For the Quarter Ending September 2024
North America
In the third quarter of 2024, the Calcium Propionate market in the USA experienced notable fluctuations in pricing, reflecting a complex interplay of global supply and demand dynamics. At the beginning of July, prices decreased, driven by lower production costs in major exporting countries, which intensified competition and prompted U.S. buyers to delay new purchases. This exacerbated supply-demand imbalances, leading to excess supply as companies liquidated stockpiles to mitigate storage costs. However, by mid-July, prices saw a modest increase, influenced by rising freight costs and supply chain disruptions that heightened transportation expenses. The third week of July marked further price hikes, driven by limited inventories and ongoing supply chain challenges. By late July, prices reflected increased market activity and optimism despite production slowdowns.
As August commenced, prices surged, propelled by increased downstream procurement activities and heightened demand. However, by mid-August, prices dipped slightly due to a supply-side outpacing of demand and increased pricing competition among traders. The downward trend continued into late August, driven by excess supply from inventory liquidations. Nevertheless, at the end of August, a significant increase occurred as demand surged ahead of upcoming festivals and concerns over rising raw material costs.
The market's momentum carried into September, with prices rising in the first week, fueled by tight supply from key exporters and escalating costs due to geopolitical tensions and a depreciating U.S. dollar against the Chinese yuan. Mid-September saw a substantial jump as low inventories and pre-festival purchasing heightened market activity. By the third week of September, prices climbed further, driven by continued demand amid ongoing supply disruptions and maintenance shutdowns at production facilities. Finally, at the end of September, prices reached a new high recorded at USD 1180/MT with an average quarterly inclination of 2.56%, marking an increase as supply constraints, geopolitical unrest, and heightened transportation costs maintained upward pressure on the market. Overall, the third quarter reflected significant volatility, with pricing movements largely influenced by supply chain dynamics, global market conditions, and geopolitical factors impacting both domestic and export activities.
Asia Pacific
In the third quarter of 2024, the Calcium propionate market in China experienced fluctuating pricing trends marked by a combination of supply and demand dynamics. Beginning in July, prices initially decreased due to a complex interplay of economic and geopolitical factors, at the start of the month. This decline was influenced by the depreciation of the Chinese yuan, increased domestic supply, and reduced global competitiveness, coupled with ongoing geopolitical tensions that disrupted trade flows and raised freight costs.
However, as the quarter progressed, the market exhibited signs of recovery, with prices rising steadily by late July and further increasing by early August. This upward movement was driven by heightened market activity, bulk procurement, and stable production costs due to consistent pricing of primary components. Despite an initial dip in demand due to cautious consumer sentiment and a contracting manufacturing sector, optimism returned as downstream demand began to pick up, leading to increased inquiries and trading activity. However, by mid-August, prices saw a slight decrease again due to subdued demand and expectations for economic stimulus amid low consumer price index figures.
The market ultimately stabilized by the end of August, driven by intensified market activity, increased procurement, and a favorable combination of stable raw material costs and rising demand. Overall, the third quarter was characterized by a cautious optimism, reflecting a resilient market adjusting to changing economic conditions and ongoing supply chain challenges.
Europe
During the third quarter of 2024, the Calcium Propionate market in Germany exhibited significant price movements influenced by various global and domestic factors. Starting in July, prices began to decline. This drop was primarily due to reduced production costs in major manufacturing nations and the liquidation of excess inventories by producers to manage storage costs and product degradation risks. The trend of falling prices continued into the second week, as buyers delayed purchases in anticipation of better pricing. By the end of July, as market participants continued to liquidate stock amid favorable procurement conditions, despite the overall market sentiment remaining weak.
However, later the prices rebounded due to global economic conditions and supply chain disruptions, particularly from reduced vessel traffic and port congestion in Asia. This upward trend persisted into August, with prices increasing, driven by escalating raw material costs and increased procurement activities across sectors. The last week of August experienced a notable increase, influenced by ongoing supply chain issues and rising raw material costs, leading to price adjustments by manufacturers.
This momentum continued into September, with a price surge of 5.66% in the first week, culminating at $1,120/MT. Factors contributing to this increase included higher production costs, currency fluctuations, and rising oil prices linked to geopolitical tensions. The upward trend continued throughout September, with prices reaching $1,153/MT with ana average quarterly inclination of 3.38%, reflecting sustained demand, low inventories, and preemptive purchasing by buyers in anticipation of seasonal demand spikes.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the North American Calcium Propionate market saw a marked increase in prices, driven by several compelling factors. Key among these were rising production costs, significantly influenced by the escalating prices of raw materials, particularly propionic acid. Additionally, logistical challenges, including disrupted shipping routes and increased freight costs, exacerbated supply chain pressures. These factors, combined with strong demand from end-user industries, collectively fueled the upward pricing trend.
