For the Quarter Ending September 2024
North America
The third quarter of 2024 has witnessed a significant uptrend in Quicklime pricing across North America, with the USA experiencing the most notable price changes compared to the previous quarter. This increase can be attributed to several key factors. The current demand of Quicklime in the downstream industries is low driven by the decline in construction industry. However, recent hurricanes have resulted in significant supply chain disruption, leading to tighter supply conditions, further driving up prices.
The relationship between price changes and seasonal trends has been particularly evident in the USA, where prices saw an approximate 3% increase from the prior quarter. The market faced additional uncertainties stemming from potential strikes at ports and approaching storms in the Gulf of Mexico, which impacted purchasing decisions. Moreover, disruptions in shipping routes and congestion at ports exerted additional pressure on prices, while plant shutdowns further intensified the supply chain challenges throughout the quarter.
By the end of the quarter, Quicklime prices reached USD 221/MT, CFR Texas. This figure underscores the ongoing effects of localized disruptions as well as broader market dynamics on pricing trends within the quicklime sector, illustrating the complexity of the current market environment.
Europe
Throughout Q3 2024, the European Quicklime market experienced a downward trend in prices, influenced by several significant factors. The market witnessed a surplus in supply, attributed to stable production levels and ample stock availability. However, low demand from the downstream sectors, particularly the construction industry, continued to weigh on prices. The ongoing challenges in the construction sector, including reduced new orders and declining activity, further exacerbated the pricing decline. Additionally, logistical disruptions in major ports in Northern Europe contributed to market complexities, impacting supply chains and pricing dynamics. Netherlands, in particular, saw the most significant price changes during the quarter, with Quicklime prices experiencing a notable decrease. This trend was reflective of the overall market sentiment in Europe, characterized by weakening demand and abundant supply. The -2% price change from the previous quarter underscored the consistent downward trajectory in pricing. The quarter ended with Quicklime FD Rotterdam priced at USD 155/MT, highlighting the prevailing negative pricing environment in the region. Plant shutdowns were not reported during this quarter, further indicating the challenges faced by the Quicklime market in Europe.
APAC
The third quarter of 2024 for Quicklime in the APAC region has been marked by a significant decrease in prices, driven by various factors. The market experienced a downward trend due to subdued demand from key sectors like construction and manufacturing. Oversupply of Quicklime further exacerbated the situation, leading to a decline in market prices. In China, the market saw the maximum price changes, as the recent typhoon season, has caused significant disruption, with ongoing heavy rains worsening the situation. These disruptions have negatively impacted construction projects, leading to delays and cancellations that have reduced the demand for construction-related materials. The quarter recorded a sharp -14% decrease from the previous quarter, indicating a challenging pricing environment. Seasonality and correlation played a crucial role in price changes, with the market showing a negative sentiment throughout the quarter. Despite disruptions and plant shutdowns, the pricing environment remained negative. The quarter-ending price in China stood at USD 137/MT of Quicklime (CaO) FOB Qingdao, highlighting the persisting downward trend in pricing.
MEA
In Q3 2024, the Quicklime market in the MEA region witnessed a significant decline in prices, with the United Arab Emirates experiencing the most notable changes. Several factors contributed to this downward trend. This reduction in prices is primarily attributed to a simultaneous drop in the cost of essential feedstock, Calcium Carbonate. The lower feedstock prices have led to decreased production rates, thereby exerting additional downward pressure on Quicklime prices. Moreover, the current price dip can be largely linked to an oversupply of Quicklime in the market. The persistent trade uncertainties in the Red Sea have resulted in extended delivery times for exports, contributing to stockpiled inventories within the country. As inventory levels rise, the imbalance between supply and demand has prompted manufacturers to lower prices in an effort to stimulate sales and manage excess stock. This combination of factors illustrates the challenges facing the Quicklime market in the UAE. The price decrease of 5% from the previous quarter of Q3 highlighted the ongoing downward trajectory. The quarter-ending price of USD 121/MT of Quicklime FOB Jebel Ali in the UAE underscored the prevailing negative pricing environment.
South America
The third quarter of 2024 has witnessed a significant uptrend in quicklime pricing across South America, with the USA experiencing the most notable price changes compared to the previous quarter. This increase can be attributed to several key factors. The current demand of quicklime in the downstream industries is low driven by fluctuations in the decline in construction industry. However, recent hurricanes have resulted in significant supply chain disruption, leading to tighter supply conditions, further driving up prices.
