For the Quarter Ending June 2023
North America
Throughout the second quarter of 2023, the prices of Acetylene have remained under pressure in the US market. The cost support from upstream Calcium Carbide was inadequate as its prices have remained on the lower end amid limited consumption from the downstream industries. Market participants have reported an abundance of Acetylene stocks which has increased pressure on the supply side. However, there have been no reports of port congestion in the US, so the movement of finished goods was unhindered. Amidst mild temperatures and reduced demand, relatively high natural gas production has led to adequate availability of input energy materials for downstream manufacturing firms. The impact of the most aggressive monetary policy tightening in decades and the slowdown of the US economy all argue in favor of weak economic activity. Furthermore, towards the second half of Q2, The pace of inquiries from the downstream construction sector. has remained insufficient to cause a positive shift in the pricing dynamics of Acetylene. The shortage of sufficient market momentum has lingered and weighed upon the price trends of key input raw materials, including Acetylene, in Q2-end.
APAC
In the Indian domestic market, the prices of Acetylene have demonstrated mixed market sentiments. The resilient manufacturing activities across the nation have led to stockpiling of the product, and as a result, the manufacturers have lowered their prices for the maintenance of market balance. In addition, foreseeing the drop in coal prices, freight charges, and raw materials prices, manufacturers were reluctant to build up their inventories to meet the growing demand from the downstream metal fabrication industries. The operating costs were also eased as India procured discounted Russian Crude Oil. As per the sources, Freight prices for a cargo of Urals oil loading at Baltic ports for delivery to Indian ports have dropped from for the shipment in early April by significant figures. Furthermore, towards the end of the second quarter, The demand from the downstream construction sector was active, as reported by market participants. The spot transactions were also effectively contributing to the upshift observed in the price realizations of Acetylene. Industrial production has maintained its momentum in the Indian domestic market. The availability of upstream Calcium Carbide stocks was sufficient to meet the demand from the downstream industries in Q2-end.
Europe
The prices of Acetylene have sustained their downward momentum in the German market in the second quarter of 2023. The declining costs of upstream Calcium Carbide have inflicted the manufacturing costs of Acetylene to settle lower. The demand from the downstream PVC industries has also remained inadequate, pressuring the market fundamentals of Acetylene among the manufacturers. Thus, with a decline in market transactions, the Acetylene manufacturers have opted for price cuts to stimulate new shipments and maintain market balance. On the input energy front, the European TTF benchmark fell to its lowest price ever, approximately €38/MWH, at April-end. The manufacturers have operated their production facilities at slightly lower rates to avoid excess stockpiling of products in the domestic region. The highest economy in Europe has faced soaring inflation, resulting in a wave of strikes as the workforce has demanded better wages to manage the increasing cost of living. The continued inflationary pressures have curtailed the purchasing power of the end-use industries. The underperforming manufacturing sectors contributed to a contraction in production activities across the country. As a result, the manufacturing PMI has remained in the contraction zone (Below 50 Points) throughout Q2.
For the Quarter Ending March 2023
North America
The prices of Acetylene have witnessed mixed market sentiments in the US market. The ease in input cost inflation and sufficient availability of upstream Calcium Carbide improved the market fundamentals of Acetylene in early Q1. The operating rate of manufacturing firms was regular, and there was sufficient availability of the finished goods in the domestic region. Furthermore, in late Q1, a Slowdown in consumption from the downstream construction sector hampered the upward momentum of the Acetylene prices. Foreseeing the decline in demand from the terminal market, the manufacturers have opted for a production cut for the sustenance of their profit margins. In addition, transportation costs have also plummeted amid a slowdown in market shipments.
APAC
In the domestic region of India, the prices of Acetylene have demonstrated a volatile trend in the first quarter of 2023. The prices have consistently escalated for two months owing to steady demand fundamentals. The manufacturing activities have been boosted amid strong economic conditions. The inquiries from the downstream metal fabrication industries have remained sufficient and contributed to the market growth of Acetyleme in the domestic region. However, the prices have started to decrease towards the end of Q1. The stocks of Acetyelene were at the higher end, increasing the supply-side pressure. The ease in operational costs brought on by falling Crude oil prices and plummeting upstream Calcium Carbide costs has also supported the downturn observed in the Acetylene price realizations. Therefore, Dissolved Acetylene Gas Ex-Kolkata prices were settled at INR 371500 per ton in March.