In the USA, the impact was particularly pronounced, with a notable trend of rising prices. Seasonality played a crucial role, as the second quarter typically experiences higher demand due to increased activity in the food preservation and bakery sectors. The interplay between supply constraints and persistent demand further intensified the price escalation. Compared to the same quarter last year, the market reflected ongoing inflationary pressures and the challenges in balancing supply with growing demand. Within the quarter, prices in the first half were 3% lower than in the second half, indicating a steady increase as the quarter progressed.
Overall, the Q2 2024 pricing environment for Calcium Propionate in North America, especially in the USA, has been favorable for suppliers but challenging for buyers. The quarter-ending price stood at USD 1090/MT CFR New York, with an average quarterly increase of 2.09%, highlighting the strong bullish sentiment driven by supply-demand dynamics and logistical hurdles. This consistent rise suggests that prices are likely to remain elevated in the near term, reflecting a robust market environment.
Asia Pacific
In Q2 2024, the Calcium Propionate market in the APAC region experienced a consistent upward trend in pricing, driven by several key factors. Elevated production costs, primarily due to increased raw material prices and heightened energy costs, significantly influenced market prices. The post-pandemic recovery led to renewed demand from end-user industries, particularly the food and feed sectors, which further bolstered prices. Additionally, supply chain disruptions, including container shortages and logistical bottlenecks, exacerbated the supply-demand imbalance, pushing prices higher.
In China, the market saw the most significant price changes, with overall trends revealing a positive pricing environment. Seasonality played a pivotal role, with increased demand driven by summer production schedules and strategic destocking activities ahead of high-temperature shutdowns. Comparing the first and second halves of the quarter, there was a noted price increase of 0.96% on an average quarterly basis, underscoring the continuous upward trajectory. The quarter concluded with prices settling at USD 910/MT FOB Shanghai in China, marking a consistent positive sentiment in the pricing environment.
Overall, the market remained robust, with elevated prices reflecting strong demand and constrained supply, indicating a predominantly positive outlook for the Calcium Propionate market in the APAC region. The sustained upward trend in prices highlights the market's resilience and the ongoing recovery in key end-user industries. As we move forward, monitoring production costs, demand dynamics, and supply chain conditions will be crucial in understanding the future trajectory of the market.
Europe
In Q2 2024, the European Calcium Propionate market experienced a pronounced upward price trajectory, driven by several critical factors. A notable driver was the resurgence in regional demand, particularly from the food preservation sector, which saw heightened consumption levels. This increased demand coincided with prolonged supply chain disruptions, exacerbated by geopolitical tensions and elevated freight costs, collectively constraining the market's supply capabilities. Additionally, the rising costs of raw materials, notably Propionic Acid, significantly inflated production expenses, translating directly into higher market prices for Calcium Propionate.
Germany, exhibiting maximum price volatility within Europe, experienced notable trends in Q2 2024. Seasonality played a significant role, with increased industrial activity and procurement efforts during the warmer months driving demand. This demand surge, coupled with ongoing destocking strategies by traders, further fueled the price ascension. The quarter witnessed a 1.33% surge on an average quarterly basis, indicating sustained bullish sentiment. Additionally, a price comparison between the quarter's first and second halves revealed a 2% increase, reflecting continuous upward momentum.
Concluding the quarter, Calcium Propionate prices in Germany settled at USD 1040/MT CFR Hamburg, showcasing a consistently positive pricing environment dominated by demand-pull dynamics and supply-side constraints. The market's resilience amidst these pressures highlights the robust demand within the sector, underscoring the critical need for strategic management of supply chains and cost structures moving forward.
For the Quarter Ending March 2024
North America
In Q1 2024, the pricing environment for Calcium Propionate in North America was characterized by fluctuations and significant price increases. The latest quarter-ending price for Calcium Propionate in the US was USD 1030/MT CFR New York, showing an average quarterly increase of 1.07%.
The USA experienced rising prices due to various factors: production slowdowns, maintenance shutdowns, export restrictions, increased freight charges, and low inventories. Dependence on Chinese imports worsened due to disruptions in Chinese provinces during Lunar New Year, constraining supplies and raising prices. Post-Lunar New Year, global demand for Calcium Propionate surged, influenced by geopolitical tensions, trade disruptions, and increased container freight rates, causing another price hike in March. The US, a major importer, felt these effects, adjusting prices to remain competitive amid limited inventories and delayed supplies from exporting regions. Concerns over potential disruptions in the Mississippi River due to weather further intensified inquiries and pushed prices up.