In the USA specifically, the correlation between price changes and seasonality has been evident, with prices showing an approximately 4% increase from the previous quarter. Despite the increase in price, Industries faced challenges from hurricanes, which disrupted the supply chain, while weak orders from the overseas market also contributed to price volatility. Furthermore, capacity on shipping routes from the Far East to US remains constrained due to ongoing disruptions in the Red Sea.
As of the end of the quarter, quicklime prices reached USD 156/MT, CFR Santos. This figure highlights the ongoing impact of both localized disruptions and broader market dynamics on pricing trends in the quicklime sector.
For the Quarter Ending June 2024
North America
In Q2 2024, the Quicklime market in North America exhibited a stable pricing context. Throughout this quarter, several critical factors influenced market prices, contributing to a steady environment. A significant reason for this stability was the consistent supply from major exporters, ensuring no significant disruptions in the market. The construction sector's moderate performance, coupled with a strategic approach to inventory management, further reinforced market stability. Suppliers maintained a balance between supply and demand, avoiding overstocking and understocking scenarios.
Focusing on the USA, the country saw the most notable price changes within this quarter. The overall trend reflected a stable sentiment, as prices remained largely unchanged between the first and second halves of the quarter. Seasonality appeared to have a negligible impact on Quicklime prices, given the consistent activity within the construction sector. The correlation between demand and pricing showed that despite a robust downstream construction sector, prices maintained their steadiness due to sufficient supply and efficient supply chain operations. The percentage change from the previous quarter in 2024 was recorded at 2%, indicating minor fluctuations reflective of a stable market environment.
The quarter concluded with the price of Quicklime (CaO) CFR Texas in the USA standing at USD 221/MT. This consistency underscores a stable pricing environment, reflecting neither a decidedly positive nor a negative trend but rather a balanced market outlook without any notable disruption or plant shutdowns during the quarter.
APAC
In Q2 2024, the Quicklime market across the APAC region experienced a consistent downward trend in pricing, influenced by several critical factors. The market faced weak new orders primarily due to subdued construction activities, compounded by higher input costs and increased freight rates in overseas markets. A significant oversupply of Quicklime exacerbated the price decline, as manufacturers and merchants had to deal with an excess inventory amidst low demand. The overall market sentiment remained negative, influenced by economic uncertainties and reduced investment in the construction sector.
Focusing on China, which saw the most substantial price changes, the Quicklime market was remarkably unstable. Despite the moderate improvement in the construction sector following the Spring Festival, the market faced sluggish demand due to the bearish property market and delayed developer funding. The increased availability of Quicklime, coupled with weak downstream construction activities, put significant downward pressure on prices. Seasonality played a role in the trends observed, with the impact of continuous rainfall in East China contributing to reduced demand. The correlation between the NBS Non-Manufacturing PMI's decline and slipping Quicklime prices underscored the adverse impact on market sentiment.
Notably, there were no recorded plant shutdowns or significant disruptions in the supply chain during this quarter. The price decreased by 16% compared to the previous quarter and by 19% between the first and second halves of Q2 2024, highlighting the persistent downward momentum. The quarter-ending price for Quicklime FOB Qingdao was USD 145/MT, reflecting a firmly negative pricing environment throughout the period.
Europe
The second quarter of 2024 saw a notable increase in Quicklime prices across Europe, driven by several influential factors. Despite the persistent underperformance of the downstream construction industry, Quicklime prices escalated due to heightened market competition and a concerted effort by suppliers to stabilize prices after prolonged declines that pressured profitability margins. The global market's high freight charges also contributed significantly to this price adjustment, as European producers factored in these external costs. Additionally, while European construction demand remained tepid, improved supplier performance and reduced delivery times, particularly in Germany, helped curb inflationary pressures and support this price elevation.
Focusing on Germany, where price changes were most pronounced, the Quicklime market experienced a significant uptick. This was driven by better supply chain efficiencies, increased performance in the manufacturing sector, and a sharp rise in supplier performance. Despite subdued housing and commercial activities, the slight improvement compared to April and the high inflation rates led suppliers to revise prices upwards. The overall trend indicated a moderate but consistent increasing sentiment, with a mid-quarter price comparison showing a 5% rise from the first half, reflecting the sustained positive pricing environment.
