Calcium Carbide Prices Continue to Slide Cost Pressure

During the Spring Festival, dangerous vehicles were banned from highways, which led to pressure on inventories of some enterprises under transportation pressure. Recently, large-scale rain and snow weather again appeared in northwest China, while Ningxia recently strengthened the inspection of Pula crisis, strengthened the inspection of road transportation, and increased the resistance of shipment.

During the Spring Festival, the cost support of calcium carbide production enterprises is still strong. The mainstream ex-factory price in Wuhai area is maintained at 4050 CNY/ton trade price, and it is cautious to wait and see. During the Spring Festival, calcium carbide starts to operate at a high level and the supply is sufficient.

However, the downstream PVC production enterprises that are engaged in external production of calcium carbide still start unstable, with reduced demand, and the downstream gradually form high trucks to be unloaded, and the price of calcium carbide also declines. Up to now, the mainstream factory price in Wuhai area is 3950 CNY/ton.

The high level of waiting to be unloaded leads to a rapid decline in downstream pick-up prices. After the Spring Festival, north China, northwest China, central China and other regions have frequent rain and snow weather, road transport is blocked, the market gradually presents an obvious regional shortage of goods.

In particular, the quantity of goods in Henan continues to be tight. Recently, with the decline of calcium carbide price and the rise of PVC futures after the Spring Festival, the profits of PVC manufacturers are gradually considerable, the starting load is gradually increasing, and the demand for calcium carbide is gradually increasing. The market inventory accumulated in the early stage enters the market consumption stage.

It is expected that calcium carbide prices will hit bottom at the end of February, and the cost side will give some support. At present, some enterprises have suffered losses and reduced load or stopped furnace. Some supporting enterprises are mainly used to supply downstream supporting load. And downstream PVC has been increasing the load, the demand for calcium carbide also increased. BDO's Black Cat, Shaanxi Hua, Kaixiang and other devices are expected to restart, and the market operation rate will increase and demand will increase. With the warm weather, rain and snow weather or will gradually reduce, and with the gradual consumption of unloading vehicles, logistics cycle speed up, transport pressure reduction.