The price of raw material, propionic acid, also contributed to the hike. Despite a slight decrease at the start of Q1, the Calcium Propionate market eventually saw falling prices and unified sentiment, partly due to strategic actions by the USA influencing global prices. Factors like reduced raw material costs and declining manufacturing activity in the USA led to lower prices as downstream enterprises adjusted procurement strategies.
Asia Pacific
In the first quarter of 2024, the pricing of Calcium Propionate in the Asia-Pacific (APAC) region remained mostly stable, with some fluctuations in specific countries. In conclusion, the latest quarter-ending price for Calcium Propionate in China was USD 890/MT FOB Shanghai with an average quarterly incline of 0.76%. The demand for Calcium Propionate from industries like pharmaceuticals and food processing stayed consistent, supporting prices and maintaining a positive market sentiment. In February 2024, prices increased due to higher demand and low inventories, exacerbated by production slowdowns during the Chinese Lunar New Year and Spring Festival. Rising freight costs and logistical challenges further reduced availability.
After the holidays, there was a surge in purchasing both domestically and internationally, driven by consumer confidence and favorable sentiment, with traders benefiting from the Chinese currency depreciation against the USD. Suppliers adjusted prices to match heightened demand, and traders secured bulk orders in anticipation of shortages. Additionally, the increase in raw material propionic acid prices also contributed to the rise in Calcium Propionate prices. In March, sustained demand from Chinese end-users led to higher propionic acid prices, prompting increased production. When the market reopened after the holidays, prices surged due to the production ramp-up to meet domestic demand.
The pricing trends for Calcium Propionate in the APAC region in the first quarter of 2024 were generally stable, although prices did decrease at the start of the quarter. This drop was influenced by year-end destocking activities from the previous month, which had a notable impact on market dynamics. Additionally, weakened demand downstream and sufficient inventories put pressure on Calcium Propionate pricing. In the Chinese market specifically, propionic acid prices also saw a decline due to weak demand.
Europe
In Q1 2024, the pricing environment for Calcium Propionate in Europe saw a notable positive trend with increasing prices. By the quarter's end, the latest price for Calcium Propionate CFR Hamburg in Germany was recorded at USD 1005/MT CFR Hamburg with an average quarterly incline of 0.64%, reflecting market conditions and challenges in procurement and delivery.
Several factors drove these shifts, including heightened demand from downstream sectors, supply chain disruptions, and currency exchange rate fluctuations. Germany's market, heavily impacted by the Euro's depreciation against the dollar and shortages in exporting nations, experienced shipment delays and extended lead times for Calcium Propionate availability. Geopolitical tensions and trade interruptions added further complexity, influencing overall market sentiment. Rising container freight rates, especially affecting maritime transport-dependent industries, significantly contributed to price surges.
As a key importing hub, Germany's pricing closely correlated with major exporting countries, with currency devaluation amplifying challenges for traders and buyers facing higher USD-denominated import costs alongside increased raw material prices, notably for Propionic acid. The temporary halt in mass production during China's Lunar New Year and Spring Festival exacerbated the situation, leading to heightened post-holiday order volumes and subsequent price spikes in predicting regions.
For the Quarter Ending December 2023
North America
In the fourth quarter of 2023, the North American market for Calcium Propionate, particularly in the USA, exhibited a varied performance. A key factor impacting the USA's Calcium Propionate market during this period was the surge in production costs. The rising expenses of essential input materials, such as energy and raw materials, exerted upward pressure on prices. Furthermore, disruptions in the supply chain, including port congestion and shortages of containers, impeded the seamless transportation of Calcium Propionate. This resulted in increased transportation costs and prolonged delivery lead times.
The announcement by the US Federal Reserve indicating a potential 5.5% interest rate added to the shaping of market sentiments. The proposed interest rate hike could signal reduced demand from downstream industries, potentially serving as a measure to counteract inflation. Restrictions on Panama Canal transit have begun affecting containerships for the first time, with a growing number of vessels experiencing delays expected to worsen over the next two months. The implemented limits on vessel transits since November 1 will reduce the daily transit limit from 32 to 18 for all types of vessels by February next year.
