Calcium Propionate Price Trend and Forecast

Calcium Propionate Regional Price Overview

Get the latest insights on price movement and trend analysis of Calcium Propionate in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Calcium Propionate Price Trend for the Q3 of 2024

Asia

In Asia, the calcium propionate market was notably impacted by disruptions in the supply chain of propionic acid, the primary raw material for its production. Key manufacturing hubs in the region faced operational challenges due to recent environmental regulations aimed at reducing industrial emissions. These regulations forced manufacturers to invest heavily in upgrading their production facilities to meet stricter standards.
 

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The costs of these upgrades were ultimately passed down the supply chain, contributing to upward pressure on calcium propionate prices. Additionally, energy costs in the region escalated during the quarter, further straining production capacities. Geopolitical tensions in parts of Asia led to trade restrictions, causing delays in the movement of materials and creating uncertainty for manufacturers and buyers alike. As some countries explored the possibility of expanding domestic production to reduce reliance on imports, these efforts were still in their early stages, and the region remained heavily reliant on international supply routes. The combination of these factors resulted in a challenging market for calcium propionate, with prices reflecting the broader volatility of the propionic acid supply chain.

Europe

In Europe, the calcium propionate market faced significant challenges driven by new environmental regulations and trade disruptions. Stricter policies aimed at reducing industrial emissions across key production regions necessitated major facility upgrades for manufacturers, increasing production costs. European manufacturers also dealt with rising energy prices, which further compounded production difficulties.

The construction of new environmental compliance mechanisms in factories took time and resources, with the financial burden being passed along to buyers of calcium propionate. The influx of lower-cost materials from other regions helped mitigate some supply concerns but did not prevent the overall upward pressure on prices. The demand for calcium propionate from the food sector, especially bakeries and processed food manufacturers, remained relatively steady, but the higher production costs strained margins for many businesses. The pharmaceutical industry also felt the effects, with drug manufacturers exploring ways to manage rising costs without compromising profitability.

North America

In North America, the market for calcium propionate mirrored the challenges seen in other regions, though with some distinct regional dynamics. The North American market was particularly sensitive to disruptions in international trade routes, as geopolitical tensions led to restrictions on the movement of key raw materials, including propionic acid. These disruptions forced manufacturers to rely more heavily on domestic production, which, while beneficial for local supply chains, introduced new challenges in terms of capacity limitations and rising energy costs.

Similar to Europe, manufacturers in North America faced significant costs related to facility upgrades to meet stricter environmental standards. The food industry, particularly bakery and processed food manufacturers, struggled to absorb the higher costs associated with calcium propionate production, with smaller businesses being most vulnerable. The pharmaceutical industry, which also relies on calcium propionate for certain medications, saw a similar trend, with larger companies having more flexibility to manage cost increases, while smaller producers faced potential profitability challenges.

Analyst Insight

According to Procurement Resource, the price trend of Calcium Propionate is expected to turn slightly northwards with adequate support from the downstream as well as feedstock industries.
 

Calcium Propionate Price Trend for the Q2 of 2024

Asia

The calcium propionate market in China experienced significant price fluctuations driven by a combination of supply chain disruptions, geopolitical tensions, and increased demand across various sectors. The logistical challenges raised by the geopolitical tensions, especially between Israel and Iran, disrupted global trade routes and increased shipping costs globally. Additionally, the surge in propionic acid prices, a key raw material for calcium propionate, was influenced by a shortage of feedstock and rising production demands.

Additionally, the summer season escalated the need for food preservatives, while rising demand from the personal care and pharmaceutical industries further strained supply. The labor shortages following the Labor Day holiday had an additional negative impact on the domestic production levels. These factors, combined with the collapse of the Francis Scott Key Bridge in Baltimore, which has disrupted international trade routes and increased logistical costs, are contributing to the upward price trend of Calcium Propionate in China.

