Calcium Propionate Prices: Price, Pricing, Trend, News, Analysis

For the Quarter Ending September 2023

North America

During the third quarter of 2023, the North American Calcium Propionate market experienced a substantial devaluation. From July to September, CFR New York prices for Calcium Propionate plummeted from $1020/mt to $956/mt, signaling the conclusion of the quarter. This price downturn, reflecting a preference for reduced pricing, translated to an average quarterly decrease of 3.38%. The global Calcium Propionate market faced an oversupply challenge during this period, leading to a noticeable decline in market values. Compounding this situation, domestic traders strategically accumulated significant Calcium Propionate inventories. In a tactical move to mitigate potential losses, these traders lowered their price quotes, contributing to an overall market price reduction. Despite a modest slowdown in inflation in the third quarter, driven by significant economic shifts in the United States, market participants remained cautious due to the Federal Reserve’s decision to raise interest rates. The decrease in Calcium Propionate prices was primarily linked to a substantial reduction in the cost of its primary raw material, Propionic Acid, in exporting countries. This factor played a pivotal role in influencing the manufacturing cost of Calcium Propionate in those countries. Additionally, North American countries, major importers of Calcium Propionate, closely mirrored pricing trends observed in the Chinese market, where China serves as the primary exporter. Consequently, the third quarter of 2023 presents a unique opportunity for businesses and consumers to benefit from decreased pricing in the North American Calcium Propionate market.

Asia Pacific

In the third quarter of 2023, the calcium propionate market in the Asia Pacific region witnessed a significant and favorable shift. Prices declined from $850 per metric ton in July to $820 per metric ton FOB Shanghai in September. This price fluctuation indicated a noteworthy change, resulting in an average quarterly drop of 3.03%. A key factor contributing to this shift was the substantial decrease in calcium propionate prices driven by a notable reduction in raw material costs, specifically in propionic acid, within the domestic market. The backdrop of this price reduction was shaped by the economic landscape, particularly in China, the world’s second-largest economy. The Chinese economy experienced a slowdown extending from the first half of 2023 into the second half, casting a shadow over the start of the third quarter. This deceleration was attributed to a combination of factors, including increased deflation, a surge in youth unemployment, and weakened foreign demand. In terms of manufacturing, calcium propionate production in China closely aligned with customer demand, adapting to market dynamics. During this period, a decrease in demand was observed, not only domestically but also from international markets. This synchronized drop in demand further influenced market dynamics in the third quarter.

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In the third quarter of 2023, a significant shift in the pricing landscape of calcium propionate was observed in Europe, with prices dropping slightly from $980 per metric ton in July to $935 per metric ton CFR Hamburg by September. This pattern indicated a noteworthy price decline, resulting in an average quarterly decrease of 2.85%. This change was primarily driven by a global oversupply of Calcium Propionate, significantly impacting its market value. Adding to the complexity, domestic traders chose to accumulate substantial inventories of Calcium Propionate. To navigate this challenge and minimize potential losses, they strategically opted to decrease their price quotes, contributing to a broader market devaluation. The marked decrease in Calcium Propionate prices was linked to a significant reduction in the cost of its primary raw material, Propionic Acid. This pivotal shift influenced the overall manufacturing cost of Calcium Propionate in exporting countries, thereby driving prices lower. Additionally, the European market, as a major importer of calcium propionate, closely followed the pricing trends of the Chinese market, with China being a leading exporter. Consequently, this price decrease is reflective of broader global market dynamics.

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