Price of calcium carbide in domestic market continued to surge in July, reaching RMB4 600/t on average in mid-July, an increase of 16.48% over the proceeding month. It may touch a higher on the support of energy, feedstock and transportation constraint. As for polyvinyl chloride manufacturers those use calcium carbide as raw materials, such a high calcium carbide price is hardly afforded while the price of polyvinyl chloride nearly remained unchanged in the first half. High cost forced these polyvinyl chloride manufacturers cut down their feedstock inventories and operation rates.
High inflation may be the main reason of short supply. Coal price rocketed, resulting in a power deficit, then the calcium carbide producers run well below the full capacity and some producers in northern regions started to repair their facilities. Prices of oil products and freight went up, along with the government controlling the delivery and production of dangerous chemicals, causing the supply deficit.
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