What is the story about?
What's Happening?
In September 2025, calcium carbide prices in Asia rose due to pre-holiday stocking and increased feedstock coke prices. Despite this, demand in the downstream PVC markets remained low, affected by ongoing supply constraints. In the U.S., strong desulfurization needs from the steel industry supported calcium carbide prices. The American Iron and Steel Institute reported a 5.9% increase in domestic raw steel output compared to the previous year, with a capacity utilization rate of 77.4%.
Why It's Important?
The rise in calcium carbide prices in Asia and the U.S. reflects broader trends in the global industrial and construction sectors. In the U.S., the steel industry's demand for calcium carbide highlights the sector's resilience and its role in supporting related industries. However, the ongoing slowdown in construction and weak global demand for PVC pose challenges. Rising material costs, including new copper tariffs, are pressuring margins and affecting procurement strategies, which could impact construction and manufacturing sectors.
What's Next?
In Asia, holiday-related shutdowns and labor shortages may restrict output, potentially driving up calcium carbide prices as restocking occurs for winter contracts. In the U.S., prices may decrease as downstream buyers adopt conservative inventory positions ahead of winter, amid a slowdown in the construction sector. Stakeholders will need to navigate these market dynamics carefully, balancing supply chain constraints with demand fluctuations.
Beyond the Headlines
The situation underscores the interconnectedness of global supply chains and the impact of geopolitical factors, such as tariffs, on industrial markets. The construction sector's slowdown highlights structural issues, such as surplus housing and rising costs, which could have long-term implications for economic growth and urban development. Additionally, the environmental impact of increased industrial activity remains a concern, prompting discussions on sustainable practices.
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