For the Quarter Ending December 2024
North America
Throughout Q4 2024, the acetylene market in North America exhibited mixed trends, with prices slightly increasing in October before declining in November and December. In the USA, October's price rise was driven by improved demand from downstream PVC and acetylene applications. This demand uptick aligned with steady supply levels of feedstock calcium carbide, which offered sufficient cost support for acetylene production.
However, by November, the market faced a downturn as subdued housing starts, high mortgage rates, and reduced export opportunities dampened demand for acetylene. Industrial activity in the acetylene sector remained sluggish, leading to limited procurement and slower trading volumes.
In December, prices continued their decline, reflecting weak demand from PVC and acetylene applications and rising energy costs during the winter season, which added to production challenges. Manufacturers adopted aggressive destocking strategies to manage high inventory levels, further underscoring bearish market sentiment. The quarter closed with ongoing supply-demand imbalances and subdued downstream activity, highlighting the need for a rebound in construction and industrial applications to restore market stability.
APAC
In Q4 2024, the APAC acetylene market exhibited a downward trend, driven by weak downstream demand and abundant supply. In October, prices declined marginally as improved supply conditions alleviated earlier market tightness. Inventory levels remained sufficient, while feedstock calcium carbide prices provided minimal cost support. Demand from downstream sectors such as PVC and welding remained moderate, with post-monsoon construction activities in India failing to meet expectations. The Indian construction sector faced delays in infrastructure projects and cautious spending, which hindered demand recovery. November saw a steeper decline in acetylene prices as oversupply intensified and demand from the PVC, welding, and cutting sectors weakened further. Manufacturers turned to aggressive destocking strategies, offering discounts to manage excess inventory and stabilize cash flow. Subdued construction activities across the region and bearish market sentiment kept procurement restricted to essential requirements. Feedstock calcium carbide prices remained under pressure, exacerbating the market's challenges. By December, acetylene prices continued their decline, pressured by weak demand from the construction and industrial sectors, compounded by festival-related factory closures and cold weather. Seasonal slowdowns in construction and reduced activity in welding applications further constrained demand.
Europe
Throughout Q4 2024, the acetylene market in Europe exhibited varying trends, with prices increasing in October but declining through November and stabilizing in December. In Germany, the market experienced significant price changes, driven initially by improved demand from downstream PVC and chemical industries in October. The price rise was supported by stable feedstock calcium carbide costs and steady supply levels, as producers capitalized on increased trading volumes to recover margins. However, in November, the market faced a downturn as weak demand from PVC manufacturers and the struggling construction sector, coupled with rising inventories, applied downward pressure on prices. Subdued procurement activity and bearish market sentiment further exacerbated the decline. By December, prices stabilized amid ample supply and cautious buying behavior, as downstream industries contended with seasonal slowdowns and ongoing economic pressures. Elevated construction costs and high interest rates continued to suppress activity in the Eurozone’s construction sector, limiting demand for acetylene. The market ended the quarter reflecting challenges with oversupply and tepid downstream consumption, highlighting the need for a recovery in industrial and construction activities to balance market dynamics.
For the Quarter Ending September 2024
North America
In Q3 2024, Acetylene prices in North America continued their upward trajectory, driven by strong demand from downstream industries such as PVC. The USA saw a notable price increase compared to the Q3 2023, highlighting the robustness of the market. Prices rose by approximately 7% from the previous quarter, largely due to higher feedstock calcium carbide costs and heightened export activity.
Market resilience was evident as disruptions from hurricanes and strikes affected the U.S. industrial base, further supporting price stability. Limited export availability and expectations of future price hikes, fueled by strong domestic demand, contributed to the bullish sentiment. Additionally, rising freight rates and vessel shortages reduced the competitiveness of Asian PVC, enhancing U.S. export appeal in key markets.
By the end of the quarter, acetylene prices in the U.S. remained significantly elevated, reinforcing the overall positive pricing environment. The combination of external supply chain challenges and strategic export moves underscored the continued strength of the North American acetylene market.
APAC
In Q3 2024, the Acetylene market across the APAC region witnessed a notable price uptrend, fueled by a combination of factors. Robust demand from key sectors such as automotive, steel manufacturing, and other end-use industries significantly contributed to the rise in prices. Supply disruptions, including plant shutdowns, further tightened market availability, amplifying the upward price momentum. Additionally, rising ocean freight costs and geopolitical uncertainties exerted further pressure, pushing prices even higher. India experienced the sharpest price movements in the region, with consistent price increases throughout the quarter. The strong demand-supply imbalance led to a 7% rise in prices compared to the previous quarter and a 6.6% increase year-on-year. A 3% variation was observed between the first and second halves of the quarter, reflecting persistent market activity. Overall, moderate demand and sufficient inventories prompted manufacturers to maintain low operating rates, avoiding any drastic price escalations. The quarter-ending price for Dissolved Acetylene Gas Ex-Kolkata stood at USD 4228/MT, showcasing the prevailing bullish sentiment in the Indian market.
Europe
In Q3 2024, the European Acetylene market maintained stable pricing, continuing the positive trend from previous quarters. Germany witnessed the most significant fluctuations, driven by stable market conditions. Pricing was largely influenced by factors such as consistent feedstock calcium carbide costs, steady demand from key sectors like PVC, and elevated natural gas prices that raised production costs. The market recorded a 12% price increase compared to Q3 2023, with a slight rise from Q2 2024, signaling a sustained positive trend. Price variation between the first and second halves of the quarter was minimal, reflecting steady pricing throughout the period. Strong export demand played a key role in maintaining healthy price levels, further bolstering market sentiment in the European market. With market demand and supply dynamics well-balanced, pricing stability was achieved, highlighting the resilience of the European Acetylene market. The overall sentiment remained positive as consistent conditions supported the pricing environment, demonstrating the sustained equilibrium in the market during this quarter.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American acetylene market experienced a significant uptick in pricing, driven primarily by robust demand from downstream sectors and logistical challenges. The market remained bullish, propelled by increased procurement activities in industries such as PVC, metal fabrication, and other end-use industries. The steady rise in acetylene prices was further supported by strengthened cost support from feedstock calcium carbide and heightened export activities.
