The US Calcium Chloride Prices Edge Higher Amid Supply Constraints
- 17-Jan-2025 3:45 PM
- Journalist: Alexander Pushkin
Throughout December and early January, Calcium Chloride prices in the U.S. experienced a modest rise, attributed to limited supply despite weak downstream demand, particularly in the paints and coatings sector. November's sluggish trading volumes and constrained end-user purchasing power further dampened market sentiment, offsetting efforts to lower prices. Calcium Chloride’s Upstream, Calcium Carbonate prices are expected to trend upward, driven by feedstock cost pressures. However, significant price growth remains restrained due to subdued demand, elevated shipping costs, and limited consumer buying power.
Calcium Chloride production facilities maintained stable to slightly reduced operational rates in response to weak demand. The broader U.S. manufacturing sector showed signs of easing its downturn, though the U.S. economic indexes reflected ongoing struggles in chemical production. Reduced construction activity led to lower orders for adhesives, coatings, and sealants, while export demand declined due to economic slowdowns in Europe. Calcium Chloride rising input costs due to its its raw material prices and supply chain disruptions, squeezed profit margins across the supply chain. Nonetheless, chemical producers retained staffing levels, reflecting cautious optimism for a future demand recovery.
The U.S. construction sector grappled with reduced activity in December, marked by a decline in job openings, particularly in residential projects. Data from the Bureau of Labor Statistics' Job Openings and Labor Turnover Survey (JOLTS) revealed a slight uptick in open construction positions in November, suggesting a modest recovery. However, job openings remained significantly lower than a year ago, reflecting high interest rates and decreased consumer confidence. The construction job openings rate rose to 3.2% in November, while the layoff rate held steady at 2.1%. The quits rate dipped to 1.7%, underscoring a cautious approach among workers amid current economic challenges.
Infrastructure spending on roadways, bridges, and public transportation is likely to support construction demand, countering challenges in the housing market caused by high mortgage rates. Urban development and public-private partnerships for large-scale projects are expected to drive higher pricing in construction. Meanwhile, inflationary pressures on labour and materials may persist, though weaker demand in certain sectors could result in competitive pricing strategies.
Looking ahead, ChemAnalyst projects a potential rise in Calcium Chloride prices, driven by anticipated growth in the construction sector and higher Calcium Chloride feedstock Calcium Carbonate costs. However, challenges such as persistent inflation in raw materials, ongoing Calcium Chloride supply chain disruptions, and constrained demand could hinder a rapid recovery. Despite these obstacles, the Calcium Chloride market stabilization of price reductions and sales incentives, coupled with modest improvements in buyer traffic, indicate a gradual recovery for the Calcium Chloride market heading into 2025.