Price trend

Calcium carbide prices continued to rise in September, rising from 2,393 RMB/ton at the beginning of the month to 2,608 RMB/ton by the end of the month, an 8.97% increase, according to data from SunSirs. In July and August, due to the concentrated maintenance of downstream calcium carbide manufacturers, market demand was sluggish, and calcium carbide prices continued to fluctuate downward, gradually accumulating losses for manufacturers. Demand improved in September, and prices continued to rise. Later, affected by supply and demand imbalances, prices continued to consolidate at a high level, with little upward momentum.

Analysis review

From the supply side, multiple factors led to a significant reduction in the supply side. First, the continuous losses in the early stage had put pressure on the operations of some calcium carbide production companies, resulting in phased production suspension; second, some power plants in the northwest region had started annual maintenance in preparation for "summer and winter", and the number of maintenance of their supporting calcium carbide plants increased. At the same time, some calcium carbide furnaces carried out planned maintenance, further exacerbating the supply tension.

On the demand side, the frequency of concentrated maintenance at downstream companies decreased, and the recent improvement in the overall profitability of the chlor-alkali industry has boosted the enthusiasm of chlor-alkali companies to resume production. With the National Day holiday approaching, downstream companies were actively stocking up in advance to cope with the logistics disruptions caused by the restrictions on hazardous goods vehicles on highways during the holiday. This further amplified the temporary supply shortage and provided strong support for the upward trend of calcium carbide prices.

Future outlook:

Calcium carbide production is expected to continue to strengthen in October. Prices are driving a significant increase in companies' enthusiasm for resuming production. Calcium carbide prices continued to rise in September, turning production companies from losses into profits, stimulating companies to resume production in October. The start of concentrated maintenance at downstream companies in mid-October, coupled with the expansion of calcium carbide export sales, will have a significant impact on the market, potentially pushing calcium carbide prices into a downward trend. However, the recent rise in raw material semi-coke prices has provided some cost support for calcium carbide, and the downward trend in calcium carbide prices is expected to be limited, with overall room for decline.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.