For the Quarter Ending September 2024
North America
In the third quarter of 2024, the Calcium Acetate market in North America experienced a period of moderate growth amidst mixed market conditions. While supply-side pressures were manageable, the market grappled with tepid downstream demand and cautious purchasing trends, leading to stable but limited transaction volumes overall.
Price recovery was notable after a prolonged downturn, with sporadic upticks driven by increased downstream orders and improved shipment dynamics. End-user negotiations saw slight upward adjustments, reflecting consistent consumption across sectors where feedstock acquisition remained favorable.The rising cost of Acetic acid , a key raw material, added pressure to pricing structures, pushing Calcium Acetate prices upward.
Nevertheless, mid-quarters witnessed a dip in import prices, partly due to weakened demand in critical sectors like pharmaceuticals and preservatives. This decline, alongside oversupply concerns, economic slowdown, increased availability of cheaper alternatives, and currency fluctuations, exerted downward pressure on market prices, influencing purchasing patterns among cautious buyers. Shorter supplier lead times and restrained inventory purchases further highlighted market hesitancy. As the quarter drew to a close, a slight recovery in end-user demand balanced out excess inventories, providing some stability to the market.
APAC
In Q3 2024, the APAC region witnessed a notable uptrend in Calcium Acetate pricing. Market dynamics were influenced by various key factors, such as strong demand from multiple sectors, limited supply, and favourable cost-support from raw materials. These factors collectively contributed to the price surge observed throughout the quarter. In China specifically, which experienced the most significant price fluctuations, the pricing environment reflected a positive trajectory. The quarter showcased a correlation between increasing temperatures, heightened demand for Calcium Acetate, and a surge in production costs ahead of varied feedstock acetic acid prices. However, the market witnessed a steady drop in the month of august 2024 with supply side balanced by the overall demand dynamics. With respect to the supply aspect concerning the market sentiments, following a continuous upward price trend, Inventories concerning the Calcium Acetate. were high, with limited inquiries arriving from the end-users. This surplus strained supplier, particularly regarding storage costs, compelling merchants to reduce prices to offload excess stock. While some market support came from maintenance activities and modest downstream purchases, Despite a slight decline in the middle of the quarter, the overall trend remained upward. The quarter-ending price of USD 930/MT for Calcium Acetate IR Grade FOB Shanghai in China, signifying a stable and positive pricing environment.
Europe
In Q3 2024, the European Calcium Acetate market exhibited a largely stable price trajectory, akin to patterns observed across North America. Germany led the region in price adjustments, reflecting intensified market engagement, with increased trading volumes, high inquiry rates, and strong participant engagement. Price growth was driven by a rise in bulk purchases, steady costs for key raw materials maintaining production expenses, and increased inquiries from downstream poultry sectors. Export volumes from major producers rose, with traders focusing on profitability amid tightening logistical channels and elevated freight costs, particularly affecting Calcium Acetate imports from China. Mid-quarter, however, the market encountered a steady price downturn, influenced by reduced production costs as energy prices dropped and acetic acid became less expensive. Additionally, weaker demand across multiple sectors, notably in food preservatives and pharmaceuticals, put downward pressure on the market. Despite these factors, the quarter closed with a modest 1% increase in Calcium Acetate prices from the previous quarter, reflecting the mixed dynamics of rising logistics costs against a backdrop of softening production and demand pressures. This resulted in an overall steady but cautious market outlook across Europe.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Calcium Acetate market followed the market trend witnessed in key producing nations. The quarter initiated witnessing an optimistic trend with prices rising at a steady level. Trades within the US market focused on bulk purchasing ahead of increased demand from end-users. This was further attributed to a slight ease in freight charges and continuous appreciation of the dollar against the producing nation’s currencies. However, the market witnessed an upside-down trajectory as May commenced. This downward trajectory of prices was initially triggered by a gradual reduction in overseas market trade momentum, as traders grappled with higher inventories accumulated over the past months. This trend was further amplified by the ramped-up production capacity of manufacturers across the Apac region, particularly China, along with the entry of new players into the market. The resulting surplus supply exerted downward pressure on export prices, intensifying competition among traders. In response to the evolving market conditions, manufacturers were compelled to lower their prices in a bid to attract customers and maintain their global market position. This strategic move was further influenced by a discernible shift in consumer purchasing sentiments towards alternative excipients, such as calcium propionate and sorbic acid. The altered preferences created a supply-demand imbalance among traders in the regional market, dampening overall market transactions during May. This trend continued until the final weeks of June, with traders being highly concerned about the higher stockpiles at the warehouses. The terminal market consumption remains at a lower level, with downstream purchasing enthusiasm notably weak. This lack of robust demand is a critical concern, as it suggests that the broader economic improvements have not translated into increased consumption of Calcium Acetate. Overall, the correlation between supply and demand further showcased a consistent surplus, compelled traders to adopt aggressive pricing strategies throughout the month to prevent further product deterioration and higher cost of storage, resulting in a continuous price drop even in June.
