust control, and industrial applications, restricting any significant price fluctuations. In the month of February, demand for the product from the downstream construction and dust suppression sectors declined due to higher infrastructure costs and rising labour expenses. On the other hand, demand from the oil & gas drilling sector has also remained weak leading to fewer products inquires. No major rise in upstream costs, energy prices, or raw material availability issues, subdued demand kept Calcium Chloride prices stable, a trend expected to persist in the coming weeks.

In February 2025, the supply of Calcium Chloride in the U.S. remained adequate to meet downstream industry requirements. Plants operated at slightly lower rates to align with market conditions. However, rising labour costs due to workforce shortages have increased overall production expenses across the chemical sector. In parallel to the weaker downstream demand, production rates were optimized to balance supply and demand, ensuring stable profit margins for producers. Additionally, no major changes in energy costs and raw material prices were observed, production rates were reduced slightly to prevent oversupply.

Demand from the construction and de-icing sectors in the U.S. has declined, impacting Calcium Chloride consumption. Since Calcium Chloride is widely used in dust control, road stabilization, and industrial applications, overall product inquiries have remained moderate to weak. The slowdown in infrastructure projects, driven by high raw material costs and increasing interest rates, has further dampened demand. According to market sources, rising transportation and energy costs—along with new government-imposed tariffs—have restricted cheaper imports, particularly affecting industries reliant on construction materials. In addition, reciprocal tariffs imposed by other nations on U.S. exports have created ambiguity in the global demand, further restricting product inquiries. On the other side, it is anticipated that the U.S. government's emphasis on expanding domestic manufacturing and infrastructure projects will stimulate local demand, which might eventually lead to a rise in calcium chloride inquiries.

According to our database, the market for calcium chloride is anticipated to continue to be constrained by declining production costs and decreased demand from the oil drilling and dust control sectors. Furthermore, there is less expectation of a price surge in the second half of March because the market's supplies of calcium chloride are still sufficient to meet downstream demand. The increase in seasonal demand is expected to boost downstream sector activity in coming months.