Hamburg, Germany: In the European market, the economic uncertainties fueled by rising interest rates to combat the high inflation and a decline in purchasing activities have weighed on the market sentiments of several bulk chemicals, including Calcium Carbide. The lower feedstock prices and cheap imports from manufacturing nations largely subdued the Calcium Carbide market momentum. As per the market sources, one of the market giants, Tata Conglomerate, has stated that Tata Steel Europe's earnings, which include the UK division, decreased by more than 60% in the year ending March 31, 2023, supporting the downshift observed in the price realizations of Calcium Carbide.

Despite the drop in production costs, a high level of spot material availability has also been a crucial factor in the weakening of the profit margins of Calcium Carbide manufacturing firms. Last Friday, the European TTF benchmark fell to its lowest price ever, €35.20/MWH, a level last reached in July 2021, shortly before Russia invaded Ukraine. The decline has strengthened the idea that energy costs are returning to normal after Europe effectively utilized alternative gas supplies, accelerated the adoption of renewable energy, and profited from a mild winter that left gas storage builds overflowing for the season.

Furthermore, in one of the major manufacturing countries of Calcium Carbide, China, the price of Calcium Carbide remained unchanged in the week ending May 05, 2023, as the recent labor day holiday has mounted the already weak market challenges. Despite unscheduled interruptions in production, domestic demand from the downstream Polyvinyl Chloride (PVC) industries and the construction sector remained weak, and export activity endured stagnancy. As a result, suppliers were forced to reduce their Calcium Carbide prices to safeguard the inventory balance.

According to the pricing intelligence of ChemAnalyst, the pricing dynamics of Calcium Carbide are likely to operate under pressure amidst the sluggish downstream demand across the regional markets. The minimal restocking from the spot market is anticipated to be continued in the forthcoming weeks as buyers sustain the wait-and-see approach. In addition, the potential impact of an economic downturn in Europe, given factors such as higher inflation and interest rates, will also not vanish soon in the near term.