Global Quicklime Prices Oscillate Due to Fluctuations in Supply and Demand
- 31-May-2023 2:56 PM
- Journalist: Patrick Knight
Shanghai, China- The supply and demand dynamics disruption in the Global Quicklime market helped the price trend fluctuate in April 2023. In the Asian market, Quicklime markets have been on a downswing since the start of this year. The gradual increase in stocks has been one of the main culprits behind the weaker performance of Quicklime. In the European region, Quicklime producers had announced an increase in prices for April 2023 shipment in the wake of low operating rates and the depletion in inventory level.
In China, weak buying momentum and ample cargo stockpiles were the main factors contributing to the drop in Quicklime pricing. Buyers in the region delayed additional material purchases since they had sufficient inventory levels in their warehouses. Reduced Quicklime bidding and limited purchase in the domestic market were factors in the downward price trend. The latest revelation by large manufacturing units that they decreased their operation rates to avoid growing stocks further bolsters the negative demand situation.
In Germany, the demand for downstream iron and steel sectors' products has stabilized due to quick product consumption, which has led to stability on the higher end of the Quicklime market. The market saw a gain in addition to an increase in the production rate brought on by improving market fundamentals. During April 2023, the price of Quicklime in Germany surged to USD 210/ton FD Hamburg with a monthly incline of 1.44%.
Considering sparse trade activity and weak product demand from the downstream paint and coating sectors, ChemAnalyst predicts that the price of Quicklime will move downward in the next weeks. The price of Quicklime is predicted to decline in the next weeks since there will likely be enough supply on the market, and a boost in manufacturing will likely slow down the price trend. With few bids and offers from foreign providers, quicklime exports from China and Germany to the worldwide market are predicted to fall.