Despite being the major importer, the US market mirrored the trends of the major exporting region, maintaining a positive outlook. However, the latter part of Q4 witnessed a weak market that consolidated due to sufficient existing inventories. With decreased demand, market players were prompted to destock inventories at much lower rates, contributing to the market's feeble condition. The latest price of Calcium Propionate CFR New York in the USA for the current quarter is USD 998/MT, with an average quarterly increase of 1.48%.
Asia Pacific
In Q4 2023, the pricing of Calcium Propionate in the APAC region experienced a varied quarter, influenced by several factors. At the beginning of Q4, prices surged due to increased demand from end-users. Additionally, reduced production capacity among calcium propionate manufacturers resulted in tight supplies and limited inventory. The sudden surge in demand, driven by concerns about shortages, elevated Calcium Propionate production costs, leading manufacturers to adjust pricing strategies to sustain profits. Furthermore, strategic bulk purchases by market players aiming to replenish stocks contributed to the price increase. The heightened demand prompted many buyers to expedite their Calcium Propionate purchases, intensifying overall demand pressures during the holiday season. Meanwhile, rising prices of the raw material propionic acid, coupled with continued export success for enterprises and the resumption of factory operations post-holiday, contributed to a continuous increase in acquisition prices. The quarter concluded with the latest price of Calcium Propionate in China at USD 870/MT FOB Shanghai, reflecting an average quarterly incline of 2.08%. However, as Q4 concluded, prices decreased due to sufficient existing stock in the market, resulting in weak market sentiments and subdued prices. A noticeable reduction in orders, both from regional and overseas markets, emerged as the primary driver behind this downturn. This led to an excess of Calcium Propionate, prompting producers to implement drastic measures to clear inventory and navigate challenging market conditions. The immediate impact of this oversupply was a downward trend in prices. Adding complexity to the situation, a simultaneous drop in raw material prices, particularly Propionic acid, during the same timeframe further complicated the pricing dynamics for Calcium Propionate.
Europe
In the final quarter of 2023, the European Calcium Propionate market saw several noteworthy developments that impacted pricing. Primarily, the demand for Calcium Propionate experienced a steady rise due to seasonal consumption patterns and an optimistic outlook for offtake from the downstream sector. Market participants placed substantial bulk orders to replenish their inventories with fresh supplies. Additionally, the market was affected by disruptions in the global supply chain, leading to increased production costs and subsequently higher prices. Furthermore, Germany, as a key importer, closely mirrored the trends of the primary exporting regions, maintaining a positive market outlook. Regarding price dynamics, there was a notable average quarterly increase of 1.81%. However, the latter part of Q4 witnessed a weakened market, consolidating due to sufficient existing inventories. With a decrease in demand, market players were compelled to destock inventories at reduced rates, contributing to the market's subdued condition. In summary, the Calcium Propionate CFR Hamburg price in Germany for the fourth quarter of 2023 stood at USD 986 per metric ton.
For the Quarter Ending September 2023
North America
The North American market for Calcium propionate has witnessed a significant depreciation in the third quarter of 2023. From July to September 2023, the CFR New York prices for Calcium propionate saw a decline, going from $ 1020/mt to $956/mt, marking the end of the third quarter. This price fluctuation clearly indicated a preference for reducing price levels, resulting in an average quarterly decrease of 3.38%. The global Calcium Propionate market, during this period, found itself amidst an oversupply predicament, which in turn triggered a noticeable drop in market values. Adding to the complexity, domestic traders strategically accumulated substantial inventories of Calcium Propionate. To mitigate potential losses, these traders opted for a tactical move by lowering their price quotes, further driving down overall market prices. While the third quarter did witness a modest slowdown in inflation, mainly due to significant economic shifts in the United States, market participants remained vigilant due to the Federal Reserve's decision to raise interest rates. The decrease in Calcium Propionate prices can be largely attributed to a substantial reduction in the cost of its primary raw material, Propionic Acid in the exporting countries. This factor played a crucial role in influencing the manufacturing cost of Calcium Propionate in exporting countries. Additionally, North American countries, being the major importers of Calcium Propionate, closely mirrored the pricing trends observed in the Chinese market, where China is the major exporter. As a result, the third quarter of 2023 presents a unique opportunity for businesses and consumers alike to benefit from the decreased pricing of Calcium Propionate in the North American market.
