During the first week of November 2024, Calcium Formate prices across the APAC region maintained stability amidst weak demand from the downstream cement and concrete sectors and limited cost support from feedstock formic acid. This sluggish demand was reflected in key markets, such as China, where the struggling real estate sector continued to hinder construction activity, while India’s construction sector faced intensified challenges due to seasonal and economic pressures. This stability in Calcium Formate pricing comes amid broader industry-wide headwinds for the chemicals sector.

In China, the manufacturing industry for chemical raw materials and products reported a 4% decline in margins year-on-year for the first nine months of 2024. According to the National Bureau of Statistics data that released on 27^th October 2024, enterprises above designated size generated a total profit of 5228.16 billion yuan from January to September, marking a 3.5% year-on-year decrease. The chemical industry specifically saw profits fall to 301.71 billion yuan, underlining the challenges facing the sector, including overcapacity and the significant slowdown in the real estate market. The downstream demand from construction materials, which impacts Calcium Formate, remains notably weak due to limited new project initiations and cautious spending on existing developments.

In India, the Calcium Formate market has also experienced stagnant demand. India Cements Ltd (ICL), a major player in the downstream cement sector, reported an 18.4% decrease in revenue in its Q2 ended September 2024, attributing the decline to falling cement prices and increased competition. ICL widened its consolidated net loss to INR 339.13 crore for the second quarter, up from a loss of INR 80.07 crore the previous year. This downturn in the cement sector further reflects the weakened demand for Calcium Formate as concrete and cement producers face pressure on pricing and low construction activity. Additionally, JK Cement Ltd posted a 22.52% drop in net profit for Q2 ended September 2024, further highlighting the broad market challenges impacting Calcium Formate demand in India’s cement and construction industries.

Supply in the APAC region remains abundant, with producers experiencing heightened inventory levels due to low demand. Production rates for Calcium Formate have been adjusted downward to mitigate oversupply. However, despite these adjustments, the inventory buildup continues to weigh heavily on market sentiment. Traders and manufacturers are adopting a cautious approach, offering limited discounts to manage inventory pressures, as any significant price increase in Calcium Formate is unlikely without an uptick in downstream demand.

With the festive season in India and the expected post-holiday lull in demand across much of the APAC region, the Calcium Formate market is projected to maintain a stable but bearish outlook in the near term. Although some post-Diwali recovery in demand is anticipated, particularly in India, this uptick may only provide slight price support for the Calcium Formate.