In the Chinese market, Calcium Formate prices have continued to decline in the early weeks of July 2024, reflecting the downward trend seen in the previous month. Currently, the market is marked by weak cost support from feedstock formic acid and lower energy prices, leading to limited trading activity in China’s Calcium Formate sector. As a result, industry participants are adopting cautious procurement strategies while facing ongoing imbalances between supply and demand.

Seasonal factors have significantly influenced market dynamics, particularly heavy rainfall that has hampered construction activities, adversely affecting downstream sectors like cement and other industries reliant on Calcium Formate. Furthermore, China's coal market has struggled under the relentless rains in South China, leading to sparse spot coal transactions at northern ports and further reducing production costs for Calcium Formate. Despite a 6% rise in upstream crude oil prices in June which was driven by OPEC+ production cuts and increased summer fuel demand in the US. The high inventory levels and low energy costs have kept Calcium Formate production costs suppressed. Supply chain disruptions on major trade routes, alongside ongoing geopolitical tensions and port congestion across Asia, have further hammered the exports.

As of Q2 2024, Calcium Formate prices had initially increased due to high production costs and moderate demand. However, with recent high production levels and substantial inventory, demand has weakened, leading to a quiet market atmosphere with minimal adjustments to supply and demand. New orders are being placed only as necessary, reflecting the subdued trading environment. According to the General Administration of Customs, exports of Calcium Formate in May 2024 saw a 7.6% year-on-year increase, providing some temporary support to the market. Nevertheless, a significant drop in feedstock formic acid prices and average downstream operating rates have resulted in weak demand for Calcium Formate raw materials and a lackluster terminal market.

The textile industry, a key consumer of formic acid, is also facing low global demand, placing additional downward pressure on Calcium Formate prices. The downstream cement sector has been particularly impacted by heavy rainfall over the past month, disrupting construction activities and affecting Calcium Formate demand. This decline is also being observed in other APAC nations like India. The overall downturn has led to elevated inventory levels and weak demand within the market, further exacerbating price declines. Both domestic and regional markets, including India and other Asian nations, are experiencing oversupply, reinforcing low demand for Calcium Formate across the board.

As per ChemAnalyst, the Calcium Formate prices in the upcoming weeks are anticipated to decline amidst the sustained high inventory levels and ongoing rainy weather in the region. The retailers are not expecting a higher number of inquiries amidst the gloomy demand outlook impacting the final prices of the commodity in the regional market.