Asia Pacific
The APAC region particularly China experienced a significant decline in Calcium Acetate prices during the second quarter of 2024 with a steady rise witnessed at the beginning of the quarter. In April, the market dynamics of Calcium Acetate demonstrated a sustained upward trajectory in trade originating from China, driven by a continuous increase in demand from downstream and overseas sectors including food, pharmaceuticals, water treatment, and others. On the demand side, inquiries from the overseas market continued to show optimism, supported by higher imports owing to a persistent depreciation of the Chinese Yuan against the US dollar, which bolstered the market's overall resilience and resulted in more competitively priced material availability globally. Moreover, the reduction in freight costs from China has further bolstered the overall rise in market transactions among buyers and suppliers in trading nations, facilitating increased export momentum of Calcium Acetate in April, supporting the overall positive trend. However, the trend was reversed as the quarter moved forward in May 2024. This downturn was primarily driven by weakening international trade and high inventory levels. Various market experts stated that ahead of previously increased production capacity by manufacturers owing to anticipated higher inquiries, resulted in an oversupply situation, which was further intensified by new market entrants. This resulted in an affected market trading atmosphere as inquiries did not meet the market expectations concerning the supply side. As a result, in order to maintain market share and attract customers amid rising competition and changing consumer preferences, manufacturers strategically focused on reducing their exporting prices. Moreover, as of May 2024, With respect to the market activity in general, the National Bureau of Statistics’ Manufacturing Purchasing Managers’ Index (PMI) fell from 50.4 in April to 49.5 in May, undershooting market expectations. Consequently, the index moved below the 50.0 no-change threshold, signaling a worsening in manufacturing sector operating conditions from the previous month. The headline prints chiefly reflected worse readings for new orders and output. The enthusiasm for procurement remained weakened, and the price of new orders was close to cost. Further, manufacturers considerably weakened their profit sentiment to destroy their inventories. This uncertainty could have led to a cautious approach in purchasing decisions, as buyers were hesitant to place large orders or commit to long-term contracts with Chinese suppliers, creating significant imbalances in supply-demand dynamics and traders grappling with higher inventories. This trend continued to follow until the final weeks of June, marking the bearish trend in terms of international market transactions, with an increased prevalence of a "buy up" rather than "buy down" mentality among purchasers.
Europe
During the entire Q2 2024, the European Calcium Acetate market experienced an overall downturn due to multiple converging factors that exerted downward pressure on prices, specifically, Germany witnessed the most pronounced price fluctuations within the region. The overarching theme for this quarter was the interplay of reduced downstream purchasing in key end-users and elevated freight charges ahead of the geopolitical stabilization affecting supply chains. Following the market trend of key producing nations which grappled with heightened inflationary pressures, constrained purchasing power, and suppressed demand across various end-user sectors, particularly the food industry, the importing prices of calcium acetate dropped throughout the quarter with merchants highly resistant to newer procurements. The market's bearish stance was exacerbated by substantial pre-existing inventories which were held in the initiation of the quarter I.e., April 2024. The market witnessed a significant rise in end-user procurements. Anticipation of further rise in demand and the notable plant shutdowns in key producing nations resulting in an interruption at major production facilities, further disrupted the supply chain, leading to higher procurements and reduced market activity. However, as may commence, the market demand did not materialize as per the expectations, thereby supporting a significant drop. This was further supported by a depreciation of the euro against the dollar which kept the imported cost of the goods on the northerly side, thereby creating reluctance among the traders for newer procurements. This trend continued until the end of June, with traders gradually focused on clearing their inventories instead of newer procurements. Overall, the pricing environment for Calcium Acetate in Q2 2024 in Europe exhibited positivity, with pronounced prices reflecting fluctuations stemming from limited demand, higher supplies, and trade disputes leading to higher costs of transportation.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the Calcium Acetate market in North America underwent dynamic pricing shifts influenced by the price trajectory witnessed in the exporting nations. Particularly in the USA, where price fluctuations were most notable, market conditions played a pivotal role in shaping the overall trend. Various challenges including continuous heightened inquiries, insufficient inventories, export restrictions, and elevated freight charges continued to contribute to the market's complexity.
