[ferro-alloys.com] According to the latest data shows, the mainstream price of calcium carbide Grade I (gas evolution≥280) was RMB3033.33/mt at the beginning of the year. While the price was RMB2761.67/mt in the late of June, which lowered 8.96% compared with the earlier period. Besides the spring festival period, the price of china calcium carbide down all the way until the end of June. The main reasons are the following

 

The firstly, thecalcium carbide capacity was far beyond the market demand. China calcium carbide production capacity has reached 35 million tons in 2012. And the annual output of 18.692 million tons up 9.3% from 2011. In the first quarter of 2013 the calcium carbide production was 5.26 million tons, which up 11.1% from a year earlier. Currently large project construction and expansion of calcium carbide production are gradually put into production. The proposed project through the government approval plan has production capacity of 15.13 million tons. The 800,000 tons of calcium carbide project Coal Chemical Industry Group in Shanxi, is expected to put into production by the end of this year. Expansion capacity of Pingluo, Ningxia would also recently was put into the market. It is expected that the calcium carbide production capacity will exceed 56 million tons/year in 2015 years later, so overcapacity is anxiety.

 

The secondly, it was necessary to lower the price of calcium carbide because of overcapacity and the downturn in the steel industry. Although the upstream coke industry took insurance policies, the china coking coal supply pressure was still large. The downstream PVC price was slightly high, but it was deviated from calcium carbide prices. Calcium carbide enterprises faced the embarrassing situation of normal shipment but prices falling. PVC market demand was also low and lacked of strong support, which would determine the lower calcium carbide industry situation in china.

 

The thirdly, Global economics growth and China's economic growth slowing could be as the main reason for the plight of calcium carbide industry at present.

 

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