Price trend

From January to February 2024, the domestic calcium carbide market continued its weak trend before the year, with overall poor terminal demand. Production was mainly maintained for the purchase of raw materials, and the price of calcium carbide had bottomed out. Enterprise losses increased, and in order to reduce inventory pressure, factory shutdowns or load reductions increased.

Analysis review

The cumulative production from January to February increased by 1.7% compared to the same period last year, and the operating rate remained at around 70-80%. The main reason for the increase in production was the gradual production of new facilities in 2023, which increased their production capacity base.

In terms of market prices, there was a significant decline in the market in January, and it remained stable from February to March. Taking the Wuhai region as an example, the average price in February reached 2,714.3 RMB/ton, a decrease of 21.2% compared to the same period last year and a decrease of 6.8% month on month.

Market outlook

The sustained downturn in the calcium carbide market was mainly affected by downstream product demand. As of March 12th, the price of calcium carbide was operating at a low level, and enterprises were reducing their load and demand was slowly recovering. The inventory pressure on factories was decreasing, and some enterprises were increasing their operating rates. The supply pressure on calcium carbide was still significant, and the downstream operating situation was not optimistic. In the short term, calcium carbide still maintains a range adjustment operation.

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