The USA's dependence on Calcium Acetate imports from China made it vulnerable to fluctuations in Chinese provinces, significantly impacting the domestic market. Production halts during the Lunar New Year and Spring Festival celebrations in major exporting regions led to constrained shipments and limited inventories in the US, prompting market players to adjust quotations to safeguard profit margins. Upon the resumption of production activities in China, there was a surge in demand and bulk procurement of Calcium Acetate, further intensifying supply-demand dynamics. To this, Geopolitical tensions and trade disruptions added another layer of complexity to market sentiments. Escalating container freight rates exacerbated the price surge, particularly affecting industries reliant on maritime transport as these included continuous heightened shipping costs, order cancellations, and delays in container movement which considerably affected the overall trade momentum. Moreover, moving towards the end of the quarter, traders and suppliers witnessed some resiliency in the market as freight charges eased considerably compared to the previous month which befitted the merchants to purchase the goods at a lower cost. Lastly, the National Oceanic and Atmospheric Administration warned of potential Mississippi River congestion due to warm, dry spring conditions and reduced winter snowpack, raising concerns about future shipment disruptions. Consequently, US market participants have increased inquiries from exporting nations to prevent future shortages, further driving up prices.
Asia Pacific
In the Asia-Pacific region, particularly in China, the first quarter of 2024 has seen an overall optimistic trend in Calcium Acetate pricing. Influenced by downstream demand, feedstock costs, and supply chain disruptions, prices have slightly increased compared to the previous quarter, indicating some stabilization. This aligns with a significant rise in downstream purchasing and fluctuating feedstock prices, notably for acetic acid. The depreciation of the Chinese currency against the dollar has made Chinese goods more competitive, potentially boosting exports. However, the market has also faced challenges with insufficient inventories, compounded by a temporary trade slowdown during the Lunar New Year festivities in mid-February, exacerbating the situation. Post-holiday, there was a surge in purchasing activities driven by significant domestic and international orders. As a result, the post-festive period often witnesses a rebound in prices as production gears up to meet renewed demand, and merchants tend to sell their goods at a higher cost to make up for previous profit losses. Continuing this trend further in March results in a notable uptick in export momentum from China, with traders actively witnessing a higher arrival of quotations from importing nations, thereby supporting an overall optimistic market trajectory, strengthening industrial activity, and influencing calcium acetate prices. In China, the latest quarter-ending price for Calcium Acetate IR Grade FOB Shanghai was USD 992/MT.
Europe
In Q1 2024, the Calcium Acetate market across Europe experienced significant pricing dynamics, following the trajectory of exporting nations, primarily in the APAC region. The overall trend showed a notable increase in prices, supported by factors including higher inquiries, insufficient inventories, trade disruptions, and currency fluctuations. One driving force behind this price escalation was the upward trend witnessed in exporting nations. As Germany imports Calcium Acetate, the impact of pricing strategies adopted in APAC extended into the German market, reshaping the pricing framework for Calcium Acetate in the region. German market participants showcased adaptability amidst evolving global dynamics, strategically adjusting pricing strategies to match industry standards. This adaptation was evident, particularly in response to fluctuating feedstock prices, notably Acetic acid, in major producing and exporting regions. The resulting increase in input costs added complexity to market dynamics, fostering a favorable cost environment across the supply chain.
Furthermore, the export landscape faced challenges as shipping lines rerouted vessels through the Cape of Good Hope to circumvent disrupted Red Sea trade routes amid geopolitical tensions. These route alterations led to heightened shipping expenses, order cancellations, container movement delays, and general uncertainty about future developments. The notable spike in container freight rates significantly affected pricing dynamics, especially for industries heavily reliant on maritime transportation, exacerbating difficulties for market participants. Additionally, the depreciation of the Euro against the US Dollar further strained market conditions, benefiting merchants by allowing them to trade goods at higher profit margins. Overall, the pricing environment for Calcium Acetate in Q1 2024 in Europe exhibited positivity, with pronounced prices reflecting fluctuations stemming from limited supplies, trade disruptions, and persistent heightened inquiries.
For the Quarter Ending December 2023
North America
In the final quarter, the pricing dynamics of the Calcium Acetate market exhibited a diverse pattern. Initial reductions were observed at the commencement of October, succeeded by a noteworthy upswing in mid-Q4, and experienced another decline towards the conclusion of the quarter. The primary driver behind these fluctuations was the ample availability of Calcium Acetate within the domestic market. Additionally, downstream sectors, crucial consumers of Calcium Acetate, have increasingly embraced a just-in-time purchasing strategy.
Nevertheless, in November, sustained economic growth and heightened consumer spending sparked a revival in downstream demand for Calcium Acetate in the USA. This resurgence was evident through robust retail sales and growing consumer confidence indicators, prompting suppliers to destock their inventories at elevated costs. Furthermore, the USA, as a significant importer, mirrored the pricing trajectory of key producing and exporting market players to maintain market stability. Downstream enterprises adjusted their prices to address inflationary pressures, partly driven by escalating costs of essential input materials such as energy and other charges.
