Hamburg, Germany: As the third quarter is advancing, the prices of Calcium Carbide have been declining across the regional markets, including Germany. Downstream demand for Calcium Carbide from the construction sector has decreased notably due to ongoing economic uncertainty and reduced industrial activity. In addition, persistent inflationary pressures have increased production costs, forcing manufacturers to lower their prices to maintain competitiveness. Weak economic conditions, characterized by high unemployment rates and reduced consumer spending, have further dampened the demand for Calcium Carbide as industries scale back their operations.

The ChemAnalyst database has shown that the price of Calcium Carbide has declined. Furthermore, The European Steel Association (Eurofer) has revised its earlier projection, now anticipating a 3% decrease in downstream steel demand within the European Union this year. This adjustment is attributed to ongoing high energy costs and lackluster demand, which have created a less optimistic outlook compared to May, when they initially predicted a 1% decline for 2023. The persistent uncertainty in the domestic market has led to this downward revision for the upstream raw materials, which includes Calcium Carbide. Inventories were maintained optimally, as reduced demand indicated a sales slowdown, consequently adding pressure on the supply side.

According to the World Steel Association, Steel Production in Germany increased to 3000 Thousand Tonnes in July from 2900 in June of 2023. On the other hand, The U.S. Commerce Department on Thursday said it will impose preliminary anti-dumping duties on downstream tin-plated steel imports from Canada, Germany, and China. Alternatively, the German Federal government has formally declared that the economy has undergone a recession for three straight quarters, lasting until the end of June. Given the grim economic outlook, investors have lowered their anticipations concerning the possibility of the European Central Bank implementing a tenth successive interest rate increase at its next meeting on September 14.

According to the pricing intelligence of ChemAnalyst, the prices of Calcium Carbide might remain bearish in the European marketsThe holiday season in Europe last month put a hold on construction activities, ensuring an ample supply of raw materials like Calcium Carbide for future projects. Sluggish demand and the impact of inflation are expected to persist, causing prices to stay low. Economic uncertainties and reduced industrial activity will likely continue to suppress demand for Calcium Carbide. To address these challenges, Manufacturers may need to adjust prices downward to stay competitive as production costs rise due to inflation.