Calcium carbide prices were pressured in June across Asia and Europe, as persistent weakness in downstream demand and weak feedstock costs weighed on market sentiment. Cautious buying and a build-up of inventories kept the prices from recovering, with buyers concentrating on essentials only.
In China, calcium carbide prices were subdued for the month, owing to sluggish demand from the downstream PVC-producing industry. PVC producers kept operating at high capacities at the beginning of the month, but offtake was weak as temperatures soared and many businesses moved into seasonal slowdowns, leading to reduced carbide consumption.
On the supply side, Chinese calcium carbide manufacturers continued steady operations, but weak export interest and sluggish domestic orders led to rising stock levels. Feedstock coke prices dropped, while lime prices remained flat, offering no cost-side support.
Beiyuan Group’s calcium carbide subsidiary, Jinyuan Chemical, has been shut for three months due to persistently low calcium carbide prices and high production costs. According to the notice, Jinyuan employees will be on leave until July 31, 2025, with the timing for restart being uncertain amid weak PVC market conditions.
Downstream demand remained weak, particularly from PVC, with buyers limiting purchases to just-in-time needs. End user construction activity across China remained muted, further limiting demand for calcium carbide-based materials. Although the pace of decline showed slight improvement compared to April, extreme heat and slow recovery in infrastructure limited any meaningful demand boost.
By late June, sentiment in China’s calcium carbide market remained cautious. Export activity continued to lag, especially as regional markets like India and ASEAN faced monsoon-related disruptions, reducing orders for PVC and other carbide-linked products.
In India, calcium carbide demand stayed low amid the onset of the monsoon season. Construction activity slowed across key regions, and traders reported limited movement. Rain delays, a lack of labor, and sluggish project commencement continued to keep downstream demand from the cement and PVC-producing segments dull.
In Europe, particularly in Germany, calcium carbide prices remained weak due to stagnant construction activity and low demand for acetylene and PVC derivatives. Buyers avoided bulk deals, sticking to spot transactions amid poor project visibility. Port congestion at Hamburg added to delays, though overall inventories remained adequate.
As per the ChemAnalyst, calcium carbide prices are likely to remain under pressure. High inventories in Asia, sluggish construction in India and Europe are likely to keep demand dull. Buyers in key markets are likely to postpone new orders until demand momentum is visible.