Europe
Limited procurement from the downstream construction sector has pressured the market sentiments of Acetylene in the German market in Q1. The drop in upstream Calcium Carbide costs and elevated inventories have a combined effect on the downshift observed in Acetylene costs. The restocking has also reached its peak levels, and the market transactions were fewer and mainly based on rigid demand. The accumulation of finished goods has increased the shipment pressure on manufacturers, and consequently, Acetylene prices began to drop. Global economic headwinds such as spiraling inflation, tight monetary condition, and limited availability of input energy materials have impacted the market fundamentals of several petrochemicals, including Acetylene, on broader levels.
For the Quarter Ending December 2022
North America
In the US market, Acetylene prices have gained upward momentum in the fourth quarter of 2022. The cost support from upstream Calcium Carbide has escalated, and the Acetylene costs have remained on the higher end. The economic conditions in the US market have been impacted by rising interest rates and tight monetary policies. The operating rate of the manufacturing firms was regular and sufficient inventories were available. However, demand from the downstream construction sector didn’t improve much in the domestic region. Furthermore, towards the end of the fourth quarter, inflation started to ease, improving the market conditions. The market players have reported decreased shipping costs with no port congestion in December.
APAC
The prices of Acetylene have demonstrated mixed market sentiments in the Indian domestic market. The prices escalated in October, owing to steady demand for fundamentals. The cost support from upstream raw materials was also adequate and supported the rise in the market value of Acetylene. However, the prices declined later amidst the limited procurement from the downstream construction sector and ease in input costs. Furthermore, toward the end of the fourth quarter, the upstream Calcium Carbide costs increased and impacted the production costs of Acetylene. The manufacturing activities have been strengthened in India, and the market players have actively procured the material to supplement the downstream production. The prices of Dissolved Acetylene Gas Ex-Kolkata prices were settled at INR 385380 per ton in December.
Europe
The prices of Acetylene have remained buoyant in the European region. The curbed gas supplies and raging inflation has impacted the manufacturing activities in the German market. The production costs have been increased, and the manufacturers have increased their offers to maintain their profit margins. The upstream Calcium Carbide has also remained on the higher end and supported the rise in the market value of Acetylene. However, the inflationary pressures and high prices of goods have weakened the demand from the downstream construction and other end-use industries. The downstream purchases were limited, and the trading atmosphere was mild. On the supply side, there was adequate availability to cater to the downstream demand.
For the Quarter Ending September 2022
North America
The price trend of Acetylene has oscillated in the domestic market of the USA. The prices of upstream Calcium Carbide fell and then increased due to a surge in manufacturing costs across the European region. The market players have reported that the energy-supply crunch and volatility in natural gas supplies have deteriorated the market sentiments for Acetylene. Furthermore, the construction sector rebounded at the end of the third quarter. The supply chain pressures have been relieved as no port congestion has been observed. The manufacturing units have operated at a regular rate, witnessing the accelerated demand from the downstream construction sector. Thus, the prices of Acetylene improved at the Q3-end.
Asia-Pacific
The prices of Acetylene have demonstrated mixed sentiments in the Indian domestic market. The prices have first escalated due to a rise in demand from downstream PVC industries. However, the prices started falling against the backed drop of plunged upstream raw material costs. The adverse development in upstream Calcium Carbide has been reflected in the price realizations of Acetylene in the domestic region. The market players have reported that the inquiries from downstream PVC industries were limited, and the buyer was interested in a cheaper spot market. Furthermore, the monsoon season has impeded construction activities. Thus, the downstream inventories were less utilized. Consequently, prices of Dissolved Acetylene Gas Ex-Kolkata were settled at USD 4300 per ton in Q3-end.
