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Despite Improvement in Economic Conditions, Calcium Carbide Prices End February 2023 on a Bearish Note
Despite Improvement in Economic Conditions, Calcium Carbide Prices End February 2023 on a Bearish Note

Despite Improvement in Economic Conditions, Calcium Carbide Prices End February 2023 on a Bearish Note

  • 01-Mar-2023 4:34 PM
  • Journalist: Patrick Knight

Beijing, China: Calcium Carbide's price trends dropped in late February amidst ample stocks and limited procurement from the downstream steel and other end-use industries. The Chinese economy has been back in business after facing significant headwinds last year. Although the economic recovery is yet to materialize into profit margins for the manufacturing firms, thus the Calcium Carbide market has witnessed bearish market sentiments throughout the mid-Q1.

As per the observed market scenario, the rebound in manufacturing activities across the Chinese market has made the Purchasing manager Index settle at 56.4 in February. According to the National Bureau of Statistics, the manufacturing firms ramped up output as the COVID-19 effect subsided and the sector witnessed economic stabilization initiatives.

However, On the demand side, In the same time frame, the Calcium Carbide restocking has also reached its peak levels, and the market transactions were fewer and mainly based on rigid demand. The accumulation of inventories has increased the shipment pressure on manufacturers, and consequently, Calcium Carbide prices began to drop. The ChemAnalyst database has shown that the price realizations of Calcium Carbide have witnessed a decrement of approximately 9% on the first march compared to the prices observed in the first week of February 2023 on a FOB basis.

Furthermore, the container rates have been moving back to their pre-pandemic levels. Amid a slowdown in global demand, exports from China have weakened, and the major Chinese container ports Shenzhen and Shanghai have witnessed a massive growth in the number of empty containers.

According to ChemAnalyst, the anticipated gradual improvement in downstream demand from the construction sector will strengthen the market sentiments and lead to positive developments in the price realizations of Calcium Carbide. Moreover, the volatility in input energy materials costs amid increased consumption will likely impact the market fundamentals of Calcium Carbide in the forthcoming weeks.

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