Qingdao (China): Throughout March 2024, the Calcium Carbide market mirrored China's downturn, mainly due to sluggish demand in downstream industries like PVC, steel, welding, and others, stemming from a construction slowdown in China. Additionally, the enduringly low prices of feedstock coke and coal have contributed to reducing the production costs of Calcium Carbide amid a slow economic resurgence.

The pricing of Calcium Carbide in the domestic market persisted in its weakness, indicative of an overall dearth of demand from end-users. Enterprises grappled with mounting losses, prompting some to enact shutdowns or curtail production to alleviate inventory pressures. Despite efforts to mitigate these challenges, demand from downstream industries like PVC and steel remained subdued, largely due to the slowdown in the construction sector post the Lunar New Year.

China's property market has encountered successive hurdles since 2021, beginning with a regulatory crackdown on developers' high leverage, which precipitated a liquidity crisis. Official data unveiled that China's new home prices sustained their decline for the eighth consecutive month in February 2024, influenced by seasonal factors and disruptions linked to the Lunar New Year holiday period. Manufacturers continued to contend with a dearth of demand, further exacerbated by local governments grappling with substantial debt burdens. As of March 2024, the assessed price for Calcium Carbide stood at USD 391/MT FOB Qingdao, reflecting a 4.8% decline compared to the previous month.

Additionally, the enduringly low prices of feedstock coke and coal have played a significant role in driving down production costs amid a sluggish economic recovery. Throughout March 2024, China's coal and coke production experienced a decline due to weak steel demand, further exacerbated by the extended downturn in the real estate market, which diminished demand for these raw materials from steel mills.

As a result, coke producers found themselves with high levels of raw material inventories amidst declining demand for their products. The reduced activity in the construction sector translated into fewer inquiries for Calcium Carbide from downstream industries. Despite intensified regulatory efforts aimed at revitalizing the beleaguered property market, the decline in demand persisted. Downstream sectors continued to grapple with sluggish growth in construction activities, intensifying losses for businesses and necessitating adjustments in production to alleviate the strain of excess inventory. Indian buyers adopted a cautious approach, anticipating further declines in Calcium Carbide prices, which traders believed could revive their purchasing interest. Additionally, Calcium Carbide prices witnessed a downturn in the Middle East, attributed to factors such as the Ramadan lull and low import prices from China, exacerbating the downward trend.

ChemAnalyst anticipates an increase in Calcium Carbide prices over the next few months, driven by anticipated improvements in demand from both domestic and international markets. This projection is bolstered by the Chinese government's efforts to support the construction sector, suggesting a positive outlook for Calcium Carbide prices in the foreseeable future. The expected rise in Calcium Carbide prices reflects growing demand for the compound in various industries, including construction, steel manufacturing, and chemical production.