Asia Pacific
In the third quarter of 2023, the calcium propionate market has witnessed a significant and favorable shift. Prices declined from $ 850 per metric ton in July to $820 per metric ton FOB Shanghai in September. This price fluctuation indicated a significant change, resulting in an average quarterly drop of 3.03. A key factor contributing to this change is the substantial decrease in calcium propionate prices, driven by a notable reduction in raw material costs, specifically in propionic acid, within the domestic market. The backdrop of this price reduction has been shaped by the economic landscape, notably in China, the world's second-largest economy. The Chinese economy experienced a slowdown that extended from the first half of 2023 into the second half, casting a shadow over the start of the third quarter. This deceleration can be attributed to a combination of factors, including increased deflation, a surge in youth unemployment, and weakened foreign demand. In terms of manufacturing, calcium propionate production in China has been closely tied to customer demand, adapting to market dynamics. During this period, a decrease in demand was observed, not only domestically but also from international markets. This synchronized drop in demand further bolstered the market dynamics in the third quarter
Europe
In the third quarter of 2023, we witnessed a significant shift in the pricing landscape of calcium propionate, with a slight drop from $ 980 per metric ton in July to $935 per metric ton CFR Hamburg by September. This pattern indicated a significant price decline, resulting in an average quarterly decrease of 2.85%. This change was primarily spurred by a global oversupply of Calcium Propionate, which had a profound impact on its market value. Adding to the complexity of the situation, domestic traders opted to build substantial inventories of Calcium Propionate. To navigate this challenge and curtail potential losses, they strategically decided to decrease their price quotes, effectively contributing to a broader market devaluation. The notable decrease in Calcium Propionate prices can be linked to a significant reduction in the cost of its primary raw material, Propionic acid. This pivotal shift influenced the overall manufacturing cost of Calcium Propionate in exporting countries, thereby driving prices lower. Adding to this dynamic, the European market, as a major importer of calcium propionate, and China, as a leading exporter, have closely followed the pricing trends of the Chinese market. As a result, this price decrease is reflective of the broader global market dynamics.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, sporadic fluctuations between demand and supply led to a significant drop in Calcium Propionate prices in the US market. This price is valued at the end of the second quarter of 2023 and represents an average quarterly decline of 8.61%. The US Calcium Propionate market slowed due to lower demand from downstream industries. The fact that domestic Calcium Propionate suppliers are having a sizable supply on hand that is allowing them to meet local demand. Market trading fundamentals were impacted by weak demand and high inventories. Retail sales fell due to high inflation. The major players in the market are expected to further reduce prices, which will discourage restocking by distributors and suppliers. In conclusion, the US Calcium Propionate market is facing several challenges, including declining demand, excess inventory, and falling prices. This resulted in excess inventory and forced suppliers to cut prices. Continued US economic uncertainty and rising global inflation also contributed to the decline in demand. Furthermore, the war in Ukraine is a major uncertainty for the US economy. The hypothesis is that, despite falling energy prices, there is still significant underlying inflation that is far higher than the Federal Reserve's target.
APAC
The market price of Calcium Propionate dropped significantly in the second quarter of 2023 due to weak domestic and international demand. The award was evaluated at the end of his second quarter of 2023 and was acquired with a quarterly average decline of 5.73%. Freight tariff c also increased in June, raising the index to 51.2 points. This is due to an increase in domestic and international trade. The warehouse utilization rate remained at a high level of 52.3 points in June as well. This is due to strong demand from the e-commerce and manufacturing sectors. Market conditions remained weak due to declining demand and lower purchases from the end-user industry. At the commencement of June, the Calcium propionate prices showcased a downward momentum in the Chinese market owing to the relapsing feedstock Propionic acid price trajectory. Currency fluctuations also continued to affect market development. Due to large inventories of Calcium Propionate, suppliers had to lower prices to reduce existing inventories. Some market participants are reducing inventories and improving cash flow. This halted trading and increased inventories as producers ramped up production. Calcium Propionate prices fell further as raw material suppliers offered lower prices on the spot market.
Europe
In the second quarter of 2023, the demand for Calcium Propionate decreased, leading to a decline in market prices. Calcium Propionate prices fell by an average quarterly declination of 8.21%. With the commencement of Q2 2023, the prices were low as the cost of shipping goods by sea has decreased due to recent rates between China and Europe returning to pre-pandemic levels and a major reduction in congestion, both of which influence the Calcium Propionate market. Also, the German suppliers set down antidumping policies on the Chinese market for Calcium Propionate. The availability of domestic supplies and a decrease in demand in the local as well as in the international market impacted commodity prices. Germany’s Regional Calcium Propionate market continued to be hostile throughout the second quarter. The manufacturing units have been forced to sell Calcium Propionate at lower prices, but buyers are still waiting to see if prices will drop further. Import offers have increased this week, but they remain substantially below domestic prices. European buyers of Calcium Propionate are delaying restocking due to a lack of end-user demand, and to destock their existing inventories to avoid damage. Also, considerably low consumer demand in downstream sectors and the suppliers' ability to meet local requests with their available inventories are to blame for the drop in Calcium Propionate import prices. This has led to an increase in the supply of Calcium Propionate, which has put downward pressure on prices.
