Plummeting Downstream Polyvinyl Chloride Pressurizes Calcium Carbide Market Sentiments
- 22-Jun-2022 4:52 PM
- Journalist: Li Hua
Shanghai, China: The spot prices of Calcium Carbide in China have stagnated due to sluggish terminal demand fundamentals this week. Since the beginning of this month, the pricing patterns for calcium carbide have been on a downward trend due to the dropping upstream coking coal prices and the weak downstream demand from the construction industries. As per the latest estimates by ChemAnalyst, in the regional market of China, the price of calcium carbide has dropped approximately 2 percent from last week.
Recently, global crude oil prices have changed their existing upward trajectory amidst the recession worries brought on by restrictive monetary policies by central banks, which have put pressure on the crude oil supplies for production capacities. As per the recent market survey by ChemAnalyst, the prices for upstream coke have declined recently, backed by steady production operations in the mining area of Shanxi, China. As a result, the price negotiations of calcium carbide have been under sufficient pressure among the manufacturers. Thus, the cumulative effect of bearish downstream market sentiments and stable coking coal offtakes has provoked the calcium carbide market to remain unchanged this week.
Furthermore, when interviewed, a leading PVC market player has informed that the surplus availability of PVC in the Chinese market and elevated sales pressure have softened the price trends. The traders were reluctant to clear out their existing inventories to start fresh production, thus concluding the export offers at lower prices. Also, the tumbling offers for the downstream Polyvinyl Chloride (PVC) sector have weakened the market sentiments and contracted the operational profits for Calcium Carbide in the domestic region. Besides, the spot prices for downstream Polyvinyl Chloride have observed a significant drop of around 6% in the last two weeks of June 2022.
According to ChemAnalyst, the prices for Calcium Carbide are anticipated to remain firm or decline in the upcoming period if low energy prices are sustained for a prolonged period. The weakened demand from downstream PVC is also projected to substantially affect the value chain of Calcium Carbide in the upcoming weeks.