These factors, coupled with global logistical challenges like port congestion and container shortages, posed obstacles to the seamless transportation of Calcium Acetate from production centers to downstream markets. As the fourth quarter approached its conclusion, the market witnessed a noteworthy downturn in the cost of Calcium Acetate. The prevalent demand scenario was marked by its low nature, indicating subdued market appetite. Market participants proactively responded by strategically selling their products at discounted rates, aiming to deplete stockpiles before the year's end. Adding complexity to the situation were upstream factors, specifically the decline in Acetic acid prices, intensifying the broader downward trend in Calcium Acetate prices.
Asia Pacific
In the Asia-Pacific (APAC) region throughout the fourth quarter of 2023, the Calcium Acetate market underwent a fluctuating trajectory characterized by an initial pessimistic trend, followed by an ascent in the middle of the quarter, and a subsequent significant decline as December 2023 concluded. In the initial phase, during October 2023, the country experienced a downturn due to diminished sales in industries reliant on Calcium Acetate. Both domestic and international suppliers encountered a dearth of new inquiries, contributing to a less optimistic market outlook. On the production front, there was relatively low manufacturing activity, with producers focusing solely on demand-driven production due to ample product availability. Additionally, the depreciation of raw material prices played a role in influencing market dynamics during this period. Moving into November 2023, a steady rise in downstream demand emerged, fueled by increased consumption and a slight uptick in consumers' willingness to make purchases in both domestic and foreign markets. Businesses began expressing a more positive outlook for the future, resulting in heightened investment spending. On the overall supply side, local buyers continued to submit substantial orders as the consumption of Chinese Calcium Acetate witnessed an increase among nearby manufacturers, a trend balanced by sufficient stock levels among merchants. As the fourth quarter drew to a close, prices experienced a considerable drop, indicating a steady decline with higher inventories available in warehouses. The primary driver behind this downturn was a discernible reduction in orders, both from regional and overseas markets. This resulted in a surplus of Calcium Acetate, prompting producers to take drastic measures to clear inventory and navigate the challenging market conditions. The immediate impact of this oversupply was a downward trend in prices, posing a significant threat to the profitability of Calcium Acetate producers, particularly those burdened with higher production costs. Adding complexity to the situation, the simultaneous drop in raw material prices, specifically Acetic Acid, during the same timeframe, introduced an additional layer of intricacy to the pricing dynamics for Calcium Acetate. This decline in Acetic Acid prices further pressured overall pricing, making merchants hesitant to focus on further production momentum.
Europe
Throughout the entirety of the fourth quarter in 2023, the pricing dynamics of Calcium Acetate in the German market closely mirrored the market trends observed in major exporting nations, particularly in the Asia Pacific region. In October, prices witnessed a decline across the region, primarily influenced by the abundant availability of Calcium Acetate in the domestic market. The diminished purchasing momentum was a consequence of the Euro's appreciation against the USD, causing local consumers to hesitate due to the prospect of higher prices. Concurrently, the market grappled with an oversupply situation, resulting from accumulated stockpiles and ample Calcium Acetate inventories. This surplus exerted pressure on the market, leading to a slowdown in production and impeding the introduction of new supplies. Moreover, lower-than-anticipated new orders in the region compounded the already pessimistic market outlook for Calcium Acetate as of October 2023. However, in November, there was a modest economic rebound, particularly evident in key sectors such as pharmaceuticals, showing signs of growth. Furthermore, downstream enterprises adjusted their prices to counteract inflationary pressures, fuelled in part by the escalating costs of essential input materials like energy and raw materials. These factors, coupled with global logistical challenges such as port congestion and container shortages, impeded the seamless transportation of Calcium Acetate from production hubs to downstream markets. Downstream panel factories engaged in destocking activities, swiftly clearing their stocks at an accelerated rate. In addition, the rising cost of upstream Acetic acid further supported the overall optimistic market outlook during November, maintaining Calcium Acetate prices on the higher side. However, in December 2023, the slight decline in Calcium Acetate prices in the German market garnered attention from industry experts and analysts, indicating a deviation from earlier projections. The initial forecast, relying on the expectation of a surge in inquiries from the downstream sector prompting proactive excipient accumulation, did not materialize. The available supply in the market proved sufficient to meet current demand and had a minor impact on market dynamics. Additionally, domestic acquisitions were predominantly executed on a just-in-time basis, sustaining a continuous, albeit restrained, trade momentum in the short run.