In the USA, the trajectory of acetylene prices was particularly pronounced. The market saw an upward trend, with prices increasing compared to the same quarter last year, reflecting a strong recovery and escalating demand. This surge was further compounded by a rise from the previous quarter, underscoring consistent market momentum.
The first half of the quarter recorded notable price gains, which continued into the second half, indicative of sustained procurement activities and supply chain adjustments in response to geopolitical tensions and rising freight rates. This steady incline in prices highlights a positive pricing environment, driven by strong domestic demand and strategic market positioning by American exporters.
APAC
In Q2 2024, the Acetylene market in the APAC region experienced a pronounced upward trend, driven by several critical factors. The quarter was marked by heightened demand across various sectors, including PVC and metal fabrication, as industrial activities ramped up post-pandemic. This demand was further fueled by regional economic recoveries, leading to increased procurement activities. Upstream influences played a significant role, with rising crude oil prices and disruptions in raw material supply chains, such as calcium carbide, contributing to higher production costs. Additionally, geopolitical tensions in the Middle East, along with increased container shipping rates due to rerouting around the Red Sea, exacerbated supply constraints, thereby supporting price hikes.
Focusing on India, the country witnessed the most substantial price fluctuations within the region. This can be attributed to a surge in construction activities and strong performance in the downstream PVC sector. Compared to the previous quarter, prices saw a notable increment of 1%, reflecting a consistent upward trend throughout Q2. When comparing the first and second halves of the quarter, prices rose by an additional 2%, underscoring the persistent positive sentiment in the market. The pricing environment throughout Q2 2024 has been unequivocally positive, characterized by robust demand, constrained supplies, and substantial upward price pressures.
Europe
In Q2 2024, the acetylene market in Europe experienced a bullish trend driven by several significant factors. Robust demand from downstream industries such as PVC and metal fabrication catalyzed upward momentum in acetylene prices. This surge was further compounded by supply constraints due to the shutdown of a major PVC plant in Mexico and logistical challenges in Asia, which reduced the competitiveness of Asian PVC exports. Rising freight rates and vessel shortages also contributed to market tightening. Additionally, the steady rise in acetylene prices was supported by strengthened cost support from feedstock calcium carbide and heightened export activities.
Germany, in particular, saw the most pronounced price fluctuations within the region. Reflecting an overall positive pricing environment, the country's acetylene market experienced a significant increase compared to the previous quarter in 2024. This indicates strong market dynamics and consistent demand in key sectors despite external challenges. The sustained positive sentiment results from tight supply conditions, elevated freight rates, and resilient downstream demand, painting a bullish outlook for the acetylene market in the near term.
For the Quarter Ending March 2024
North America
During Q1 2024, the pricing dynamics of US Acetylene derived from Calcium Carbide showcased a mixed trend in the North American region. Prices experienced an initial uptick in January and February, buoyed by heightened demand from downstream industries like PVC and steel, particularly in construction.
The construction surge, bolstered by governmental investments and regulatory streamlining, drove the need for Calcium Carbide. Supply constraints and escalating coke prices, a key feedstock, compounded production expenses, further elevating prices.
However, in March 2024, prices dipped due to weaknesses in US construction spending, as per Commerce Department data. Consequently, the quarter closed with a price of USD 3200/MT, FOB USGC, reflecting the varied pricing landscape witnessed during the quarter.
APAC
In Q1 2024, the pricing environment for Acetylene in the APAC region was characterized by various factors that influenced market prices. One significant factor was the decrease in crude oil prices, which led to a reduction in production costs. However, the prices of feedstock calcium carbide increased during this period, offsetting some of the cost savings. Additionally, weak demand from downstream industries, particularly in the automobile sector, contributed to the overall decline in Acetylene prices.
Looking at the overall trends and seasonality, the prices of Acetylene in the APAC region during Q1 2024 exhibited a downward trajectory. This was in contrast to the same quarter last year, when prices were higher. However, there was a slight increase in prices compared to the previous quarter in 2024.
In conclusion, the pricing environment for Acetylene in the APAC region, particularly in India, was negative during Q1 2024. The decrease in demand from the automobile sector and the increase in feedstock prices contributed to the overall decline in prices. The latest quarter-ending price for Dissolved Acetylene Gas Ex-Kolkata in India was USD 3837/MT.
Europe
In Q1 2024, Europe's Acetylene market, derived from Calcium Carbide, depicted a mixed sentiment, characterized by both positive and negative trends. Germany, in particular, witnessed significant price fluctuations during this period. The surge in demand from the steel and pharmaceutical sectors propelled price increments in January and February. Increased steel sales in Germany intensified competition for crucial raw materials like Calcium Carbide. Supply chain disruptions, including strikes by train drivers and shipping delays, further exacerbated the scarcity, augmenting prices. Moreover, global disruptions like those in the Red Sea and Panama Canal amplified freight costs and logistical complexities, impacting the European market. However, March saw price downturns due to oversupply and subdued procurement activity, linked to a slowdown in construction in Germany. Closing the quarter, Calcium Carbide in Germany settled at USD 3385/MT, FD Hamburg, encapsulating the varied pricing dynamics witnessed throughout the quarter.
