Shanghai (China): In Q1 2024, the Acetylene market demonstrated resilience as prices remained stable across the Indian domestic market. This steadfastness extended to exporting nations like China, where a downturn in construction activity during February tempered demand within the construction sectors. Despite the subdued market conditions in China, Indian buyers adeptly navigated negotiations to uphold price stability for Acetylene. Moreover, while there was a slight uptick in feedstock calcium carbide prices, the concurrent decline in coal prices helped maintain production costs for Acetylene, thereby contributing to its overall price stability.

The consistent demand for Acetylene within India's downstream cutting, welding, and Metal Fabrication sectors, fueled by increased construction and automobile activities, played a pivotal role in maintaining price stability for Acetylene. Acetylene, renowned for its versatility and effectiveness in welding and cutting metal components, remains an indispensable resource in construction projects across India. As India's manufacturing sector continues its robust growth trajectory, buoyed by resilient global demand and subdued inflationary pressures, the demand for Acetylene remains steady. The ongoing construction boom, fueled by substantial government investments and streamlined regulations, further fosters heightened demand for Acetylene within the Indian market.

With Budget 2023 allocating nearly Rs. 10 trillion for infrastructure and real estate projects, downstream industries such as cutting, welding, and Metal Fabrication experienced a surge in demand for Acetylene. The real estate market in Mumbai witnessed remarkable growth in February 2024, with property registrations soaring by 21 percent compared to February 2023 and a notable 7 percent increase from January 2024. Additionally, monthly sales data from companies indicated a consistent uptick in Indian automakers' sales during February, driven by heightened demand for two-wheelers and utility vehicles, further bolstering the need for Acetylene in manufacturing processes. Furthermore, India's manufacturing and trading activities continued to signal sustained growth, underscoring enduring demand across diverse industrial sectors. The active manufacturing activities in February indicate high trading activities and improved demand for Acetylene, with the assessed price reaching INR 325,000/MT in February 2024.

According to ChemAnalyst, the prices of Acetylene are expected to increase in both exporting nations and the domestic market of India as demand improves in China, supported by China government initiatives in the construction sector that lead to high procurement activity in the market coupled with increase in procurements in early Q2 2024. Furthermore, it is anticipated that crude oil prices will rise following the OPEC+ production cut in the 2nd quarter of 2024, leading to a continued increase in the production cost of Acetylene.