Ending October 2024, prices for Calcium Chloride in the U.S. market have experienced an increase, primarily due to rising raw material costs i.e., calcium carbonate, compounded by low supply levels. The ongoing rise in production expenses is influencing market dynamics, yet demand for Calcium Chloride remains steady, largely driven by its widespread applications in various sectors, particularly in construction. As construction sector demand grew, inquiries for Calcium Chloride from downstream construction industries increased, contributing to the upward pressure on prices.

In October 2024, the U.S. Housing Market Index registered an uptick, rising from the previous month and marking its highest level since June. This improvement in the index reflects a more favourable outlook for current sales conditions, and expectations for sales over the next six months have also surged, bolstered by hopes that anticipated rate cuts from the Federal Reserve will stimulate housing demand. Additionally, the index measuring the traffic of potential buyers rose, indicating greater interest in purchasing homes. Despite these positive indicators, the proportion of builders reducing prices remained relatively stable, reflecting a cautious approach amid the current market conditions.

Nevertheless, challenges persist, such as escalating construction materials’ costs and a decline in overall U.S. construction spending. However, improved sentiment among builders and fewer price concessions may enhance demand for Calcium Chloride in the near term. Analysts suggest that with production costs for raw materials (calcium carbonate) on the rise, the trajectory for Calcium Chloride prices may trend upward in the coming weeks.

Domestic production of Calcium Chloride has remained stable, with manufacturing plants operating at optimum capacity. Recent reports indicate that the supply chain for key materials is stabilizing, with inventory levels gradually replenishing to meet the increasing downstream demand. While this stabilization is expected to relieve some price pressures, the continuing rise in production costs is likely to maintain a significant influence on market dynamics.

Demand for Calcium Chloride is showing promising growth, particularly from construction-related sectors. This growth is notably attributed to increases in residential construction and nonbuilding projects, despite a slight decline in non-residential building starts. The construction industry is hopeful for further economic improvements, particularly through potential interest rate cuts, which may drive more robust demand for Calcium Chloride in the coming months.

According to the ChemAnalyst Database, Calcium Chloride prices are expected to rise further due to increasing production costs linked to raw material calcium carbonate prices. The current calcium carbonate market is facing supply chain challenges, which are exacerbating production costs. Coupled with improving demand from the downstream construction sector, this situation indicates a likely upward trend in Calcium Chloride prices soon.