Amid Improve Downstream Demand, Calcium Carbide Prices Gain Upward Momentum

The price trends of Calcium Carbide have inched upward amidst an increment in inquiries from the downstream construction markets. China's economic opening following the lifting of COVID restrictions allows for a quick recovery in economic activity. Additionally, inflationary pressures started to lessen, and the situation of the global economy also improved.

The market participants have reported that the rise in demand from the downstream construction sector has strengthened the market value of Calcium Carbide in the domestic region of China. The downstream Polyvinyl Chloride (PVC) market had a favorable effect on Calcium Carbide's cost. The downstream customers were encouraged to purchase Calcium Carbide to ramp up production. However, after the Spring Festival, the futures market price dropped sharply, driving the spot market of Calcium Carbide price to lower. Moreover, Semi-coke costs in the domestic market remained constant. The upstream and downstream of the semi-coke firms had a wait-and-see attitude, all coal mines had not yet begun activity, and the market was quite pessimistic about coal prices.

Furthermore, According to the data, the Purchasing Managers' Index (PMI) rose to 47.3 in January but stayed below 50 points in the German market. The input cost pressures were easing in European countries and softening the downturn that occurred in economic activities with declining TTF Natural gas costs. Furthermore, Brent Crude Oil costs have also fluctuated in a narrow range. The inflationary pressures have also been progressing in a southward direction, strengthening consumer sentiments. As per the market participants, the demand from the downstream steel industries has accelerated and caused a rise in manufacturer quotations. The ChemAnalyst database has shown that the price of Calcium Carbide has been increased by USD 30 per ton on an m-o-m basis in January 2023.

As per the pricing intelligence of ChemAnalyst, the rise in construction activities with improving economic conditions is likely to cause an upward shift in the price realizations of Calcium Carbide in the regional markets. The cost support from energy material will remain volatile, and it might pressurize the pricing dynamics of Calcium Carbide. However, the demand from the downstream PVC industries is anticipated to be at high levels in the coming months.