Europe
In the domestic region of Germany, the exacerbated supply-side risk has intensified concerns over the production potential for various chemicals, including Acetylene. The growing global macro-stresses have impeded the market growth of Acetylene in the domestic region. The ample supplies and sluggish demand from the terminal sector have provoked the pricing dynamics of Acetylene to stagger in a downward trajectory in the German market. Also, the global logistics constraints brought on by the pandemic in China and port blockades have severely impacted the price value chain of Acetylene. On the upstream price front, the Calcium Carbide prices escalated in September due to a rebound in demand from the construction sector and impacted the pricing dynamics of Acetylene to improve at the end of the third quarter.
For the Quarter Ending June 2022
North America
The price trends of Acetylene have witnessed a downward trend in the second quarter of 2022. The price offers of upstream Calcium Carbide have dropped by nearly 10%, provoking negative cost pressure on the market values of Acetylene in the domestic region. The fallout after Russia's invasion of Ukraine has prompted uncertainties in terminal demand. Feedstock crude oil prices have also fallen, owing to recession fears brought on by tight monetary policy imposed by the US Federal Reserve. The demand from the downstream construction sector has also been crippled, leading to a decline in offtakes for the upstream Acetylene. As a result of plummeting downstream PVC demand from the construction sector and plunging calcium carbide costs, the spot offers for Acetylene has been significantly tumbled towards the end of the second quarter.
APAC
During the second quarter of 2022, the price trends of Acetylene have been observed to be mixed market sentiments. In India, the prices fell in the first half, owing to limited inquiries from the downstream construction sector. The resurgence of COVID cases in China and the Zero COVID Policy have severely hampered the global supply chain. The backlog of deliveries has resulted in plunging costs of upstream Calcium Carbide in China, which has exacerbated the decreased market value of Acetylene in India, as it majorly imports the raw materials from China. However, in the second half of Q2, the cost of crucial energy materials such as Pet Coke amid widespread supply bottlenecks has pushed the manufacturing costs up and substantially weighed on the increase in profit margins on Acetylene's market values. The escalated spot offers for upstream Calcium Carbide have pushed the manufacturing costs upwards, levying their direct impact on the benchmark prices of Acetylene in the domestic region. Overall, the Acetylene price offers has observed to slightly escalate at the end of the second quarter compared to observed Q1 costs.
Europe
In Germany, the Acetylene price offers have oscillated throughout the second quarter. Sufficient availability and lower demand from central Europe are weighing on the price movement of Acetylene in Germany. As per the traders, enterprises witnessed a gradual slowdown amid backlog orders, and downstream pipe manufacturers reported struggling with sluggish demand from the construction sector, provoking negative cost pressure on the price realizations of Acetylene in the regional market. In addition, enterprises have struggled with piled-up inventories, forcing them to make sales from the piled-up stocks at reduced prices. Moreover, Euro depreciation against the US dollar has also caused downward pressure on the spot offers for Acetylene towards the end of the second quarter.
For the Quarter Ending in March 2022
Asia Pacific
Acetylene prices in India witnessed an increasing trend of 5% owing to increased demand from the downstream PVC market. PVC market sentiments stayed strong in India, backed by pre-monsoon demand and limited supply. However, the cost of Acetylene-based PVC went bullish as the Chinese traders indulged in a heated battle among Asian suppliers.This month, the Chinese Acetylene-based PVC prices have forced local traders to be cautious about their pricing. According to Chinese dealers, the export volume has increased significantly to India as the Indian authority has removed anti-dumping duties of China-origin material. So, despite weak demand, there is an elevation in supply. In contrast, Japanese traders reduced hikes to compete with Chinese traders.
Europe
During the first quarter of 2022, Acetylene prices witnessed an increasing trend in Turkey due to logistics issues from downstream sectors. However, more than 20% of end-user products of Acetylene had been exported back to Russia and Ukraine. Till now, no new offers arrived from Russia. The closure of Ukrainian factories and sanctions imposed on Russia provoked a supply shortage of PE in Turkey. The Russia-Ukraine war has stretched the global supply chains, raised inflationary pressures, and elevated geopolitical tensions. As a ripple effect, the Acetylene prices in Europe increased by nearly 4% in Q1 of 2022.
