During Q1 2023, the US market experienced a decline in the Calcium Chloride Prices, which was attributed to weakened demand from downstream industries, such as the construction industry. The shortage of labor in the USA played a significant role in this price decline, as it had a direct impact on the construction sector, leading to a reduction in demand for construction products. In January, February, and March, the value of Calcium Chloride decreased by around 7%, 5%, and 3%, respectively. The decline in prices during the first two months of the quarter was primarily due to a decrease in feedstock Ammonia prices, which fell by 7% and 4% across the USA, further influencing price trends. Ultimately, the price of Calcium Chloride in the US market at the end of the quarter hovered around USD 320/MT.
In the first quarter of 2023, the Asian market saw a surge in the price of Calcium Chloride owing to the increased demand for the product in the region, despite a steady supply. In India, the product's price rose by approximately 16%, 14%, and 7.5%, respectively, over three months because of the continuously rising price of the feedstock Ammonia in the market. The value of Ammonia in the Indian market increased by around 35%, 17%, and 22%. Furthermore, the increased buying interest for the product in the global market impacted pricing dynamics during the quarter. Likewise, in other Asian countries like China, the price of Calcium Chloride also saw an increase of around 3% and 5% in February and March, respectively, due to a surge in demand from the construction sector. With the lifting of Covid restrictions and the Chinese New Year uncertainty in the country, the Chinese economy improved, and the construction sector also observed positive growth, further supporting the price trend for the product. However, in January, the price of the product in China declined by 3% due to the Chinese Lunar New Year uncertainty, with the market being closed for almost a week before and after the festival.
In Q1 of 2023, the European market experienced a drop in the demand for Calcium Chloride from the construction sector, despite the high supply in the region. This scenario led to an increase in the price of Calcium Chloride in the European market during Q1 of 2023. In the Netherlands, the price of Calcium Chloride (74-77% Tech Grade) FD Rotterdam declined by approximately 4%, 3.6%, and 3.7% in the first quarter of 2023, respectively, due to the decreased price of feedstock Calcium Carbonate. The Calcium Carbonate Prices declined by approximately 8% and 7% in February and March. Moreover, high living costs and an increased inflation rate across Europe served as a secondary reasons for this downfall. The high inflation rate and cost of living resulted in reduced demand for the product, as businesses were compelled to increase their prices in response to the high cost of production. This, in turn, further diminished demand for the product.
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