[ferro-alloys.com] the pace of calcium carbide uptrend became slow down since the beginning of August. So far the goods supply was still tight, but the whole situation had gradually tended to be stable. According to the latest news, the rating operation had greatly improved in the northwest. And the transportation was impeded by the rainy days in the central north. While rising price was lacking of driving force in the downstream PVC enterprises. Most enterprises were cautions for the high quotation with the cost pressure.

 

The price kept the stable after rising. Until now the offer was RMB2950-3000/mt (USD483-491/mt, EX-WORK, VAT) in the northwest if China. There was also higher transaction in the market. Most enterpriser said that the sale situation was smooth and had no inventory in Inner Mongolia, Gansu and Ningxia etc. In Xingjiang, several main enterprises said that their goods were mostly used for their own pvc factories. Only small part was sold to the surrounding areas. In south region, there was no doubt that the supply was tight without local producers. A Hunan customer said they want to buy 30 tons, but it was difficult to looking for the goods sources.

 

The reporter learnt about that the reasons of supply tight could be included as following.  Firstly, the rating operation was close to the 100% in the downstream enterprises, so the purchase attitude was positive. Secondly, the rating operation was not stable because of the production equipment. Of course, the rainy weather also was an unfavorable factor for the transportation. Thirdly, the policies also made important influence for the industries. Such as, theInner Mongolia local government made the power rationing policy for the high power consumption enterprises. Lastly, the government published a series of restrictive measures for the high consumption industries, adding the weak market in the former period, many small and medium-sized enterprises was forced to cut production, even closed down.

 

After the price up in domestic, the export market was also presented the good prospect. In Hebei, a dealer said that there were more inquiries than former time and the firm transaction also much improved. The export quotation was USD640-660/mt FOB Tianjin port.

 

The downstream enterprises market was relatively stable and the supply gradually met the market demand, which formed an unfavorable factor for the calcium carbide price up. Considering the tight situation was not relieved in short time, so it was estimated that the calcium carbide would keep the stable situation after rising in recent time.