Shanghai (China): During the initial weeks of June 2024, Calcium Carbide prices in the Asian market remained moderate, influenced by several factors. In India, Calcium Carbide prices increased due to high import prices from China and moderate domestic demand. The overall market price of Calcium Carbide was supported by steady procurement activities in downstream sectors such as PVC and other end-use industries. Indian traders showed enthusiasm to ramp up procurement before China’s Dragon Boat Festival holiday to meet demand.

Global events further impacted the market. Israel’s military operations in Gaza and attacks on commercial shipping in the Red Sea disrupted global oil supplies, leading to a surge in container shipping rates. This increase, driven by limited container availability, rerouting around the Red Sea, and robust global demand, caused significant delays in ship arrivals. These disruptions impacted downstream operations and inventory levels, contributing to PVC price increases in Asia. Moderate inquiries from downstream PVC industries in China also supported demand, keeping the Calcium Carbide market relatively stable.

According to China Customs data, China's exports in May 2024 grew at their fastest pace in over a year, jumping 7.6% from the previous year to USD 302.35 billion. This robust export growth supported healthy Calcium Carbide prices. In China's domestic market, demand for Calcium Carbide improved, primarily driven by a strong recovery in the housing sector. New home prices in China have risen for the ninth consecutive month in May 2024, marking a steady uptick attributed to various government measures aimed at stabilizing the property market, including easing mortgage rules and injecting additional funding. The resurgence in construction activity led to moderate demand growth in downstream sectors like PVC, further fueling Calcium Carbide demand and keeping prices stable.

In May 2024, India's manufacturing sector grew at a slower pace due to a severe heatwave and rising costs. Despite this, strong demand and effective marketing sustained a gradual increase in new orders over the past three months. Support from the feedstock coke remained moderate due to positive market transactions, which upheld Calcium Carbide prices. Additionally, increasing port congestion in crucial Asian hubs, primarily due to seasonal spikes in cargo volumes and geopolitical disruptions, impacted prices. The tight housing market, driven by consistent demand and limited property supply, boosted the need for construction materials such as PVC, leading to increased Calcium Carbide demand in downstream industries. Heightened procurement due to rising demand caused supply shortages, reflecting positive market sentiment and high residential property demand.

According to ChemAnalyst, the price of Calcium Carbide is expected to incline due to sustained demand for Calcium Carbide as a key additive in the PVC industry. Positive indicators in the global economy and continued industrial expansion suggest strong demand. Additionally, the manufacturing sector is anticipated to continue improving, albeit at a slower pace, as demand and trading activities pick up.