Conclusively, Germany's quarter-ending Quicklime price stood at USD 160/MT FD Hamburg, highlighting a predominantly positive pricing environment in Q2 2024. The 1% increase from the previous quarter underscores the market's gradual but steady recovery trajectory.
MEA
During Q2 2024, the Quicklime market in the MEA region encountered a uniformly declining pricing trend, driven by several critical factors. Weak demand across multiple sectors, including construction and manufacturing, played a pivotal role in this downturn. Despite stable supply chains and consistent production levels, the market faced an oversupply situation, exacerbating the downward pressure on prices. Additionally, economic uncertainties and a cautious approach from buyers further suppressed fresh orders, contributing to the bearish market outlook.
Focusing on the United Arab Emirates, the country exhibited the most significant price fluctuations within the region. The decreasing pricing environment was primarily influenced by subdued demand in the downstream construction sector, despite its otherwise strong performance. Market dynamics such as the preference for utilizing existing inventory over new purchases and the moderate supply levels accentuated the declining trend. Moreover, higher inventories and weak market demand were compounded by infrastructure challenges, further stagnating the market.
Seasonal factors also contributed to the price reduction, with the second half of the quarter showing a more pronounced decline compared to the first half. This trend underscores a consistent bearish sentiment throughout Q2 2024. The market saw a -4% change from the previous quarter, reflecting an ongoing negative pricing environment. The quarter-ending price for Quicklime (CaO) FOB Jebel Ali in the UAE stood at USD 125/MT, marking a clear decline and suggesting that the pricing environment has been predominantly negative.
For the Quarter Ending March 2024
North America
Throughout the first quarter of 2024, the Quicklime market turned bullish as the downstream construction sector rebounded, leading to an increase in demand for construction materials. This, along with supply disruptions caused by extreme weather conditions and disruptions in shipping routes like the Panama Canal and the Red Sea, resulted in higher freight costs and pushed prices higher.
The market remained bullish in February 2024, driven by firm orders from the downstream steel sector and increased production costs. The global steel industry experienced an increase in new orders, particularly in Asia, leading to a surge in exports, employment, and purchasing activity. The overall trend in the Quicklime market during this quarter suggests a correlation with the construction and steel industries, with increased demand leading to higher prices.
Comparing the year-over-year price change from the same quarter last year and the change from the last quarter of 2023, the market experienced a significant increase in prices in Q1 2024. Conclusively, the final price for Quicklime (CaO) CFR Texas in the USA in Q1 2024 was USD 218/MT.
APAC
In Q1 2024, the Quicklime market in the APAC region witnessed mixed pricing dynamics. While the market situation remained stable overall, China experienced pronounced price fluctuations. The pricing trend in China was primarily driven by firm orders from the downstream steel sector and increased production costs. However, the market sentiment was cautious due to sluggish transactions and the impact of rainy and snowy weather on downstream construction activities. In terms of supply, the Quicklime market had moderate availability, with most mainstream factories raising their prices or reducing discount rates due to increased raw material costs. On the demand side, the market experienced low activity, with transactions being sluggish and inventory levels reflecting increased inventory maintenance. The market sentiment was cautious, with limited new orders from merchants and a decline in construction activity. Looking at the overall quarter, the Quicklime market in APAC saw a bullish trend, with the price of Quicklime increasing by 5.4% compared to the previous quarter. This increase was primarily driven by firm orders from the downstream steel sector and increased production costs. In conclusion, the final price for Quicklime (CaO) FOB Qingdao in China for Q1 2024 was USD 195/MT.
Europe
The pricing dynamics of Quicklime in the European region during Q1 2024 were influenced by various factors beyond the conventional top influences. The overall trend in the market was bearish, with prices experiencing a decline throughout the quarter. The market situation in the Netherlands, where price fluctuations were most pronounced, played a significant role in shaping the pricing dynamics. The construction sector in the Netherlands faced challenges, with a lack of new projects and a decline in demand for building materials. This led to a decrease in purchasing activity and job losses in the sector. Additionally, disruptions in the ocean routes and delays in raw material deliveries affected the supply of Quicklime in the European market. These factors contributed to a moderate supply of Quicklime but also led to increased costs for manufacturers. In terms of seasonality, the first quarter of the year typically sees a slowdown in construction activity, which further impacts the pricing dynamics. The correlation between pricing and market conditions remained evident, with a bearish market leading to lower prices. Comparing the pricing dynamics to the same quarter last year, there was a decline in prices, reflecting the challenging market conditions. Similarly, compared to the last quarter of 2023, prices decreased, highlighting the continued downward trend. In conclusion, the final price for Quicklime FD Rotterdam in the Netherlands for the quarter was USD 160/MT.
