Anchored Downstream Demand Models Stable Calcium Carbide Market
- 03-Jun-2022 5:36 PM
- Journalist: Timothy Greene
As per the ChemAnalyst, the price of Calcium Carbide has remained stable since last week in China. The resilience in upstream coke and feeble buying sentiments for downstream Polyvinyl Chloride (PVC) has contributed to the sturdy price trend of Calcium Carbide. Since the last month, the offered prices have witnessed an upward trend followed by moderate fluctuations at month-end.
As the COVID restrictions are being lifted in China, the production activities are gradually coming on track after four months of lockdown restrictions. At the same time, Spot market players will try to be on the front foot after overcoming supply disruptions. It is noted that amid the soaring crude oil costs, the prices of Calcium Carbide in the Chinese Market were observed at USD 656 per tonne yesterday.
In India, the prices of PVC were assessed following a modest bearish trend. According to a major manufacturer, the cumulative effect of persistent declining demand and generous availability of the product in the domestic market is thriving the prices to stay sturdy. Moreover, the European market is experiencing a bullish trend in the upstream energy cycle due to the ongoing geopolitical tension between Russia and Ukraine. A statement from European Official has surfaced saying that 90% of oil imports will be cut down from Russian suppliers, leading to severe gyrations in the commodities linked direct or indirect value chains. It is to be noted that these imposed sanctions will eventually benefit the other supplier countries to fill this gap.
Additionally, In Germany, the prices of downstream Polyvinyl Chloride have shown a declining price trend with a change of 3.4% this week. Sufficient supplies meeting the demand has showcased decreased production rate.
As per ChemAnalyst, the prices of Calcium Carbide may remain stable or rise with the demand for its downstream acetylene and PVC market. It is also forecasted that in the upcoming month, the prices of PVC may rise amid a boost in demand from the construction sector.