For the Quarter Ending March 2023
North America
The Calcium Propionate market in Europe experienced a negative pricing trend in the first quarter of 2023. Prices were much lower at the beginning of the quarter due to weak domestic demand in Q1 2023. The high amount of inventory that domestic retailers held among themselves had a negative impact on the market situation. The market for Calcium Propionate decreased because of the significant drop in feed Propionic Acid prices and upstream Ethylene prices, which also influenced the cost of production. Weak demand from the downstream industry and an exporter excess influenced the prices of Calcium Propionate as well. Calcium Propionate values were found at USD 1390/MT CFR New York at the end of the first quarter, with an average quarterly decline of 1.21%.
APAC
The market for Calcium Propionate in the APAC region experienced an overall stable upward trend in the first quarter of 2023. At the commencement of Q1 2023, the prices decreased considerably due to sluggish domestic demand throughout Q1 2023. The abundance of inventory held by domestic retailers among themselves also had a negative impact on the market situation. The market for Calcium Propionate also shrank because of the sharp decline in feed propionic acid prices and upstream Ethylene prices, which therefore affected the price of production. Calcium Propionate values were found at USD 1075/MT CFR Hamburg at the end of the first quarter, with an average quarterly incline of 0.73%. Later in the month of February, the prices increased significantly on the back of increased demand for feed propionic acid in the beverages industry. At the same time, prices rose amid an increase in food prices due to the rise in food inflation in the country.
Europe
In the first quarter of 2023, the Calcium Propionate market in Europe had a general downward price trend. Due to weak domestic demand during Q1 2023, prices were significantly lower at the start of the quarter. The market scenario was adversely affected by the large amount of inventory that domestic retailers held among themselves. Due to the steep drop in feed propionic acid prices, which also had an impact on the cost of manufacturing, the market for Calcium Propionate also fell. The prices of Calcium Propionate were also impacted by the decline in ethylene prices upstream, which was a result of weak demand from the downstream industry and an exporter surplus. Calcium Propionate values were found at USD 1320/MT CFR Hamburg at the end of the first quarter, with an average quarterly decline of 0.52%.
For the Quarter Ending December 2022
North America
Throughout the fourth quarter of 2022, Calcium Propionate prices declined, supported by retrenched market attitudes. Due to China's Golden Week during the first week of October, imports of Calcium Propionate from that nation were constrained. Due to their huge inventories, domestic suppliers were able to meet the total demand, and offtakes in the end-user industries were similarly on the lower side during the quarter. The market was constrained for the bulk of the quarter because of feedstock pricing, Chinese Covid lockdowns, Russian turmoil in Ukraine, and other causes. However, as the economy started to expand and the ports experienced a large decline in ship backlogs following a protracted port backlog, things started to improve gradually in the second part of the year. Towards the end of the quarter, the price of Calcium Propionate was assessed at around USD 1450/MT for CFR New York in December.
APAC
Prices for Calcium Propionate declined during Q4 2022 throughout the quarter. The market trend revealed stable dynamics. The closure of industrial facilities for the Golden Week caused a steady fall in orders for China's industry-producing Calcium propionate during the first week of October. Because Chinese traders had to contend with a variety of conflicting signals following a one-week hiatus, it was difficult for the market to catch up to the modest increase observed in several downstream industries during the first half of Q4. Large stocks made it possible for domestic producers and suppliers to satisfy the entire quarter's demand. The administration amended its zero-covid rules in response to criticism and significant unrest in the nation, which once more left the nation exposed. Towards the end of the quarter, the price of Calcium Propionate was assessed at around USD 1060/MT for FOB Shanghai in December.
Europe
In the fourth quarter of 2022, calcium propionate prices declined somewhat in the regional European market. Demand in Germany remained on the weaker side throughout the quarter, which made it difficult for the pharmaceutical and nutraceutical industries to plan and stay afloat. This was in addition to rising energy and raw material prices. Despite growing energy prices and supply-chain concerns, Germany's industrial production barely increased in October. Towards the end of the quarter, the price of Calcium Propionate was assessed at around USD 1350/MT for CFR Hamburg in December.
