Excess supply cuts prices
By Staff -- Purchasing, 4/9/1998
Domestic calcium chloride prices continue to weaken. "Calcium chloride flake and pellet prices are being aggressively sold at lower and lower prices," says a calcium chloride buyer located in the Midwest. Tags are softening because of excess supply and slow demand.In the South, market conditions are different. "Supply and demand are quite tight," says a spokesperson for Tetra Technologies. As a result, the company is instituting an average $8/ton hike on liquid calcium chloride. The actual amount of the increase is dependent on geographic area and end-use market.
U.S. bulk contracts for anhydrous-grade calcium chloride peaked at an average of $252/ton in the third quarter of 1997, according to Purchasing's monthly survey of buyers. In the fourth quarter, prices dropped to $247/ton. As 1998 began, tags continued to fall, averaging $230/ton in February.
Spot market pricing also is declining, falling from a high of $252/ton in the third quarter of 1997. These tags slipped to an average of $242/ton in the fourth quarter. In January and February, spot prices for anhydrous calcium chloride were down to an average of $230/ton.
There are more than 13 domestic suppliers of calcium chloride with total capacity of over one million tons/yr on a 100% basis. Calcium chloride is available in liquid, pellet, or flake form. Dow Chemical is the largest producer accounting for about 52% of North American capacity.
Capacity is increasing. Tetra Technologies reportedly is increasing its calcium chloride capacity by 45,000 tons/yr. Ambar Chemical purchased Akzo's salt facility in Manistee, Mich., and converted it to a calcium chloride plant. The unit began producing liquid product in September 1996 and flake- and pellet-grade material in December 1997. Ambar's calcium chloride capacity is at 300,000 tons/yr on a 100% basis.
Domestic demand has been weak. At close to 65% of demand, a major application for calcium chloride is snow and ice control. The past winter, especially in the Northeast, has been very mild, so consumption of calcium chloride for this application has been very slow. Other end uses include oil and gas, concrete, food, and industrial chemical processing.
Talkback
Related Content
Related Content
Sponsored Links
View All Blogs
Now Playing:
