Gloomy Downstream Demand and Plummeting Purchases Slump the Global Calcium Formate Prices

Qingdao, China- In the Asian market, Calcium Formate prices slumped this week due to high inventory levels and a slump in overseas trading activities. Spot discussions declined this week as buyers projected purchases while keeping an eye on the feeble demand and gloomy downstream outlook. As market trade decreased, providers only bought cargo on a need-to basis.

The market fundamentals remain affected in the Chinese market, with supply exceeding demand. It was noted that constrained trade dynamics prevented limited amounts of Calcium Formate from leaving Qingdao's ports for other Asian regions. The limited restocking activity was observed in the market as the downstream construction sector continued to function at reduced rates, notwithstanding the slowdown in demand. With the week ending on 12th May, the Calcium Formate in China slipped to USD 580/ton FOB Qingdao with a weekly decline of 2.52%.

The USA also suppressed the Calcium Formate with lackluster demand and feeble trading dynamics. Concerns of an impending recession and the exacerbation of a financial crisis contributed to the drop in the market of Calcium Formate. The fundamentals of demand from the downstream construction industry have been overwhelmed by the possibility of additional increases in interest rates. The terminal market's queries fell sharply, dampening market sentiment. In addition, the feedstock Calcium Carbonate and Formic Acid market also followed a declining trend, reducing the production cost of Calcium Formate among the ventures.

According to ChemAnalyst, the price of Calcium Formate across the globe is expected to decrease due to oversupplies in the regional market. Sufficient container availability and weak freight charges will further remain the factor that will drag the prices for the short term. In the USA, tight demand fundamentals, sufficient product availability, and a fragile feedstock market will remain the key factors that will drag the trading activities of Calcium Formate. Coupled with less export cargo from China to the overseas market in May, the Calcium Formate port inventory will increase.