Global Calcium Carbide Prices Remain Under Pressure Amid Weak Demand and Ample Supply
- 03-Feb-2025 5:10 PM
- Journalist: Marcel Proust
Calcium Carbide prices remained under pressure globally in January 2025 due to subdued demand across key downstream industries, including PVC and acetylene production. Weak cost support from feedstock coke and high operating rates among manufacturers contributed to oversupply concerns. Additionally, seasonal slowdowns, including the Lunar New Year holiday in APAC and winter-related disruptions in Europe and North America, further restrained procurement activity, keeping market sentiment bearish.
In China, Calcium Carbide prices remained under pressure due to high production rates and weak PVC sector demand, leading to oversupply. Limited cost support from feedstock coke and rising inventories worsened market conditions. As the Lunar New Year approaches, downstream procurement slowed, with most buyers purchasing only as needed. The construction sector, a major PVC consumer, saw weak demand amid cold weather and project delays. Export activity also remained sluggish, with soft overseas demand and increased competition from suppliers limiting price movement. Manufacturers attempted inventory control, but the market imbalance persisted, keeping sentiment bearish and prices subdued.
In India, Calcium Carbide prices remained stable but under pressure due to weak demand from PVC and acetylene industries. While premium residential construction saw some growth, overall market activity was sluggish, with a 22% YoY drop in new projects. High production rates led to inventory buildup, while cold weather further constrained consumption.
In Germany, Calcium Carbide prices faced downward pressure as demand from acetylene production remained muted. The European construction sector continued to contract, limiting consumption of Calcium Carbide-based materials. Rising feedstock costs and high energy prices weighed on production economics, but weak downstream demand prevented any price increases. Additionally, competitive low-cost imports from APAC added further pressure on the Calcium Carbide market, forcing domestic manufacturers to maintain restrained pricing strategies.
In the United States, Calcium Carbide prices remained stable but under pressure due to weak demand from acetylene and PVC production. Severe winter conditions delayed construction projects, reducing the need for Calcium Carbide-derived materials. U.S. Census data indicated flat construction spending, with private sector gains offset by a decline in public infrastructure investment. Competitive import pricing from APAC markets further dampened domestic price movements, while cautious procurement strategies among buyers limited bulk purchases.
As per ChemAnalyst, Calcium Carbide prices are expected to remain under pressure in the coming weeks. The Lunar New Year holidays in APAC will likely pause procurement activity, while ample supply and weak demand in Europe and North America are expected to sustain a bearish outlook. A recovery in prices will depend on post-holiday demand trends and potential improvements in construction and industrial activity.