Quicklime Price Trend Q1 2024
Asia
Quicklime or calcium oxide showcased varying price trends during the first quarter of the year 2024. With the markets witnessing both upward and downward forces, the price trend was more or less confined as the prices fluctuated within narrow boundaries. The downstream steel industry was giving a positive response as the orders were firm. However, the subdued demands from the construction sector were exerting negative pressure on the prices.
Regionally, the inventories were sufficiently supplied in major key markets, particularly India and China. Manufacturers did incline the prices after witnessing a surge in production costs. The rise in raw material rates and energy costs forced suppliers to uplift the prices to sustain the profit margins. Stable demands helped support the market dynamics. Overall, a largely stable and range-bound price trend was witnessed for quicklime in the Asian markets during the said period.
Europe
In contrast with the stability in the Asian quicklime market, the price trend in the European markets was rather tepid. The construction sector in Europe was challenged amidst the ongoing difficult trading situations. The procurement, especially international procurement of raw materials, was difficult because of the supply chain curtailments. The Russia and Ukraine war heated up even more as it entered its third year. Along with that, the Israel and Hamas conflict further affected the market dynamics.
On the other hand, the pirates started attacking shipments in the Red Sea. These rising Houthi pirate attacks led to an approximate 50% decline in the vessels passing through the Suez Canal. The canal represents the major maritime gateway between Asia and Europe. This reflected the degradation in trade sentiments over the said period. Therefore, a bearish price trend was observed for quicklime in the European markets during Q1’24.
North America
In the American region, the quicklime market was relatively more optimistic compared to the other global markets. The supply and demand outlooks were able to sustain their parity during the said period. Upstream costs increased as the freight charges rose, and the increased demands from the downstream steel and construction sectors also provided a positive push. Despite some occasional dips, the CaO price trajectory mostly remained inclined in America during the concerned span.
Analyst Insight
According to Procurement Resource, Quicklime prices are likely to remain turbulent in the coming months. Demand projections are positive; however, the upstream dynamics will also play a part in driving these prices.
Procurement Resource provides latest prices of Quicklime. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.
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