MEA
In the first quarter of 2024, the Quicklime market in the MEA region witnessed dynamic pricing trends, with a focus on the United Arab Emirates (UAE). The market situation in the UAE was characterized by fluctuations in prices, driven by a combination of factors beyond the conventional top influences. While the top influences included firm orders from the downstream steel sector and increased production costs in the UAE market, other factors contributed to the nuanced pricing dynamics. The UAE non-oil private sector economy showed signs of improvement, with an upturn in overall operating conditions, particularly in the petrochemical sectors. This positive growth in the construction sector is expected to boost demand for Quicklime. However, the market also faced challenges, such as limited supply due to supply disruptions on the ocean route and tensions in the Red Sea. These disruptions led to increased freight rates and impacted imported Quicklime prices. Comparing the prices to the same quarter last year and the last quarter of 2023, specific percentage changes were not mentioned in the provided text. In conclusion, the final quarter's price for Quicklime (CaO) FOB Jebel Ali in the UAE was mentioned as USD 137/MT, reflecting the overall upward pricing trend in Q1 2024.
For the Quarter Ending December 2023
North America
In the fourth quarter of 2023, the Quicklime market in North America experienced a slight increased trend compared to previous quarter. Several factors influenced the market and prices during this period. Firstly, there was a shortage of imports, leading to limited supplies and challenges in fulfilling current orders. This shortage was exacerbated by logistical challenges in the global container trade, including droughts affecting rivers and congestion at ports.
Secondly, the downstream demand from the steel production industry remained moderate, contributing to the stability of prices. However, the overall demand in the construction industry was low due to high mortgage rates and rising interest rates. Lastly, the volatility in freight charges resulted in an increase in the cost of importing cargo to the USA, further impacting the pricing dynamics of Quicklime.
In the USA, the Quicklime prices saw a marginal surge in November 2023 due to the shortage of imports and modest downstream demand from the steel production industry. The volatility in freight charges elevated the cost of importing cargo, leading to constrained supplies. Market players chose to sustain margins by gradually increasing prices. In December, the cost of the product decreased, attributed to the year-end dynamics and the destocking of materials at affordable prices from the overseas market. The latest price of Quicklime (CaO) CFR Texas in the USA for the current quarter is USD 200/MT.
APAC
The APAC region experienced improved market conditions for Quicklime in the fourth quarter of 2023 compared to previous quarter. The market was influenced by several factors, including limited supply, moderate to high demand, and rising input costs. Destocking activities and reduced production rates resulted in limited supplies, leading to an increase in prices. The demand for Quicklime showed resilience, particularly in the downstream steel manufacturing segment, contributing to the price increase. In China, which saw the most significant changes in prices, the market experienced a surge in demand, both domestically and internationally, as the country's infrastructure and manufacturing sectors rebounded. This increased demand, coupled with low stock availability, drove prices higher in the Chinese market. No plant shutdowns were reported for Quicklime in any country during this period. The quarter ending price for Quicklime (CaO) FOB Qingdao in China was USD 151/MT.
Europe
The Quicklime market in Europe faced declining pattern in the fourth quarter of 2023, with prices experiencing fluctuations due to various factors. Firstly, the market witnessed a decline in demand from the downstream steel industry, leading to sluggish sales volumes and inventory build-up. Additionally, high input costs, including electricity prices, put pressure on producers' margins, forcing them to adopt a cautious approach and limit production. Another factor impacting the market was the overall economic slowdown, with weak business confidence and a decrease in new orders. In the Netherlands, specifically, Quicklime prices saw a decline of 3% compared to the previous quarter, with the market facing low demand and limited supplies. Despite efforts to reduce operating rates and minimize inventories, suppliers struggled to maintain profit margins amid competition from the import market. In terms of plant shutdowns, no incidents were recorded in the Netherlands during this quarter. The latest price for Quicklime FD Rotterdam in the Netherlands at the end of the fourth quarter was USD 164/MT.
