Houston (USA)- During the early weeks of July 2024, Calcium Carbide prices in the USA have continued their upward trajectory, fueled by several key factors. The price surge is primarily driven by increased raw material costs, high demand in the downstream PVC, and expanding export opportunities. These factors have collectively bolstered prices across the Calcium Carbide market, significantly impacting downstream sectors such as PVC, steelmaking, and various industrial applications.

US Calcium Carbide producers have increased operating rates following maintenance and unplanned outages. These measures have had minimal effect on global supplies, as domestic sales volumes also rise, tightening producers' inventories. US downstream PVC export prices have surged, propelled by tighter global supply and freight challenges that outpace rising domestic production. Chinese PVC producers have been reducing exports to Africa, India, and South Asia because high freight rates from Asia make their products less competitive than those from the US and Europe. As a ripple effect, the demand for Calcium Carbide in the US market witnessed a positive response proportionally impacting the price range.

Further, domestic demand for Calcium Carbide has been notably bolstered by a sharp increase in vehicle sales. In June 2024, US vehicle sales recorded a remarkable month-on-month rise, which, along with optimistic market sentiment, has led to heightened procurement activities across downstream sectors.

The surge in vehicle sales has also amplified the demand for PVC, a key material in automotive manufacturing, further driving the need for Calcium Carbide. This demand shift has enabled US producers to penetrate previously competitive markets at higher prices. Additionally, rising upstream crude oil prices, which rose 6% in June due to OPEC+ cuts and increased summer fuel demand, have escalated production costs for PVC. A 2.6% weekly decline in US commercial crude oil inventories, coupled with geopolitical tensions and the threat of severe weather from hurricanes, has caused container shipping rates to spike, affecting Calcium Carbide prices. The rerouting of shipments around the Red Sea has further contributed to rising freight charges. In June 2024, the USA's manufacturing sector exhibited robust growth, reflecting improved operational conditions with continued increases in new orders.

US Calcium Carbide prices remain resilient amid increasing PVC prices, reflecting strong domestic demand and strategic maneuvers by US exporters. Furthermore, rising feedstock coke prices, driven by escalating crude oil prices, have increased the production costs of Calcium Carbide. High natural gas prices have also supported Calcium Carbide prices, with US and European natural gas rebounding in mid-June after significant declines in Q1 2024.

According to ChemAnalyst, the upward momentum in Calcium Carbide prices indicates a positive market outlook, fueled by strong demand amidst the anticipated low inventory levels, which are expected to further impact pricing dynamics.