Global Calcium Carbide prices soaring owing to skyrocketing energy costs
- 31-Mar-2022 9:43 AM
- Journalist: Peter Schmidt
The prevailing Russia-Ukraine conflict surged the prices of various commodities, especially metals, crude oil, and energy. Among these commodities, Calcium Carbide prices also showcased an upward trajectory in March due to global soaring energy costs. Moreover, the significant rise in demand for Calcium Carbide from various downstream industries also contributed to this hike in the global market. Since February, Calcium Carbide prices have witnessed continuous growth of 8% in the global market.
In Latin America, the downstream Polyvinyl Chloride (PVC) witnessed a strengthened demand outlook, mainly from Argentina. The soaring prices of PVC in Argentina are mainly backed by bullish buying activity. This increased demand for PVC was mainly followed by the fear of scarcity of material due to the ongoing geopolitical pressure from Eastern European Nations and supply disruptions. Moreover, persistent increase in crude oil prices also soared the inflation in the Latin America market.
The downstream PVC in European nations has been limited during the past few weeks as manufacturers delayed the deliveries amidst the low running inventories and geopolitical entanglement in the market dynamics, due to existing geopolitical pressure. In general, the overall market for Calcium Carbide remained highly volatile because of soaring crude and energy costs. Recently, major PVC manufacturers in Europe planning to put energy surcharges for April. However, In China, due to imposed restriction policy, the market for Calcium Carbide is unstable. The prices of Calcium Carbide settled at around USD 700 per tonne on March 30, 2022.
As per ChemAnalyst, "Calcium Carbide prices are likely to rise backed by the hike in the prices of crude oil. " Calcium Carbide prices rising in the month of March, owing to the tight availability of Calcium Carbide in the global market and a hike in energy prices.