Vigorous Downstream Inquiries Propel Calcium Carbide Market Sentiments in China

Shanghai, China: In the Chinese domestic market, the price trends of Calcium Carbide have expanded entering August 2022. Amidst the intensified downward pressure exerted by the volatile global energy prices brought on by sanctions by Western countries on Russia following its invasion of Ukraine, the Carbide price offers have accelerated against the backdrop of rising inquiries from the downstream construction sector in the regional market.

As per the latest data, the Calcium Carbide offers have demonstrated a surge of nearly USD 14 per ton on August 5th compared to last week's observed market value. The market players have reported that the hiked interest rates by the Federal Reserve have improved the macro shipments. In addition, due to the curtailed level of coking coal stockpiles in steel and plants, the pricing effect of the upstream Calcium Carbide has been amplified in the domestic market. The real estate sector has stabilized as output and sales of vehicles have escalated, further supporting the increased values of Calcium Carbide in China. Moreover, the reduced exports from Russia have benefitted Chinese traders. The rising exports have supported China's steel production, strengthening the demand dynamics of upstream Calcium Carbide.

On the other hand, the downstream Poly Vinyl Chloride (PVC) market in China has observed fewer offtakes from the downstream construction sector amid seasonally weak demand; The major enterprises have been undergoing planned maintenance owing to slower-than-expected market growth of PVC. The plummeting downstream PVC demand has pressured the market sentiments of Calcium Carbide in the domestic market.

As per ChemAnalyst, the price trends of Calcium Carbide are likely to witness an upward trajectory in the near term. The downstream manufacturing units have been gradually ramping up, fueling the market fundamentals for Calcium Carbide and its derivatives. In addition, the burgeoning raw material costs will prompt upward pressure on the manufacturing costs of Calcium Carbide, leading to its rising market value in the forthcoming weeks.