During mid-December 2024, Calcium Carbide prices faced downward pressure globally due to a slowdown in the downstream PVC sector and weak cost support from feedstock coke. Sluggish construction activity and ample inventories further weighed on the market, signaling subdued trading sentiment. Manufacturers faced increasing challenges as oversupply and weak demand combined to depress market momentum.

In China, the construction sector, a vital end-use market for Calcium Carbide, remains sluggish, exacerbating downstream challenges. Cold weather conditions significantly curtailed construction activities in northern regions, leaving only a few major projects in progress. This seasonal slowdown further compounded the challenges faced by downstream industries reliant on Calcium Carbide, as demand for PVC and related materials declined.

The Chinese market’s oversupply situation intensified pricing pressures, with production rates remaining steady despite weak demand. Traders noted limited inquiries from downstream sectors, reflecting cautious buying patterns amidst broader economic concerns. Procurement in Calcium Carbide has largely shifted to spot transactions, driven by low inquiry activity and a lack of market enthusiasm. Additionally, the hanging order price has remained low, signaling ongoing market stagnation and limited trading activity.

The Indian construction sector faces a slowdown in H1 of FY24-25 due to weaker-than-expected activity in housing and infrastructure projects, leading to muted demand for materials like PVC. Further, sluggish post-election recovery and delays in infrastructure projects have tempered growth and impacting the Calcium Carbide market. As cautious buyer behavior persisted, transaction volumes remained subdued, with market participants anticipating no significant improvement in the near term.

In the USA, the Calcium Carbide market mirrored similar challenges, with prices under pressure from weak demand in downstream sectors like acetylene and PVC. High mortgage rates and construction disruptions contributed to a downturn in the housing market, further limiting Calcium Carbide usage. Manufacturers intensified destocking efforts, offering discounts to manage high inventory levels amid subdued procurement activity.

The German market has also been affected by similar trends, with the downstream acetylene and PVC sectors grappling with challenges stemming from the construction industry's prolonged slowdown. High interest rates, elevated material costs, and labor shortages have caused a significant contraction in building activities, directly impacting Calcium Carbide demand. Eurozone-wide construction output remains in decline, further exacerbating the negative outlook for downstream procurement.

As per ChemAnalyst, Calcium Carbide prices are expected to face downward pressure in the coming weeks. The urgency among manufacturers to clear inventories before year-end, coupled with persistent weak demand amid festival seasons, will likely weigh on prices.