For the Quarter Ending September 2024
North America
Calcium carbide prices in the North America maintained an upward trend throughout Q3 2024, supported by strong demand from downstream industries such as PVC. Compared to Q3 2023, prices saw a notable 20% increase in USA, underscoring robust market conditions. Additionally, the market experienced an 8.3% rise from the prior quarter, driven by high feedstock costs and increased export activity. US calcium carbide prices remained resilient, bolstered by disruptions like the shutdown of Orbia's PVC plant in Altamira, Mexico, and logistical challenges in Asia, strengthening American exporters' position in markets such as Africa and Asia.
Bullish market sentiment prevailed due to limited export availability and expectations of further price increases, driven by strong domestic demand and strategic moves by US exporters to fill global supply gaps. Rising freight rates and tight vessel availability also reduced the competitiveness of Asian PVC, enhancing the traction of US exports in key regions.
Ending the quarter, the price for calcium carbide in the USA was recorded at USD 1570/MT, FOB USGC, reflecting an overall positive pricing environment.
APAC
In Q3 2024, the Calcium Carbide market in the APAC region witnessed decreasing prices, reflecting a challenging quarter for the industry. The 11.6% change from the same quarter last year indicated a downward trend, with a 1.8% change from the previous quarter highlighting stability amid ongoing market pressures. Overall trading sentiment remained pessimistic, with traders facing sluggish demand and limited procurement activities.
Factors influencing these price declines included weak demand from downstream sectors, such as PVC, and high inventory levels, exerting downward pressure on prices. Seasonal factors, like heavy rainfall impacting construction activities, further dampened demand, contributing to the negative sentiment in the market. Japan, experiencing the most significant price changes, saw a significant shift between the first and second half of the quarter, emphasizing the deteriorating pricing environment.
The correlation between operational dynamics in the PVC sector and calcium carbide prices remained evident, with the latest quarter-ending price standing at USD 423/MT CFR Tokyo, indicating a continuation of the decreasing trend in the market.
Europe
Throughout Q3 2024, the European Calcium Carbide market experienced stable pricing, following increases from previous quarters. The quarter was marked by consistent market conditions, with Germany seeing the most notable fluctuations. Market prices were influenced by several factors, including stable raw material costs, steady demand from downstream sectors like PVC, and high natural gas prices driving production costs.
Compared to the same quarter in 2023, the European market showed a 15% increase, while prices rose by 2.8% from Q2 2024, reflecting a positive market trend. There was no significant price variation between the first and second half of the quarter, indicating sustained price stability. Additionally, robust export demand further kept the prices healthy, supporting the overall market trend.
Germany, a key market in the region, displayed resilience in calcium carbide pricing, closing the quarter at USD 1,235/MT FD Hamburg. This stability reflects strong market sentiment, supported by balanced demand and supply dynamics. The sustained equilibrium in pricing highlights the consistent nature of the calcium carbide market throughout the quarter.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Calcium Carbide market experienced a significant uptick in pricing, driven primarily by robust demand from downstream sectors and logistical challenges. The market remained bullish, propelled by increased procurement activities in industries such as PVC and acetylene production. The steady rise in Calcium Carbide prices was further supported by stable raw material costs and heightened export activities, despite moderate supply levels.
In the USA, the trajectory of Calcium Carbide prices was particularly pronounced. The market saw an upward trend, marked by an 8.6% increase compared to the same quarter last year, reflecting a strong recovery and escalating demand. This surge was further compounded by a 2% rise from the previous quarter, underscoring consistent market momentum. The first half of the quarter recorded notable price gains, culminating in a 6% increase by the second half, indicative of sustained procurement activities and supply chain adjustments in response to geopolitical tensions and rising freight rates.
By the end of the quarter, the price of Calcium Carbide in the USA reached USD 1498/MT, DEL Louisiana. This steady incline in prices highlights a positive pricing environment, driven by strong domestic demand and strategic market positioning by American exporters.