For the Quarter Ending September 2022
North America
Throughout the third quarter of 2022, Calcium Propionate prices varied, supported by conflicting market attitudes. The regional market for calcium propionate in North America had a jump in offtake in the first part of Q3 2022 due to the expansion of bakeries and confectioneries. Additionally, the price increase of Calcium propionate was somewhat influenced by rising feedstock prices for propionic acid. The calcium propionate price has been stable because the supply rate is steady enough to meet the total demand. Prices declined in the second half of Q3, especially in the final month of the quarter, and the market trend for calcium propionate in Q3 indicated negative attitudes. Towards the end of the quarter, the price of Calcium Propionate was assessed at around USD 2270/MT for CFR New York in September.
APAC
Prices for Calcium Propionate first rose during Q3 2022 before falling later. Throughout the quarter, the market trend revealed mixed sentiments. Because China is the world's largest supplier of food additives, the escalating COVID-19 instances have significantly slowed down product supply to global markets. This has made the ongoing supply and port constraints during the quarter even worse. The estimates for reduced congestion did not come to pass; thus, it was obvious that the delays off the coast would take longer to improve. China's zero-tolerance policy, which continues to obstruct manufacturing and logistics and cause havoc with the transfer of additives and raw materials, caused supply chains to become stretched. Towards the end of the quarter, the price of Calcium Propionate was assessed at around USD 1440/MT for FOB Shanghai in September.
Europe
In the third quarter of 2022, calcium propionate prices varied somewhat in the regional European market. Furthermore, because they want to get rid of inventory, manufacturers are prepared to sell their excesses for less money. Sellers of Calcium Propionate have already started selling it at a little reduced price in accordance with this destocking strategy to prevent a sharp decline in value. The producers and traders intended to destock their current stocks toward the conclusion of the quarter. The first week of September saw constant to moderate weekly increases in Calcium Propionate prices in Germany, supported by weak downstream demand. Towards the end of the quarter, the price of Calcium Propionate was assessed at around USD 1920/MT for CFR Hamburg in September.
For the Quarter Ending June 2022
North America
An increased number of bakeries and confectionaries have surged the offtake of Calcium Propionate in the regional market in North America during Q2 2022. Furthermore, escalated feedstock Propionic Acid prices contributed to the slight enhancement in the price value of Calcium propionate. Meanwhile, the supply rate was consistent enough to cater to the overall demand and hence led to the steadiness in the prices of Calcium Propionate. After prices initially increased and decreased, the market trend for Calcium Propionate showed conflicting sentiments in Q2. The approach has further caused disruptions in the logistics and transportation networks, which greatly slowed the movement of commodities across the nation and too large international shipping ports.
APAC
During Q2 2022, the prices of Calcium Propionate initially increased and then later decreased. The market trend showed conflicting sentiments during the quarter. The rising cases of COVID-19 have largely delayed product delivery in foreign markets because China is the world's leading supplier of food additives. This has further aggravated the protracted supply and port bottlenecks during the quarter. Clearly, the delays off the coast would take longer to improve as projections for reduced congestion failed to materialize. Supply chains were strained due to China's zero-tolerance policy, which has continued to impede manufacturing and logistics and cause chaos with the transfer of additives and raw materials.
Europe
Calcium Propionate price fell somewhat in the European regional market during the second quarter of 2022. Furthermore, manufacturers are willing to sell their surpluses at a lower price because they aim to clear inventory. To avoid a rapid drop in the value, sellers of Calcium Propionate have already begun selling it at a little lower price in compliance with this destocking plan. Towards the end of the quarter, the manufacturers and traders planned to destock their present stockpiles. The prices of Calcium Propionate showcased stable to slight increment weekly in Germany during the first week of June, backed by stagnant downstream demand.
For the Quarter Ending March 2022
North America
Prices of Calcium Propionate soared in the North American market during the 1st quarter of 2022, backed by strong downstream demand. Due to changing food preferences of Americans, the consumption of packaged and processed food products has increased recently, which eventually led to higher demand for Calcium Propionate. The enhanced number of bakeries and confectionaries has also supported the surged offtake of Calcium propionate in the domestic market. Furthermore, intensified feedstock prices fuelled the prices of Calcium Propionate. Besides, skyrocketed crude oil prices, augmented freight charges, and congested ports amidst the Russia-Ukraine conflict further propelled the price value of Calcium Propionate. Conclusively, In the USA, the evaluated price value of Calcium propionate at CFR New York was USD 2477/MT during January, which escalated to USD 3179/MT in February.