MEA
The Quicklime market in the UAE region experienced a declining pattern during the fourth quarter of 2023. Several factors influenced the market and prices during this period. Firstly, the oversupply of Quicklime in the regional market led to subdued demand and reduced export inquiries, particularly in the downstream steel industry. This resulted in a decline in prices, as market participants sold material below producer price levels to stimulate purchasing. Additionally, low international offtakes and weak demand in the domestic market further contributed to the price fall. The market in the UAE was characterized by high supply levels and moderate demand, resulting in limited offtakes and lowered purchasing sentiments. Despite the challenging market conditions, the UAE economy showed signs of strength, driven by private sector consumption and fixed investment. Looking ahead, it is anticipated that the Quicklime prices in the UAE will fluctuate, with factors such as input costs, domestic and regional demand, and inventory levels influencing the market dynamics. The latest price of Quicklime (CaO) FOB Jebel Ali in the UAE for the current quarter is USD 135/MT.
For the Quarter Ending September 2023
North America
The Quicklime prices during Q3 resulted from mixed market sentiments in the North American region. In the H1 of the Quarter, the dropped production run rates along with supply disruptions caused by Hurricane Idalia, and as a ripple effect, limited the availability of stocks in the middle of the Quarter. Moreover, the Qucklime pricing dynamics in the North American region were impacted by the rise in output costs amidst high energy prices. Likewise, an improvement in international and domestic offers prompted the Quicklime market bullishness in the US market for the time being. However, in the second half of the Quarter, the Quicklime prices exhibited a downward trend amidst low demand and sufficient inventories. In addition, on the steel demand side, the US steel producers opted to slow down the production run rates amidst the automakers' union strike in the USA during September 2023. Therefore, the market participants' outlook for Quicklime prices is based on concerns about the weakening downstream demand and fear of recession in the country towards the end of the Quarter. Thus, the price of Quicklime was assessed at USD 195/MT, CFR Texas (USA) in September 2023.
Asia
In the Quarter ending September 2023, the prices of Qucklime in Asia experienced a continued surge due to the increase in international offers and robust demand in the steel production industry. The upward trend in regional demand is expected to continue pushing export prices of Quicklime higher in October as well. Alongside the export prices, domestic production in the downstream steel manufacturing sector also saw an increase, driven by the rising consumption of Chinese steel in the construction and automotive industries. Therefore, the heightened price trajectory of Quicklime in the regional market is a direct result of these factors. Furthermore, merchants across the country reduced their production rates in the first half of September 2023 in anticipation of the Golden Week Holiday in China. Consequently, the price increase observed in September 2023 was primarily due to limited supply, which was in line with the improving downstream demand fundamentals. Additionally, the overall upward trajectory of Quicklime prices was prompted by the supply constraints since August 2023, exacerbated by typhoons in the region and the holiday season in China during the third Quarter.
Europe
The Quicklime prices in the European market were low in the Quarter ending September 2023, backed by the increasing uncertainty in the market related to the new orders in the downstream steel demand, and market players seem cautious about the market situation amidst piled-up inventories. Weak macroeconomic dynamics have dragged prices down since early Q3, followed by September's sluggish downstream consumption. The demand conditions remained weak, with new business declining at the quickest pace, leading to a further marked decline in procurement activity in the Quicklime industry and input buying enthusiasm. The European Quicklime market in September was also affected by the contraction in exports and deterioration in manufacturing activities amidst a cautious approach towards a spike in crude oil values by the downstream buyers. Additionally, the industrial producer price was up in August 2023 by 0.6% and remained resilient in September 2023 with stability in the inflationary pressures in the regional market as per the data released by the Eurostat Commission during this Quarter.
Middle East Asia
The fluctuating Quicklime prices in the Quarter ending September 2023 resulted from mixed market sentiments in the MEA region. The dropped production run rates along with supply disruptions, caused Quicklime prices to rise in the H1 of the Quarter. Moreover, the Qucklime pricing dynamics in the region were impacted by the rise in output costs amidst high energy prices in the Middle East region. Moreover, a revival in the international and domestic offers prompted the Quicklime market bullishness in the US market for the time being. Contradictory, the second half of the Quarter saw the Quicklime prices exhibiting a downward trend amidst low demand and sufficient inventories. In addition, on the steel demand side, the downstream steel producers in the regional market opted to slow down the operational rates amidst slow consumption in the automotive and building sectors during September 2023. Therefore, the market participants' outlook for Quicklime prices was based on concerns about the weakening downstream demand towards the end of the Quarter.
