From January to February 2024, the domestic calcium carbide market continued its weak trend before the year, with overall poor terminal demand. Production was mainly maintained for the purchase of raw materials, and the price of calcium carbide had bottomed out. Enterprise losses increased, and in order to reduce inventory pressure, factory shutdowns or load reductions increased.

The cumulative production from January to February increased by 1.7% compared to the same period last year, and the operating rate remained at around 70-80%. The main reason for the increase in production was the gradual production of new facilities in 2023, which increased their production capacity base.

In terms of market prices, there was a significant decline in the market in January, and it remained stable from February to March. Taking the Wuhai region as an example, the average price in February reached 2714.3 yuan/ton, a decrease of 21.2% compared to the same period last year and a decrease of 6.8% month on month.

The sustained downturn in the calcium carbide market is mainly affected by downstream product demand. Currently, the price of calcium carbide is operating at a low level, and enterprises are reducing their burden and demand is slowly recovering. The inventory pressure on factories is decreasing, and some enterprises are increasing their operating rates. The supply pressure on calcium carbide is still significant, and the downstream operating situation is not optimistic. In the short term, calcium carbide still maintains a range adjustment operation.