Asia Pacific
Asia-Pacific region witnessed a surge in the prices of Calcium propionate during quarter 1 of 2022, on account of firm demand from end-user industries. As the consumption of bread has increased in the region, especially in developing countries like India, so is the demand for Calcium Propionate in the domestic market. Meanwhile, the enhanced production cost due to the escalated price value of Propionic Acid drove the Calcium Propionate prices upwards. Furthermore, fuelled crude oil prices, intensified logistic charges, port congestions, and cargo shortages due to the continued war tensions between Russia and Ukraine propelled the Calcium propionate prices upwards. Hence, In India, the prices of Calcium Propionate Ex-Mumbai assembled at USD 2139.76/MT during March.
Europe
Calcium Propionate prices followed the same path as they did in North America and Asia-Pacific and showcased a rising trend in Europe. The significant factors that influenced the price value of Calcium Propionate in the European market were increased demand from downstream industries and increased propionic acid prices. Owing to the Fast-moving lifestyles, the consumption of packaged and processed food has increased in several European countries, which consequently led to solid demand for Calcium Propionate in the market. Besides, soared Propionic Acid prices influenced the upstream cost involved in the production of Calcium Propionate, which further propelled its prices. In addition, the escalated crude oil prices and inclined freight charges also supported the price hike of Calcium Propionate. Thus, the assessed prices of Calcium Propionate in Germany were USD 2987/MT CFR Hamburg during January, which kept on increasing till March.
For the Quarter Ending December 2021
North America
During the 4th quarter of 2021, the prices of Calcium Propionate witnessed a significant rise across the North American region. A sharp increase in the prices of Calcium Propionate was backed by the soaring energy costs, disrupted supply chains, high freight charges, transport issues, and the Omicron spread of the coronavirus. The production costs have increased in the U.S. across all subsectors due to surging prices for commodities, transportation bottlenecks, and labor shortage, which negatively affected the margins of several food producers and processors, which further affected the Calcium Propionate prices in the domestic market. All these factors have resulted in the highest food price inflation since 2008 by approximately 6.3% year-on-year in December 2021.
Asia Pacific
In the Asia Pacific region, the prices of Calcium Propionate remained stagnated throughout the 4th quarter. In the Chinese domestic market, the Calcium Propionate pricing trend witnessed an upward trajectory backed by the firm demand and increased raw material costs. In the week ending of December, Calcium Propionate prices were assembled at USD 1800 per MT FOB Guangzhou. In India, the Ex-Mumbai prices staggered upwards in the month of November by settling at USD 2343.35/mt and then later declined in December and got assessed at USD 2179.05/mt. The increased cost of upstream Propionic Acid resulted in the increased prices of its downstream derivatives, including Calcium Propionate, in the Indian domestic market. Several Indian manufacturers stated that due to the steep rise in raw material cost, they were compelled to revise their calcium Propionate prices in order to protect their profitability across the Indian market. In terms of demand, offtakes remained stable from the downstream sectors throughout Q4.
Europe
The prices of Calcium Propionate increased in Europe during the 4th quarter of 2021, followed by the increased cost of upstream Propionic acid. The prolonged supply bottlenecks, skyrocketed commodity prices, high freight charges, and the emergence of the Omicron variant have further supported the price trend of Calcium Propionate across Europe. A hike in demand from the food and beverage industry was observed during this quarter.
For the Quarter Ending September 2021
North America
The overall market of Calcium Propionate showcased an upward trajectory in the third quarter of 2021. Consistent increment in the prices of upstream feedstock bolstered the prices of Calcium Propionate across the region during Q3. Major producers in Asia were facing difficulties in the production of Calcium Propionate which caused a decline in export volumes further affecting the US market. As per the market players, the demand for food-grade calcium propionate remained firm due to growing consumption from the food and beverage industry in Q3 2021.
Asia Pacific
The prices of Calcium Propionate rose effectively across the Asia Pacific region in the third quarter backed by the increased consumption from the downstream food and beverage industry. In the Indian market, Calcium Propionate prices observed a consistent increment in the whole of August buoyed by the astonishing hike in freight charges and surging upstream cost. Calcium Propionate Ex-Mumbai prices shot up from USD 1892/MT to USD 2019/MT in Q3 2021. Traders revealed that the availability of upstream Propionic Acid has been limited due to supply chain disruption caused by Delta variant cases in various countries. Although the situation has begun to ease however overall trade dynamics are expected to take some more weeks to pave normalcy.
Europe
In the European region, the domestic market of Calcium Propionate followed an upward trend in Q3 2021. A hike in the price of upstream Propionic acid pushed up the cost curve of Calcium Propionate across the region in this quarter. In terms of demand, it has remained firm and very well supported by the downstream food and feed preservatives industry.