Europe

The European nation opted for a cautious movement in the second quarter of 2024 as the manufacturers of calcium propionate were skeptical of the economic recovery of the region even after the reduction of the European Central Bank’s interest rates. However, the downstream demand, particularly from the food and beverages sector, showed significant improvement and supported the uptrend in the market momentum throughout the quarter. As compared to the last quarter, the cost support from the feedstock commodities declined a little but had a limited impact on the prices of calcium propionate. Overall, the market trend was upheld by strong demand but restricted by the weak outlook of other primary factors of the market.

North America

The North American calcium propionate market followed the global patterns as its prices of the commodity oscillated in the second quarter. The primary driver of these fluctuations was the trading challenges due to rising geopolitical issues and the escalating cost of transport.

Similar to the European countries, the procurement rates of the commodity were positive throughout the quarter in the domestic market. However, the reduction of overseas profit margins depreciated the confidence of investors and consumers, resulting in the bleak sentiments of the calcium propionate market. These factors, combined with the collapse of a bridge in Baltimore, further disrupted international trade routes and increased lead times, contributing to the upward price trend of calcium propionate in the US as compared to the last quarter.

Analyst Insight

According to Procurement Resource, the price of Calcium Propionate is expected to be positively influenced by the rising procurement rates of the downstream industries and escalating geopolitical tensions disrupting the global trading sector and constricting the supply chains.
 

Calcium Propionate Price Trend for the Q1 of 2024

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Asia

In Asian countries, the calcium propionate sector witnessed significant price incline during the first quarter of 2024. China, renowned as a major producer and exporter of calcium propionate, experienced a notable and steady rise in prices throughout the quarter. This increase was fueled by various factors unique to the Chinese market. After the conclusion of the Lunar New Year and Spring Festival holidays, there was a surge in bulk orders and purchases domestically and internationally.

As production facilities resumed full operations post-maintenance, market confidence strengthened, further propelling the price hike of calcium propionate. Additionally, dwindling calcium propionate inventories in China intensified the disruption of the supply-demand equilibrium. The depreciation of the Chinese yuan against the USD also contributed to driving up costs, alongside post-holiday demand resurgence and increased consumer confidence.

Europe

In the European market, calcium propionate prices surged due to bulk orders for inventory replenishment and insufficient supplier inventories, leading to demand surpassing supply. Compounding this situation are disruptions in shipping routes around the Red Sea and Gulf of Aden.

There were several instances when vessels were diverted south around the Cape of Good Hope for safety reasons, resulting in freight charges increasing approximately threefold. These additional costs contributed to the overall escalation of calcium propionate prices in Europe. Amid the rising cost of imports, the feedstock chemicals also showcased remarkable appreciation in their market momentum and pricing patterns, supporting the uptrend in the price trend of calcium propionate.

North America

In North America, the first quarter of 2024 witnessed a significant rise in calcium propionate prices, attributed to multiple factors. The first factor impacting the price trend of calcium propionate was the improvement in the region's economic indicators. However, disruptions in shipping routes, particularly due to attacks in the Red Sea region, significantly impacted the trading sentiments.

These disruptions led to increased shipping costs and delays, affecting the supply chain and resulting in higher freight charges for the US. Moreover, the uptick in prices of the raw material propionic acid in the US further elevated production costs, maintaining strong market sentiment and supporting the upward trajectory of calcium propionate prices in the region.

Analyst Insight

According to Procurement Resource, the price trend of Calcium Propionate is estimated to further grow in the northward direction as the fast pace depletion of inventories and rerouting of traditional trade routes will favor an uptrend in the prices of calcium propionate.
 

Calcium Propionate Price Trend for the October - December of 2023

Asia

In the fourth quarter of 2023, a gradual decline in the price of calcium propionate was noted, especially in the Indian market. The main causes for this decline in the price of calcium propionate were the sharp drop in raw material costs and the poor performance of the industrial sector.

The product had only a modest demand from the customers, but the destocking activities of the traders based on the materials oversupply cast doubt on the rate of increase in calcium propionate pricing.

Europe

The European countries did not experience as sharp a reduction in calcium propionate prices as the Asian region did. The pricing trajectory was still not totally in the green, though. In this region, the trend was negatively affected by the lackluster end-user industry momentum and exceeding pressure from rising inventories, interest rates, and inflation hindered the calcium propionate pricing developments throughout the fourth quarter.

