Calcium Carbide Prices Under Pressure Amid Sluggish Demand in Asia and the USA
Calcium Carbide Prices Under Pressure Amid Sluggish Demand in Asia and the USA

Calcium Carbide Prices Under Pressure Amid Sluggish Demand in Asia and the USA

  • 09-Oct-2024 4:30 PM
  • Journalist: Bob Duffler

During the first week of October 2024, Calcium Carbide prices in Asia and the USA remained under pressure due to weak demand from downstream sectors, notably PVC. In Asia, bearish market sentiment, influenced by multiple regional factors, played a crucial role in keeping Calcium Carbide prices subdued.

In China, the Calcium Carbide market faced a sluggish demand environment from the downstream PVC sector. The domestic PVC spot market remained weak, characterized by fluctuating prices and minimal trading activity. Despite slight production cuts in some plants and an uptick in coal prices, provided cost support, overall demand for Calcium Carbide stayed weak. The market mood was further dampened by golden week holiday in China, reducing procurement activities as most industrial operations scaled down for the period. Traders and manufacturers in the Calcium Carbide industry saw limited opportunities for recovery in October, as the slowdown in demand outweighed any potential short-term boosts in prices.

The reduced demand from the PVC market, was compounded by a cautious approach from downstream buyers. The weak purchasing momentum was reflective of lower construction activities due to holiday period. Total sales for China's top 100 real estate companies from January to September 2024 reached 2,969.94 billion yuan, a steep 38.8% year-on-year decline, dampening demand from downstream sectors. While Chinese exports offered some price support, the overall domestic market remained lethargic. Furthermore, cost support from feedstock coke, a critical raw material for Calcium Carbide, was insufficient to bolster prices significantly, as weak demand exerted downward pressure across the value chain.

In India, Calcium Carbide prices also came under significant pressure. The downstream PVC market, saw reduced demand due to a slowdown in construction activities. Several factors contributed to this downturn, including delayed government spending following the general elections, unusually high monsoon rainfall, and widespread flooding across key regions. These disruptions in infrastructure development and real estate projects led to a sharp decline in PVC demand, thereby limiting Calcium Carbide procurement. Additionally, the Indian market faced high inventories of Calcium Carbide, further pushing prices down as suppliers sought to clear excess stock amidst sluggish demand.

In the USA, the Calcium Carbide market mirrored the weak demand trends seen in Asia. Domestic demand was tepid, influenced by reduced construction activities and lower consumer confidence in the broader economic outlook.

Looking ahead, Calcium Carbide prices are anticipated to remain weak throughout October, as both China and India experience peak holiday seasons. This will lead to a continued reduction in demand from domestic downstream industries, particularly PVC.  

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