Calcium Carbide prices declined across Asia in early June 2025, driven by weak cost support from feedstocks and poor downstream demand, especially in the PVC Industries. High operating rates and elevated inventories weighed on market sentiment in China, Japan, and South Korea. With production continuing at strong levels and no clear recovery in demand, Calcium Carbide prices are expected to remain under pressure.
In China, Calcium Carbide prices continued to fall due to weak feedstock trends and sluggish PVC demand. Feedstock Coke prices dropped further, as factories ran at high capacity while offtake remained slow. Other feedstock, Lime prices stayed stable, but the decline in coke costs drove overall production costs down.
Inventories grew across major regions, with buyers limiting purchases to cover only essential needs. High PVC plant operating rates and low spot prices contributed to oversupply, and many downstream processors showed little interest in restocking. Procurement activity remained light.
Manufacturers also faced broader pressures from China’s manufacturing sector. Export orders fell in May 2025 amid ongoing U.S. trade friction, making it harder to clear stocks through foreign sales. Real estate stayed weak in May, though the slowdown eased a bit from April.
Extreme summer heat across Asia, further limited construction activity, further curbing demand for Calcium Carbide-derived PVC products. With seasonal demand slowing and operating rates staying high, expectations of short-term price recovery remain limited.
Additionally, some producers reported that planned maintenance had concluded, boosting overall supply. As plant utilization rose, the gap between production and consumption widened. Traders remained cautious and avoided bulk commitments.
In South Korea, Calcium Carbide demand remained soft due to weak construction-related activity and sluggish PVC production. Construction investment continued to decline, limiting broader domestic demand recovery. Production growth in the industrial sector also slowed.
Exports weakened, particularly in industries impacted by rising U.S. tariffs. These developments, combined with persistent inventory buildup, led downstream buyers to remain cautious. Market participants reported limited inquiries and small-quantity transactions.
Japan’s Calcium Carbide market continued to face challenges amid subdued demand in downstream PVC applications. High stock levels led some producers to scale back output. Real estate oversupply and weak consumer sentiment continued to hold back demand.
Despite new project announcements, Japan's housing starts declined recently. Shrinking population, Rising mortgages rates, Inflation and demographic shifts further constrained construction activity.
Calcium Carbide prices are likely to remain weak in the near term. Calcium carbide output continues to rise after maintenance, while downstream PVC demand is expected to stay limited. High inventories and seasonal disruptions from summer rains may also affect the calcium carbide demand.