MEA
In Africa, Acetylene gas showcased stable market dynamics in Q1 2022 due to delayed imports of downstream sectors from overseas. Since the invasion of Ukraine, the supply chain disruption began, further provoking rising inflationary pressures and elevated geopolitical tensions. Due to this, some market participants claim that higher freight charges and changing volume allocations impact the imports. Acetylene demand for wielding applications remained robust due to which Acetylene prices witnessed a rise by nearly 3% in Middle East. Moreover, since the western countries applied sanctions on the Russian fuel, the raw material prices surged and raised inflation over every commodity. It is anticipated that the Acetylene prices will soar in the upcoming quarters.
For Quarter Ending December 2021
North America
The Demand for Plastics in the US had increased by 3.9% in the last quarter of 2021 according to (ACC) American Chemical Council. The Demand for coal surged in Q4 2021 in the US and they increased the mining Production to 9.4%, Acetylene is used majorly in mining, so the prices of Acetylene increased in the final quarter of 2021 due to its sudden rise in demand. Despite the prices of Calcium Carbide being suppressed in the American market for Q4 its demand was high enough to keep the prices of Acetylene to keep rising in 2021’s Final Quarter.
APAC
The export and mining restriction in China had a devastating impact on Indian Acetylene market since 90% of upstream Calcium Carbide is being exported from China to India. The prices started to drop a little in late December 2021, as a repercussion of India exploring various other sources of upstream Calcium Carbide. China is the major exporter of upstream Calcium Carbide to substantial number of Asian countries like Thailand, Japan, and South Korea. Thus, the price trend of the Asian Acetylene market in the last quarter of 2021 increased effectively till the mid of December and prices dropped a bit when countries started figuring out other sources for upstream Calcium Carbide.
Europe
The European market of the upstream Calcium Carbide was spiraling up, due to the energy crisis in Q3 of 2021 in Europe and the facilities did not bounce back in last quarter. With the high feedstock prices and rise in demand from downstream metal fabrication industries and high welding needs of end-consumers (home improvement sectors were high in demand in Q4 of 2021) in Europe in the final quarter of 2021, the price trend of Acetylene in Q4 is increasing in the European market.
For the Quarter Ending September 2021
North America
Despite the uncertainties caused by the second wave in Q2, the market in the North American region remained steady and witnessed a high demand for Acetylene by various end-use industries. There was an increment in the pricing of Acetylene in Q3 after the industrial recovery due to winter storm, as many downstream manufacturers increased their production for Acetylene. The North American market experienced a surge in the demand for Calcium Carbide from the downstream Acetylene manufacturers during the third quarter.
Asia Pacific
During the third quarter in 2021, the prices of Acetylene witnessed a significant rise across the Asia Pacific region due to the high demand for Acetylene from the downstream industries. In China, limited mining activities followed by the government regulations to conserve energy have continued to cap the exports of raw material Calcium Carbide to several countries. Since Calcium Carbide is majorly imported in India, the prices of downstream Acetylene rose exponentially over the past few months. The issue of power curtailment in the Northern region with a target to reduce carbon development resulted in a continuous hike in the pricing trend of Calcium Carbide in the Chinese domestic market. The hiked prices of Calcium Carbide built up the wait-and-see sentiments among downstream Acetylene producers.
Europe
In Q3, the European market experienced a substantial demand for Acetylene gas from the industrial gases segment and somehow struggled to import sufficient gas to reduce the deficit. The prices underwent an exponential hike in July. The rising prices of feedstock Carbide and strong demand from the construction sector will dominantly drive the market trend for the rest of 2021. Larger price increases for construction activities and repair of vehicles will also keep the Acetylene consumption strong.
For the Quarter Ending June 2021
North America
Acetylene demand in North America remained stable this quarter, backed by improved consumption from the domestic downstream sectors. Post pandemic and winter devastation recovery, production from most of the downstream sectors increased which eventually surged the demand for Acetylene. Prices-maintained stability throughout the quarter, however some fluctuations were witnessed due to the transportation glitches in USA. In addition, demand for Calcium Carbide based Acetylene remained low throughout the quarter in USA in the meantime.
