During the week ending September 6, 2024, Calcium Formate prices in China’s domestic market saw a modest increase, primarily driven by a recovery in the downstream cement industry and sustained cost support from feedstock formic acid. Procurement activities ramped up in anticipation of the Mid-Autumn Festival, a significant cultural event in China, which prompted manufacturers to boost production to meet seasonal demand. This surge quickly depleted already low Calcium Formate inventories, exerting upward pressure on prices.

In August, cement demand in China showed signs of recovery, with average shipments increasing by 2% from the previous month, although still marking an 8% year-on-year decline. High temperatures, excessive rainfall, and funding shortages, coupled with sluggish infrastructure development due to a lack of new projects, continued to strain the market. The real estate sector remained a key drag on demand, as new-home sales from China’s top 100 developers plummeted by 22% year-on-year in August. Despite these challenges, the Calcium Formate market received a short-term boost from heightened procurement activity linked to the festive season.

On the supply side, Calcium Formate production improved slightly, driven by export demand, with several factories fulfilling international orders. This alleviated some supply pressure, providing stability in the market. The broader Chinese manufacturing sector also showed signs of recovery in August, with new orders rising, but extreme weather, such as Typhoon Yagi, caused supply chain disruptions across Vietnam, Taiwan, and parts of China. This could further impact the Calcium Formate supply chain in the coming weeks, adding uncertainty to the market outlook.

Furthermore, Calcium Formate consumption continues to be supported by moderate recovery in the cement industry and steady demand from the poultry sector. Robust export performance, with an 8.7% year-on-year increase in Chinese exports, also contributed to price support. Given the current market conditions, combined with external factors such as weather-related disruptions and increased holiday demand, Calcium Formate prices are likely to continue their upward trend through September and into early October.

Looking ahead, Calcium Formate prices are expected to rise further as procurement activities increase ahead of China’s National Day holiday in October. Manufacturers often ramp up production in preparation for factory closures during the holiday, leading to increased demand and inventory build-up. Additionally, following September, demand from key Asian economies like India is projected to remain strong, driven by a post-monsoon recovery in construction activities. The festive period, combined with these external factors, could see procurement activities accelerate, pushing Calcium Formate prices higher.