North America

Due to weak trade activity and a significant drop in export rates, the calcium propionate prices teetered towards the lower end in the initial part of the fourth quarter. Additionally, the calcium propionate market's performance in the fourth quarter of 2023 was negatively impacted by reduced production costs brought on by the decline in the price of natural gas and crude oil. However, a modest upward shift in price patterns was observed during the last period, which may be related to the return of customer confidence in this industry.

Analyst Insight

According to Procurement Resource, the price trend of Calcium Propionate are estimated to experience some challenging months ahead as the downstream demand and excessive rise in inventories pose a problem for the traders.
 

Calcium Propionate Price Trend for the July - September of 2023

Asia

Calcium Propionate continued its very disappointing run in the Asian market in the third quarter of the year 2023 as well. The bearish demands from the downstream pharma and agricultural sectors kept the downward bent in the calcium propionate price graph consistent.

Feeble cost support from feedstock materials propionic acid and calcium hydroxide was also one of the reasons the calcium propionate price index remained low laying.

Unseasonal weather changes during the given time with uneven and disrupted rain cycles impacted the agriculture sector very badly. Many farmers were compelled even to give up sowing crops; this gave the biggest pushback to calcium propionate demands from the fertilizer industry. These situations resulted in the poor market performance of calcium propionate as the supplier and consumer sentiments remained very muted throughout the discussed span of time.

Europe

The bearish market performance of calcium propionate in the Asian region almost mirrored the European markets. Lacklustre demands from the consuming sectors kept the calcium propionate price analysis of the said duration tepid. Ease in freight charges with normalizing crude oil prices was also responsible for cheaper procurement by regional calcium propionate suppliers. Overall, a dull market run was experienced by calcium propionate during the said period.

North America

Following the global sliding trend, the American calcium propionate market performed very poorly at the price scale. The hikes in inflation and interest rates were detrimental to the region’s industrial sector. Further, the bleak demands from the downstream fertilizer sector affected the price trend of calcium propionate.

Analyst Insight

According to Procurement Resource, fluctuations are anticipated in Calcium Propionate markets going forward since the upliftment in the demand equation will be critical for improvements in the trade fundamentals.
 

Calcium Propionate Price Trend for the First Half of 2023

Asia

In the Asia Pacific market, the price trend of calcium propionate in the first quarter was challenged by the weak demand and rising level of stockpiles. In addition to this, the upstream cost of Ethylene also failed to provide the required support. As a result of these factors, the price trend of calcium propionate faced southwards in the second quarter. The second quarter was also negatively affected by fluctuating market sentiments and collapsing cost of feedstock materials that kept the price trend of calcium propionate in the negative zone.

Europe

The first quarter witnessed a falling trajectory in the prices of calcium propionate as the demand for the product remained weak. The high levels of inventories and a significant drop in the cost of feedstock materials had an adverse effect on the market activities, especially the production rates of calcium propionate.

In the second quarter, the sea routes from China to Europe became more efficient, which led to a drop in the cost of trading, which also influenced the price trend of calcium propionate negatively. In addition to this, the subdued demand forced the manufacturers to reduce their price quotations, which eventually pushed the prices of calcium propionate into the negative zone.

North America

The price trend of calcium propionate in the North American region mirrored the trend seen in the Asia Pacific and European regions. In this region, too, feeble demand and the high level of inventories proved to be a problem for the market of calcium propionate in the first quarter.

The market activities of the downstream industries in the second quarter faced the challenges of soaring rates of inflation, oscillating economic conditions, and oversupply of calcium propionate in the region. In addition to this, the ongoing Russia-Ukraine crises also resulted in high fluctuations in the US market that ultimately resulted in the fall in the price trend of calcium propionate.

Analyst Insight

According to Procurement Resource, the price trend of Calcium Propionate is estimated to follow a southward trajectory. The declining demand due to oscillating market conditions and high levels of inventories will prove to be a problem for the calcium propionate market.

Procurement Resource provides latest prices of Calcium Propionate. 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.