For the Quarter Ending December 2024
North America
The U.S. Calcium Propionate market in Q4 2024 exhibited a volatile yet predominantly upward pricing trend, driven by strong demand and persistent supply constraints. October opened with sharp price hikes due to robust domestic and export demand, coupled with inventory shortages exacerbated by China’s Golden Week holiday. Rising production and freight costs, along with a weaker U.S. dollar, added upward pressure. Mid-October saw a brief price dip from oversupply and buyer hesitation, but the market rebounded sharply by late October as inventories tightened and demand strengthened.
November sustained an upward trajectory, with prices rising consistently. The increase was fueled by restocking activities ahead of festive demand, constrained inventories, and escalating production costs due to higher Propionic Acid prices. Supply chain challenges, including shipping delays and tariffs, intensified market volatility.
In December, prices fluctuated but ultimately trended higher, propelled by rising Chinese export prices and strategic stock adjustments. Robust demand in nutritional applications and pre-tariff purchases further supported the increases. Despite port congestion and logistical inefficiencies, the market remained resilient. Overall, Q4 2024 reflected a dynamic and bullish market, emphasizing the need for strategic sourcing and inventory management.
Asia Pacific
The Calcium Propionate market in Q4 2024 showed an overall upward trend followed by brief fluctuations in prices due to global supply-demand dynamics and external factors. Early October saw stable conditions, with a temporary boost in pricing from increased demand due to the Golden Week holiday in China. Despite ongoing oversupply and weak consumer sentiment, prices began rising in the second week of October, driven by high international quotations and growing production costs, particularly from propionic acid and crude oil.
However, by mid-October, market conditions cooled, with price drops as demand from downstream sectors weakened. As November progressed, the market rebounded, with a steady rise in prices due to stronger export activity and increasing demand from food preservative sectors. However, oversupply continued to exert downward pressure by the month's end.
By December, aggressive destocking and declining feedstock prices led to price volatility, despite some price increases due to tightened supply conditions. The month ended with prices settling lower after a peak mid-December, reflecting both strong demand and strategic inventory adjustments. The market saw price fluctuations amid adjustments, but the overall trend indicated moderate bullishness.
Europe
The German Calcium Propionate Market in Q4 2024 witnessed mixed trends, characterized by early gains followed by price corrections, ending the quarter on a subdued note. The quarter began with notable price hikes as demand surged amid supply chain disruptions, particularly from Asia. Buyers stockpiled inventories ahead of China's Golden Week, while rising import costs and currency fluctuations further fueled prices. By mid-October, prices climbed to $1,190/MT CFR Hamburg due to tightening stock levels and robust downstream demand.
However, as November progressed, market conditions shifted. Soft demand, oversupply from prior stockpiling, and lower logistics costs pushed prices down. By late November, prices briefly rose to $1,220/MT, driven by global supply tightness and increased procurement activity. Yet, December brought renewed price weakness, with a 1.23% decline to $1,205/MT CFR Hamburg. This reflected subdued demand, pre-holiday slowdowns, and cautious purchasing behavior across the Eurozone.
Overall, Q4 exhibited volatility, starting strong but ending with bearish sentiment. Persistent supply chain challenges and fluctuating demand dynamics underscored the market's susceptibility to global economic and logistical factors.
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.
