Calcium Chloride Prices Rise in US Amid Increased Demand From Downstream Construction Industry

Texas (US): The increase in US Calcium Chloride prices is primarily due to rising costs of its upstream Calcium carbonate and low inventory levels, which have allowed traders to charge higher prices. In April 2024, the US Manufacturing PMI fell to 50 from 51.9 in March, missing market expectations but slightly up from the flash estimate of 49.9. This was the first halt in factory activity growth this year, following three months of expansion. In response to declining new orders, Calcium Chloride manufacturers reduced purchasing activity, indicating heightened caution and a reluctance to pursue new business. Nonetheless, production remained steady thanks to a decrease in backlogs, resulting in increased output. Although staffing levels dipped slightly, demand for capacity stayed mostly unchanged, and purchasing activity grew. Input costs for Calcium Chloride rose sharply due to higher oil and metal prices. Despite these challenges, Calcium Chloride factories remained broadly optimistic about future output levels, supported by strong demand from the Calcium Chloride downstream construction industry.

Presently, domestic Calcium Chloride plants are operating at maximum capacity to satisfy both domestic and international downstream demand. Moreover, Calcium carbonate prices, the upstream raw material for Calcium Chloride, have shown an increasing trend this month. Initially, the Calcium carbonate market witnessed a decline, followed by a subsequent upturn. There was an emphasis on maintaining essential procurement amidst weak downstream demand and a subdued market, leading to a downturn in the Calcium carbonate market. It is anticipated that Calcium Chloride prices will increase in the coming months due to low inventory levels and high demand pressure.

The Calcium Chloride downstream construction industry continues to experience robust demand, despite challenges such as extended lead times and difficulties in obtaining Calcium Chloride vendor  quotations. Some vendors are now imposing additional charges for quotations. Several factors, including government policies and infrastructure investments in Boston, heightened government spending in Houston due to the election year, and issues in the credit market, have been observed. Concerns regarding upcoming digital currency and federal spending controls have also emerged. Infrastructure projects in Jacksonville faced unexpected delays, with unclear explanations from the local government. In Long Island, concerns about inflation and government intervention arose, while Los Angeles noted stabilization after years of cost escalation. Morris Plains reported a surge in the US process industry, whereas Murrieta expressed concerns about dwindling public funds. Despite these challenges, Philadelphia emphasized a strong US market, with stable interest rates and controlled inflation, offering some stability amid volatile conditions.