South America
The Quicklime prices in the South American region during the Quarter ending September 2023 were influenced by a combination of commodity pricing factors. In the first half of the Quarter, a decrease in the supply inflow rate, coupled with supply disruptions caused by expensive imports, led to limited stock availability in the regional market. Additionally, the pricing dynamics for Quicklime in South America were affected by increased production costs due to high energy prices in the exporting nations. Conclusively, the market saw a temporary boost in the United States due to improved international and domestic offers. However, in the latter half of the Quarter, Quicklime prices started to decline due to reduced demand and ample inventories. On the steel demand front, steel producers slowed down production rates in Latin America amidst the economic slowdown during September 2023. As a result, market participants are now concerned about weakening downstream demand and the possibility of a recession towards the end of the Quarter.
For the Quarter Ending June 2023
North America
During the second quarter of 2023, Quicklime prices reached an all-time low due to various factors affecting the market. The key reasons included reduced demand from the downstream steel industry, alongside a decline in export demand caused by higher interest rates and increasing inflation. This situation compelled manufacturers to cut production costs and suppliers to reduce their material stocks in response to an oversupplied market. Despite electricity costs being subsidized, which helped maintain moderate production levels, the overall market sentiment remained bearish. The resumption of operations on the West Coast towards the end of May also had some impact on the market dynamics. The primary factors contributing to the plunge in prices were weak demand from the domestic as well as from the regional market amidst slow economic growth in the US. These factors played a significant role in driving down Quicklime prices. The price depreciation is projected to pause in June, as the Federal Reserve's decision to put an ease on interest rate hikes at the end of June 2023.
Asia
During the second month of the 2nd Quarter, Quicklime prices exhibited mixed market sentiments, driven by supply disruptions and stagnant demand from the downstream steel industry in the mid of the quarter. However, in the H1 of Q2, there was a decline in Quicklime prices, mainly due to low demand fundamentals and an oversupplied market experienced by traders. This was a result of low demand from the downstream steel industry, which coincided with China's Labour Day Holidays and reduced buying sentiments in both domestic and offshore markets. Toward the end of the 2nd quarter, the Quicklime industry experienced a balanced market. This was primarily attributed to the depreciation in natural gas prices, an increase in inventory levels of the product in the Chinese market, consistent domestic supplies, and stability in downstream demand. The price fluctuations of Quicklime were as follows: a 10.3% depreciation in April, followed by a 4.3% appreciation in May, and another 2.7% decline in June. By the end of the 2nd quarter in 2023, the assessed price of Quicklime was USD 142/MT FOB Qingdao (China) in June 2023.
Europe
After experiencing a significant drop in March 2023, the prices of Quicklime in Europe remained unchanged, mainly due to a lack of demand from the steel sector. Throughout the 2nd Quarter of 2023, the market situation continued to be down due to an abundant supply of stocked material and lowered demand across the region. Logistic strikes and worker operations being halted resulted in cargo movement restrictions, alongside rising inflation and reduced export orders from overseas. As the 2nd Quarter progressed, prices of Quicklime further decreased because the downstream demand persistently slowed down and led to an oversupplied market while production levels remained steady. Additionally, the slow revival of the European economy contributed to a decline in domestic orders in the downstream market for Quicklime. Consequently, the prices of Quicklime saw a continuous decline, dropping by 1.9% in May and 12.6% in June. By the end of June 2023, the price was recorded at USD 180/MT FD Hamburg (Germany).
For the Quarter Ending March 2023
North America
When compared with the previous quarter, the Quicklime market projected a downward price correction in the wake of feeble trading fundamentals. An abundant supply of product feedstock and low production costs among the local producers reduced Quicklime prices in the domestic market. In the USA, the prices of Melamine also slipped due to the high operating rates of the manufacturing units and slow demand in the market. Due to this, the revision in the price trend was observed with a reduced-price trend for overseas suppliers. However, downstream iron and steel industries operated stably with cautiously operating ventures. With surplus product availability and lower demand for new stock, producers feel pressured to clear their stock.
Asia Pacific
In Q1 2023, the regional Quicklime saw a decline in trading activities due to adequate existing stocks and feeble spot purchasing activities. Producers' efforts to preserve their margins failed to support stability in the cost trend. Supporting the bearishness in the Petroleum coke market, Quicklime production cost also tumbled, resulting in a weak price trend. Quicklime inventories in the domestic ports remain high with the feeble purchasing downstream procurements. Feeble demand from the downstream iron and steel industries has led to a decline in Quicklime. There are weak purchasing dynamics from the consumer's side as the suppliers purchase Quicklime on a need-to basis.