Asia
Acetylene prices rose effectively during this quarter across APAC region, supported by improvement in the demand from the downstream sectors in some Asian countries. In China, prices of Acetylene remained firm from domestic PVC segment, whose demand was bolstered by significant revival in economic activities in the country. While in India, prices climbed up effectively, taking support from curtailed production activities amid halted trading activities under pandemic mayhem. Therefore, prices of Acetylene improved from USD 3594/MT to USD 3762/MT during this quarter in India.
Europe
European market experienced firm demand for Acetylene gas from industrial gases segment, while the availability remained enough to satisfy the overall requirement. However, prices underwent a prominent hike, taking support from the global market. In addition, inflation and rising freight cost also impacted the overall price trend of Acetylene in Europe during this timeframe.
For the Quarter Ending March 2021
North America
Acetylene production in North America usually depends upon the availability of Liquified Natural Gas (LNG) across the region. After the devastating winter storm, approximately 7.4% of total LNG output was disrupted, this created a situation of a critical shortage in the region. Meanwhile, demand from downstream BDO (Butanediol) remained very high, thus raising the prices of Acetylene during the quarter. Price hike in Acetylene cylinders was also heard from major regional players, which contributed to the overall increment in the Acetylene export prices.
Asia
Demand for Acetylene in the Asian market remained mild to firm from downstream metal fabrication and BDO manufacturing segments, during Q1 2021. Chinese lunar holidays temporarily reduced the overall production output from China. However, several traders already kept their stocks high in advance to compensate with upcoming shortage. Despite of the advance stock’s accumulation, prices rose significantly in the Asian market during February. In line, Indian market witnessed a rise of 5.22% in dissolved Acetylene prices in January-March timeframe, prices settled at USD 4265.2 per MT in March 2021.
Europe
Like other regions, Europe also faced severe shortage of Acetylene to produce downstream chemicals like BDO and THF. The shortage was driven by lower imports from USA, as their own regional availability was running low due to lower domestic output. This led the prices to seek an upward trend. Besides, skyrocketing prices of shipping containers and freight cost also efficiently contributed to push up the prices of Acetylene across the region.
For the Quarter Ending September 2020
Asia
The Asian Acetylene sales showed volume improvement versus Q2 but maintained levels below the pre-COVID era. Higher margins due to pressured raw material could partially offset the decline in the producer’s margins. Resilient demand for the oxyacetylene cylinders as the construction activity clawed back from deep contractions faced in the previous quarter. However, major plant turnarounds heard at some Chinese Acetylene-based PVC plants pressured the demand patterns, meaning limited offtakes and subdued offers observed across the region. In China, FOB prices were well around USD 11000 per tonne in the second and third quarters and are expected to remain in this range in H2 2020 due to nearly stable market outlook.
North America
Acetylene demand in the America’s remained dampened during Q3 2020. Operations at the BASF's Geismar, Louisiana, petrochemical plant remained affected by the production outages caused due to Hurricane Laura, although with limited impact over the overall margins. The company’s Geismar Acetylene site holds the capacity of 130 tonnes per annum. The US industrial gas sector saw a mixed QoQ performance, driven by gradual shift in the demand for the medical gases such as Oxygen and Carbon Dioxide. However, demand for the dissolved Acetylene and other industrial gases remained subdued under the suppressed sales of welding hardgoods. Some anticipate the Acetylene growth to flatten out in both the Americas and Europe sequentially as surging COVID cases continue to weigh over the market activity.
Europe
COVID-19 pandemic hard hit the European Acetylene demand in Q2 and Q3 with a significant fall observed in the amount of in-person trade. As the majority population stayed at home under the pandemic-induced recession, limited Acetylene requirements were heard for metal cutting and construction projects. Players observed a pronounced drop in demands from the western Europe where the lockdown had been longer and more restrictive than in central, Eastern and Northern Europe. Demand for oxyacetylene from the civil infrastructure however remained a sweet spot in the eastern Europe. Some supply constraints surfaced as the leading producers announced maintenance turnarounds by the end of the third quarter to balance their inventories.
