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Calcium Carbide Prices Surge Amidst Rising Asian Demand
Calcium Carbide Prices Surge Amidst Rising Asian Demand

Calcium Carbide Prices Surge Amidst Rising Asian Demand

  • 28-May-2024 6:24 PM
  • Journalist: Harold Finch

During the mid-May 2024, Calcium Carbide prices increased across Asia, driven by improved demand in key nations like China and India. Following the Labor Day holiday in China, increased negotiations in the feedstock coke market supported Calcium Carbide prices. The downstream PVC spot market also saw a significant rise, driven by strong futures market performance and a positive macroeconomic environment. This buoyant market led to increased enthusiasm for PVC inquiries and purchases, causing the mainstream transaction price in the spot PVC market to rise. Additionally, higher international crude oil futures provided further cost support. The trading sentiment in the Calcium Carbide market was positive, with traders actively procuring goods.

This uptick comes after a prolonged downturn in the Calcium Carbide market in China, which was primarily influenced by the demand for downstream PVC products. In recent months, cumulative Calcium Carbide production has notably increased compared to last year, with stable operating rates at around 70-80%. Despite initially lower operations, signs of recovery emerged as enterprises reduced load, boosting demand gradually. Rising energy and feedstock coke prices have led to a surge in production costs and freight rates, impacting sellers of Calcium Carbide from China and South Korea, as well as PVC markets in Southeast Asia. Despite these challenges, demand in the Asian market is moderate, worsening the loose supply situation and affecting the PVC market in the region. Market players foresee no immediate solution to the supply issues, causing a halt in PVC price momentum for now.

The downstream PVC market is experiencing a gradual uptick in demand, driven by Calcium Carbide's pivotal role in the recovery. This demand surge is mainly fueled by notable advancements in China's housing sector, despite its slower performance compared to last year, as evidenced by rising home prices. However, challenges persist due to lingering overcapacity, shaping market dynamics and raising industry concerns. In India, demand from various sectors like PVC, adhesive, and automotive industries has surged, supported by housing and automotive sector progress. Calcium Carbide remains crucial in this growth, especially in PVC production. Robust real estate growth and strong automotive sector demand underscore Calcium Carbide's importance. Overall, these positive trends underscore the resilience of the PVC sector globally, with Calcium Carbide's consistent availability crucial in sustaining momentum. As of the week ending on May 17th, 2024, the assessed price for Calcium Carbide stood at USD 385/MT FOB Qingdao, marking a 1.3% increase.

As per the ChemAnalyst, the Calcium Carbide markets are poised for uncertainty in the coming months, with various factors such as China’s domestic demand and India’s monsoon season expected to shape the market landscape. Potential policy changes also add to the market's unpredictability, necessitating careful monitoring and strategic planning by industry stakeholders to navigate through potential market shifts effectively.

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