Europe
This quarter, the market trading activities failed to showcase bullish price trends due to limited demand and high product inventories. Trade discussions in the European Quicklime market slumped, with some participants offering negotiated levels on their contracted supply. Adequate supply continued to affect the market, declining the selling sentiment. The demand for Quicklime from the downstream iron and steel industries slumped with deterred purchasing from the end user. In the value term, trading also declined this quarter due to lower demand from the overseas market. The curbs of the supply chain and further weak cost support resulted in a Southward trajectory of the Quicklime in Germany.
For the Quarter Ending December 2022
North America
The Quicklime prices were low in the fourth quarter of 2022 in North America. The muted downstream steel demand due to the bearish market sentiments and domestic steel mill continued outages and limited industrial output in the quarter ending December 2022 impacted the commodity price trend in the US market. The rising COVID lockdown uncertainties in the market also led to the plunging price trajectory for the product this quarter. Conclusively, the increasing inflation decelerated economic activities and deteriorated buying sentiments in the downstream sectors for Quicklime. Meanwhile, the inventories remained steady in this quarter for the commodity.
APAC
The Quicklime market showed mixed sentiments in the quarter ending December 2022 in the APAC region. The Quicklime prices were impacted by the uncertain downstream steel demand in the Chinese market and the weakening economic growth of the country. The ease in the COVID-19 curbs in late November 2022 has led to stability in the downstream demand, and Quicklime prices dropped in the Chinese market. Meanwhile, the Quicklime prices turned downside in December 2022 in India, owing to the stagnancy in the downstream Steel industry offers and low feedstock limestone costs. Indian steel industries faced inadequate buying sentiments due to prolonged elevated inflation. The price of Quicklime was assessed at USD 156/MT FOB Qingdao (China) in December 2022.
Europe
The prices of Quicklime showcased mixed market sentiments in the quarter ending December 2022 due to the supply disruptions and weak price support from the downstream Steel industry. The restricted Russian oil and gas supplies accelerated the input cost pressure on the Quicklime market in Europe. The weak demand fundamentals and high energy prices limited the production of the product in the region, affecting the Quicklime price trajectory. The dwindling downstream steel offers remained the primary factor of the lower Quicklime prices this quarter. The price of Quicklime hovered around USD 212/ton FD Hamburg (Germany) in December 2022.
For the Quarter Ending September 2022
North America
Quicklime costs showcased an upward trajectory throughout the 3rd Quarter of 2022. High energy prices and an excessive inflation rate strained the Quicklime market in the USA. Meanwhile, the elevation in the input costs pressure due to the hampered production activities globally impacted the margins of the enterprises. Downstream offers from the industries such as the paper, pulp, and metal segments remained silent in this Quarter. In addition, the labor strike at the west coast port led to supply disturbances in the country at the termination of September 2022. Thus, the prices of Quicklime recorded a surge of 2% in the USA market towards the end of September 2022.
Asia
The price trend of Quicklime has showcased mixed sentiments in the APAC region during the Quarter ending September 2022. Lower raw material limestone costs in the regional market led to an ease in the values of the product in the region in July. Besides, a surge in product orders from the downstream steel segment and limited availability of inventories affected the price quotations during the mid-O3. The COVID-19 lockdown disturbances and cargo momentum delay amidst the global recession also squeezed the market participation of the product in the region. It increased the inflationary input costs pressure during the third Quarter of 2022. Therefore, the price of Quicklime was assessed at USD 148/ton FOB Qingdao (China) in September 2022.
Europe
Quicklime prices showcased mixed sentiments in the European Region during this Quarter. The feedstock Limestone prices and high inflation pressure rose sharply due to volatility in the crude oil prices amidst crippled supplies of upstream Crude oil in Europe by Russia. Volatile economic conditions led to buoyancy in the raw material values, impacting commodity pricing dynamics in the region. On the demand side, the domestic offers for Quicklime witnessed consistency in the metal segment in the mid-Q3. In addition, supplies were affected by the congestion at the container terminals amidst labor strikes in the UK and Germany. The price of Quicklime was assessed at USD 169/ton FD (Germany) in September 2022.