APAC
In Q2 2024, the Calcium Carbide market in the APAC region maintained stable pricing, reflecting consistent supply and demand dynamics. The quarter was characterized by a balanced market environment, with no significant disruptions in the availability of raw materials, particularly coke, which offered cost support. Steady demand from downstream sectors, notably PVC, contributed to stable pricing patterns. Market participants remained cautious, yet optimistic, as stable crude oil prices and moderate shipping rates helped sustain the equilibrium. The influence of geopolitical factors and energy prices was minimal, allowing the market to avoid volatility. Japan, however, experienced notable price variations within this stable context, primarily due to seasonality and the shifting demand in downstream industries. The overall trend in Japan showed a steady market with a subtle decline, with prices exhibiting a -2% change from the previous quarter in 2024. The first and second halves of the quarter saw no change in prices, highlighting the stable sentiment throughout. These fluctuations were largely seasonal, influenced by varying levels of construction activity and procurement cycles in the PVC sector. Despite these changes, the pricing environment for calcium carbide remained stable overall. The quarter-ending price in Japan stood at USD 431/MT, CFR Tokyo, indicating a market that, while experiencing minor adjustments, has managed to uphold a consistent pricing structure.
Europe
In Q2 2024, the Calcium Carbide market in Europe experienced a bullish trend, driven by several significant factors. The quarter saw robust demand from the downstream PVC sector and acetylene production, catalyzing an upward momentum in calcium carbide prices. This surge was further compounded by supply constraints due to the shutdown of a major PVC plant in Mexico and logistical challenges in Asia, which reduced the competitiveness of Asian PVC exports. Rising freight rates and vessel shortages also contributed to the tightening of the market. Germany, in particular, has seen the most pronounced price fluctuations within the region. Reflecting an overall positive pricing environment, the country's calcium carbide market has experienced an 8% increase compared to the previous quarter in 2024. This is indicative of strong market dynamics and consistent demand in key sectors despite external challenges. Concluding Q2 2024, the price of calcium carbide in Germany stands at USD 1220/MT, FD Hamburg. This sustained positive sentiment is a result of tight supply conditions, elevated freight rates, and resilient downstream demand, painting a bullish outlook for the calcium carbide market in the near term.
For the Quarter Ending March 2024
North America
The pricing environment for Calcium Carbide in the North America region during Q1 2024 witnessed a mixed trend. Overall, prices were influenced by various factors, resulting in both positive and negative trends. The market experienced an upward trend in prices in January and February, driven by factors such as increased demand from the downstream PVC and steel industries, particularly in the construction sector. The construction boom in the region, supported by government investments and streamlined regulations, has led to a surge in demand for essential materials like Calcium Carbide.
Additionally, supply constraints and an increase in the price of feedstock coke contributed to the rise in production costs for Calcium Carbide, further driving up prices. While in March, the prices of calcium carbide declined due weaknesses in U.S. construction spending, as reported by the Commerce Department.
Finally, the quarter-ending price for calcium carbide in USA was recorded at USD 1415/MT, FOB USGC, reflecting the mixed pricing environment observed during the first quarter.
APAC
In Q1 2024, the pricing of calcium carbide in the APAC region witnessed a consistent decrease, reflecting a negative pricing environment. Several factors contributed to this decline in market prices. The overall trend in the region was influenced by sluggish demand from downstream industries, such as PVC and steel, which resulted in a lack of momentum in the market. Additionally, the availability of affordable feedstock coke and coal further exerted downward pressure on prices, reducing production costs for calcium carbide.
China, being a key player in the calcium carbide market, experienced the maximum price changes. The market in China followed a similar trend to the APAC region, with decreasing prices throughout the quarter. The market was characterized by stagnation, limited trading activities, and reduced demand from downstream sectors. The decline in prices can be attributed to factors such as low procurement activities ahead of the lunar year, a slowdown in the construction industry, and a lack of enthusiasm for buying downstream. Compared to the same quarter last year, there was a significant decrease of 21% in calcium carbide prices. Looking at the previous quarter in 2024, prices declined by 10%. Furthermore, there was an 8% decrease in prices between the first and second half of the quarter. In line with the overall downward trend, the quarter-ending price for calcium carbide in China was USD 391/MT FOB Qingdao.
Europe
During Q1 2024, the pricing landscape for Calcium Carbide in Europe exhibited a diverse trend, marked by a mix of positive and negative sentiments. Various factors influenced prices across the region, leading to fluctuations in different directions. Germany experienced notable price shifts during this period.
One of the key factors driving the price increase in January and February was the heightened demand for calcium carbide in the steel and pharmaceutical sectors. The surge in steel sales in Germany has led to increased competition for essential raw materials, including calcium carbide. Additionally, disruptions in the supply chain, such as the strike by train drivers in Germany and delays in shipping routes, have further impacted the supply of calcium carbide, contributing to the price increase. The European market has also been affected by global factors, such as supply disruptions in the Red Sea and Panama Canal, which have increased freight charges and logistics challenges. While prices declined in March due to oversupply and low procurement activity observed in the domestic market of Germany due to slowdown in construction activity.
