Why Does the Price of Calcium Metal Always Fluctuate So Much?

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Current Price of Calcium Metal in China Market 

According to the market consultant of zxferroalloy, the price of calcium metal products is stable.  At present, the Chinese market transaction report shows that the Shanxi Wenxi area crude calcium metal mainstream transaction price is maintained at ¥17,500-18,500CALCIUM METAL WIRE HENAN ¥20,000-21,000. CALCIUM METAL GRAIN ¥19,800-20,800. 

Since September 2022, the operation of metal calcium manufacturers in Anyang, Henan Province, has been stable, and those previously affected by the epidemic have resumed production.  Henan area calcium metal manufacturers revealed that the downstream end-user production of calcium metal products is relatively stable at this stage, manufacturers’ quotations, and market transactions also maintain stability.

calcium metal price in China Market 2022 today current
calcium metal price in China Market 2022

Will the Price of Calcium Metal be Stable for a Long Time?

The answer is no, the price of calcium metal is very volatile.  As can be seen from the price chart of calcium metal, the price of calcium metal has been on a roller coaster from the second half of 2021 to the beginning of 2022.  Even if the price has tripled in a month, the price of calcium metal may suddenly plunge, causing heavy losses to middlemen or end users. 

pure calcium metal price ( Ca 98.5%) in China Market 2021-2022
pure calcium metal price ( Ca 98.5%)

Factors Affecting the Calcium Metal Price 

Why is the price of calcium so volatile?  zxferroalloy market consulting analysis of the main reasons for the following. 

1. Affected by market supply and demand 

Calcium metal is mainly used in steelmaking and cored wire production.  End-user production plan changes, resulting in demand changes.  The production of calcium metal depends on raw materials and electricity.  If there are policy changes, such as limiting production and electricity, the production of calcium metal will be greatly affected.  However, calcium metal manufacturers are mainly concentrated in Shanxi, Henan, and other places. Once the policy changes, the whole production area will be affected, thus affecting the output of calcium metal. 

2. Preservation threshold of calcium metal products 

Most ferroalloys are easy to store, and many large Chinese producers or traders have large warehouses in factories or ports.  The storage of calcium metal is complicated because calcium metal is dangerous and needs to be sealed with argon gas.  In order to ensure product quality and safety, argon gas should be replenished once every three months.  Dangerous goods need professional dangerous goods warehouses, few ports can provide metal calcium storage services.  Pricing power is therefore in the hands of a small number of manufacturers.  Once the market demand rises, the manufacturers will combine to raise prices.  On the other hand, if the market demand for calcium metal is low, the price of calcium metal will suddenly dive.

3. The Raw Materials of Calcium Metal

Most Chinese calcium metal manufacturers use the reduction process to produce calcium metal, mainly from limestone and aluminum.  The price fluctuation of aluminum directly affects the production cost of calcium metal. In addition, we mentioned above that the energy cost affects the production cost of calcium metal.

When to Buy Calcium Metal?

This is a good question. In order to reduce the cost of raw materials, and obtain the maximum benefit, we should choose a good time to buy calcium metal.

  • The calcium metal supply is sufficient, and manufacturers ask for orders at low prices. To mitigate the economic impact of the pandemic, China’s current policy is Ensure people’s well-being and promote development. The calcium metal plant production recovery by policy support.
  • The raw material prices are low. In the first half of 2022, the raw material price of calcium metal decreased. By now it has hit rock bottom. According to the production manager of ZXferroalloy, the raw material of calcium metal has an upward trend.
  • Adequate energy supply. In the wet season (from May to August), the energy supply is sufficient. However, in the dry season (from October to March) is a lack of energy. With the winter heating seasons (from November to January) coming the energy shortages have become more acute.
  • The cheap freight. Now the sea freight is relatively low. As a dangerous and easily oxidized product, calcium metal can only hold 10 to 14 tons in a small container due to the special packaging method, so the cost of sea transportation is relatively high.  Therefore, before Christmas or the New Year, sea freight increases, and it is difficult to book metal calcium space.

Now is a good time to order calcium metal, any requirements on calcium metal please contact us as soon as possible.

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