Demand Concerns End Global Quicklime Prices on a Bearish Note During September 2023

The Quicklime price trajectory witnessed pessimistic downstream offtakes in the Steel industry across the global market during September 2023. The Quicklime market players paused the procurement activities in the line of ample stock availability. In September 2023, the Quicklime market experienced a decline in demand from the steel industry, leading to a decrease in expectations for market momentum. This drop can be attributed to the overall economic slowdown.

The Quicklime prices in the USA were low in September 2023 due to the persistent downturn in the procurement movement in the downstream construction industry and the latest September slowdown in steel consumption in the US market. The US downstream construction sector is suffering from high mortgage rates and rising interest rates by the Federal Reserve of the USA. As a ripple effect, Quicklime utilization in the downstream industries continued experiencing sluggish consumer confidence in the US market towards the termination of September 2023. Moreover, the US central bank is anticipated to raise rates in the coming quarter, and deteriorating Quicklime offers from the housing market as these higher rates make housing unaffordable to US consumers. In addition, on the steel demand side, the US steel producers opted to slow down the production run rates amidst the automakers' union strike in the USA during September 2023. Therefore, the market participants' outlook for Quicklime prices is based on concerns about the weakening downstream demand and fear of recession in the country towards the end of the year.

Similarly, the weakening eurozone downstream demand momentum caused concerns about the Quicklime market situation amidst bearish economic conditions. The European Quicklime market in September 2023 was also marked by a contraction in exports and deterioration in manufacturing activities amidst a cautious approach towards surging crude oil values. The drop in the construction industry has limited the Quicklime demand from the end-user steel offtakes in the European market. Hence, the market players have opted to reduce stocks by reducing prices amidst rising competitive pressures in the regional market.

As per the ChemAnalyst, Quicklime prices might dip for the coming weeks across the global market due to a marginal change in downstream steel segment demand and surplus supplies. Meanwhile, the downstream production challenges may weigh on the Quicklime price dynamics amidst elevation in the crude oil future values. It is expected that prices will move down despite attempts by the manufacturer to increase offers in the line of low demand and large volumes of cheap-cost imports in October 2023.