Calcium Powder Prices Experience January Spike amid High Demand and Logistics Obstacles

In January 2024, global Calcium powder prices are experiencing an upward trend, largely propelled by continuous demand from downstream industries. Calcium powder plays a crucial role in diverse industrial applications, finding significance in sectors like food and beverages (F&B) and pharmaceuticals. The consistent demand from these industries was further heightened by amplified orders placed by consumers in anticipation of the upcoming festive season. This increased consumer activity contributed to elevated overall demand, resulting in the escalation of prices during this period.

China plays a pivotal role as the primary producer and exporter of Calcium powder, supplying it to regions, including Europe, South America, and North America. Recent data highlights a contraction in China's manufacturing sector, indicative of an ongoing economic slowdown in the world's second-largest economy. Reduced demand in the preceding month resulted in decreased manufacturing activity, leaving the market with inadequate inventories of Calcium powder for January 2024. The impending Spring Festival in February, marked by heightened consumer spending and complete production closures, added further pressure on Calcium powder supplies, contributing to additional price escalations.

In addition to these market dynamics, challenges in shipping logistics have introduced an additional layer to the situation. The conflict in the Red Sea and the Suez Canal prompted shipping companies to reroute their vessels around Africa via the Cape of Good Hope, leading to increased freight charges and heightened operational costs. These additional expenses are now being passed on to consumers in the form of higher prices, further emphasizing the global upward trajectory of Calcium powder prices.

In 2023, the U.S. economy displayed notable resilience, even in the face of elevated interest rates and a rise in inflation. The holiday season observed increased consumer spending, along with tangible improvements in real wages over the previous nine months and a significant boost in consumer confidence, laying a positive foundation for the beginning of 2024. Notably, U.S. consumer sentiment reached its highest point in January, driven by a growing sense of optimism regarding the outlook for inflation and household incomes. This improved sentiment also played a role in the increasing demand for Calcium powder in downstream sectors, consequently driving up prices.

A parallel trend is evident in the pricing of Calcium powder in the Indian market. The surge in demand for new orders, both from the domestic and international markets, exerted pressure on domestic supplies, leading to an increase in prices. Additionally, disruptions in the supply chain, attributed to factors such as transportation bottlenecks and geopolitical issues, further constrained availability and contributed to the upward trajectory of Calcium powder prices.

According to ChemAnalyst's evaluation, there is an expectation that the prices of Calcium powder will persist in their upward trend in the coming months, driven by sustained demand from end-user segments such as nutraceuticals, food, and pharmaceuticals. As a response to this scenario, market participants are likely to prioritize the replenishment of inventories, thereby maintaining an overall elevated market situation.