Reasons for price fluctuations of industrial grade calcium oxide
Industrial grade calcium oxide (quicklime), as a basic chemical raw material, is subject to multiple intertwined factors affecting its price fluctuations, exhibiting regional, seasonal, and industry cyclical characteristics.
1. Production cost drives price center
Raw material and energy costs are the core variables of price fluctuations. The cost of limestone mining varies significantly due to resource taxes and transportation distances, while the price fluctuations of anthracite, as the main fuel, directly affect the manufacturing cost of calcium oxide. For example, data from January 2025 shows that a company in Hebei province reduced its ton cost by about 15% by using low-grade coal gangue to replace some smokeless coal, while a company in Sichuan province was affected by high-altitude transportation costs and had a ton price 200-300 yuan higher than in North China. In addition, the investment in environmental protection equipment (such as desulfurization and denitrification devices) increases the cost of small and medium-sized enterprises by 10% -15%, further pushing up terminal prices.
2. Increased supply-demand relationship and short-term fluctuations
The seasonal demand differences in the construction industry are significant. When infrastructure projects are concentrated in spring, the procurement volume of calcium oxide in North and East China regions increases by 30% -50%, and the price rises by 10% -18% in the short term. And the winter shutdown in the north led to a sharp drop in demand, with prices dropping by 5% -8%. Uneven distribution of production capacity also exacerbates fluctuations. When there is overcapacity in limestone rich areas such as Guangxi and Yunnan, enterprises seize the market by lowering prices, and the ton price can be as low as 380-450 yuan. However, in areas with stricter environmental policies (such as Beijing Tianjin Hebei), due to capacity contraction, prices remain at a high level of 600-750 yuan.
3. Policy and market structure reshape the price system
Environmental inspections have led to the elimination of outdated production capacity. With the increase in industry concentration in 2024, top enterprises will reduce costs through large-scale production, creating a buffer against price fluctuations. But international trade frictions may lead to export restrictions, such as when orders in the Southeast Asian market decrease and domestic companies switch to domestic sales, triggering price wars. In addition, high-purity (≥ 90%) calcium oxide has a high technical threshold and a price premium of 30% -50% compared to ordinary products, while food grade and pharmaceutical grade products are affected by certification barriers and have greater price fluctuations.
Future trend: With the advancement of the "dual carbon" target, low-carbon production processes (such as waste heat recovery) will reduce energy consumption costs, but carbon emission quota trading may increase ton costs by 50-80 yuan. Enterprises need to balance cost pressures and market demand through technological upgrades and regional collaboration to avoid drastic price fluctuations.
