Shanghai (China): In February 2024, the Chinese domestic Calcium Formate market witnessed a subdued trajectory marked by minimal price variations and sluggish trading activities during the Lunar New Year. The market's low-price dynamics were also influenced by weak cost support from feedstock formic acid. Moreover, the demand for Calcium Formate in downstream sectors, notably in the concrete sector, remained constrained, mirroring the slower growth observed in the Chinese construction sector.

The downstream industries of Calcium Formate, notably the property and construction sectors, play vital roles in its market dynamics. In 2023, there was a 1.3% decrease in the added value of the property sector, leading to repercussions in associated industries, especially downstream construction. Projections from the International Monetary Fund (IMF) indicate a substantial 50% drop in new housing demand in China over the next decade, further influencing the Calcium Formate prices.

Notably, in January 2024, new housing supply and sales in key 30 cities of China saw a significant month-on-month decline of over 40%, as reported by the China Real Estate Information Corp (CRIC). The subdued buying enthusiasm and sluggish demand for Calcium Formate from importing nations, coupled with lower demand in western countries due to the sluggish performance of end-use construction industries, resulted in a 4.6% contraction in China's total shipments in 2023. The collective impact of weakening growth, reduced confidence, entrenched deflation, a real estate downturn, and volatile financial markets contributed to keeping the price of Calcium Formate at lower levels.

The petrochemical markets in Asia exhibited a sluggish performance during the Lunar New Year holiday, with a few factories closed, reflecting a stagnant market environment and a less optimistic outlook for the industry. China's economy suffered a blow as factory activity slowed, indicating further signs of sluggish momentum. This overall scenario presented challenges for the construction and related sectors, impacting the demand and pricing dynamics of Calcium Formate in the market.

Buying enthusiasm was subpar, and demand from importing nations remained sluggish. Dow's Q4 2023 report highlighted a year-on-year net sales decrease in the downstream Polyurethanes & Construction Chemicals business, driven by lower prices globally. Sequentially, net sales declined due to reduced local prices on a global scale. Additionally, the price of Calcium Formate underwent a 7% drop in February 2024, settling at USD 465/MT FOB Qingdao. The temporary closure, customary during the Lunar New Year holiday, is expected to conclude with factories resuming operations post-festivities. ChemAnalyst projections indicate that Calcium Formate prices in the Chinese market are poised for a gradual and steady movement in the first quarter of 2024.

This anticipation aligns with the upcoming national meeting in March 2024, where the ruling Chinese government is set to announce economic growth targets. The event is expected to be attended by thousands of delegates from across the country, fostering an environment conducive to an improved demand for Calcium Formate, especially from importing countries.