Finally, the quarter-ending price for calcium carbide in Germany was recorded at USD 1185/MT, FD Hamburg, reflecting the mixed pricing environment observed during the first quarter.
For the Quarter Ending December 2023
North America
In Q4FY23, Calcium Carbide prices in the North American market exhibited a varied trajectory. In October, the USA market witnessed elevated prices driven by robust demand from downstream construction industries. Construction spending in the United States rose by 0.4%, supported by strong activities, boosting Calcium Carbide prices. Despite a mid-October decline in oil prices, ongoing conflicts in the Middle East introduced volatility.
The US markets rebounded after the Federal Reserve maintained stable interest rates, reflecting economic resilience. The unexpected rapid expansion of the US economy in Q3 strengthened market dynamics. November saw a decrease in Calcium Carbide demand due to weak support from low crude and natural gas prices. The downstream steel industry faced challenges, with U.S. Steel announcing the closure of its UPI operations, impacting national steel prices and availability.
December witnessed a price increase influenced by strengthened cost support from feedstock coke. Active demand from the construction sector, evidenced by a substantial increase in construction jobs, boosted market sentiment. Import challenges from Asian nations faced higher quotations due to tensions in the Red Sea, and shipping costs doubled since November. Challenges at the Panama Canal added complexity, limiting vessel transit. These factors contributed to the overall mixed sentiment in the Calcium Carbide market during Q4FY23. As of December, Calcium Carbide prices in USA were assessed at USD 1390/MT, FOB USGC
APAC
In Q4FY23, Calcium Carbide prices displayed mixed sentiment in the APAC market. The initial two months of the quarter saw a decline in calcium carbide prices in China, marked by limited procurement from downstream construction industries. Simultaneously, swift imports of petroleum coke at the port were observed, yet holiday-related transportation limitations resulted in increased storage, ensuring sufficient availability of raw materials for Calcium Carbide manufacturers. The weak performance of the construction sector over the past few quarters impacted real estate development investment in China, decreasing by 8.8% year-on-year to 7,690 billion RMB and exerting pressure on key raw material markets, including Calcium Carbide. Market participants noted a contraction in new export and import orders, reflecting manufacturers' challenges in securing foreign buyers and reducing orders for components used in finished goods. Despite this, the movement of finished goods remained unimpeded, with no observed supply-chain bottlenecks. In December, calcium carbide prices rebounded, driven by high demand from the downstream acetylene sector, particularly in the automotive industry. This surge was attributed to the widespread use of acetylene in welding, a crucial process extensively employed in joining metal components to form the structural framework and body of vehicles. As of December, Calcium Carbide prices in China were assessed at USD 434/MT, FOB Qingdao.
Europe
In Q4FY23, Calcium Carbide prices in the Europe market displayed a positive trend throughout the final quarter, maintaining their upward momentum in the domestic market of Germany. The sustained price increase in Germany can be attributed to manufacturers implementing production cuts, resulting in limited availability of finished stocks of Calcium Carbide. Consequently, manufacturers opted to pass on the price hike to downstream firms to secure their profit margins. Market sources highlighted the significant impact of recent geopolitical events, such as escalations in the Israel-Palestine conflict, ongoing Russia-Ukraine tensions, and shifts in the global energy market, on the European chemical industry. These events led to continuous fluctuations in chemical raw material prices, affecting terminal demand on a broader level. Despite the underwhelming performance in recent quarters, many prominent domestic chemical plants synchronized their scheduled maintenance shutdowns due to lackluster demand from downstream industries. Notably, Vinnolit GmBH, a downstream PVC manufacturing plant in Burghausen, underwent a maintenance shutdown. The European Construction Industry Federation reported that in Germany, 81% of companies faced potential risks due to escalating material and energy prices in 2023. Conversely, the Federal Statistics Office noted an unexpected decrease in the inflation rate in Germany to 3% in October, reaching its lowest annual level since June 2021. This broad-based deceleration in inflation contributes to the purchasing power of terminal consumers in the largest economy of Europe. As of December, Calcium Carbide prices in Germany were assessed at USD 1145/MT, FD Hamburg.
