Texas (USA): In December, the price of Calcium Chloride in the US market took a negative turn, primarily influenced by adequate inventory levels prompting a decline in pricing. Stable production costs were maintained as natural gas prices remained constant. It is anticipated that Calcium Chloride prices will sharply decline in the forthcoming weeks, driven by high inventories and fewer downstream inquiries. Sellers are expected to reduce rates to stimulate overall market transactions. However, a January 2024 upturn is foreseen as Calcium Chloride, a crucial de-icing agent during heavy snowfall, is projected to witness increased demand, potentially raising inventory prices. The downstream industry, particularly de-icing, is likely to influence prices, with the market poised for heightened stocking activity in the later stages of Q4 and stability in market activities in the US.

In December, Calcium Chloride plants in the US sustained steady operations, buoyed by ample demand from downstream industries. The decline in raw material prices, specifically soda ash, contributed to a downward trend in Calcium Chloride prices. Domestic demand from the de-icing industry remained robust, driven by the peak snowfall season in the later December and January 2024 and increased downstream inquiries. The Purchasing Managers' Index (PMI) for the US market, reported at 48.20, signalled an expansion in the manufacturing sector.

Meanwhile, the natural gas prices have subsided sharply going below USD 2.5/MMBTU reflecting the demand plunge measure in second half of Q4 2023. As per the latest estimates, European natural procurements have been completed, thus easing any demand pressure on the global natural gas prices. This stability in natural gas prices have meant that the cost of production of several chemicals and petrochemicals remained saturated including Calcium Chloride. The stable cost of production of Calcium Chloride has resulted in stable prices from the producers’ end.

According to the Chem Analyst Database, "The Calcium Chloride market is expected to see an increase due to rising feedstock ash prices. The de-icing industry, a major consumer of calcium carbonate, has shown a significant surge in demand with the arrival of snowfall. Despite heavy destocking market activity expected in December, demand from the de-icing industry is likely to drive Calcium Chloride prices upward, creating positive market sentiments. Additionally, the second half of January is expected to witness increased market transactions, propelled by rising feedstock soda ash prices, fostering an overall positive outlook for the Calcium Chloride market. The price of natural gas is likely to increase, contributing to higher production costs."