From January to February 2024, the domestic calcium carbide market continued its weak trend as it did in 2023. In the context of continued flat downstream demand, the price of calcium carbide dropped to the bottom, leading to a sharp increase in shutdowns or load reductions, a serious decline in enterprise efficiency, and further exacerbation of industry losses.

In terms of production, the cumulative output in the first two months of 2024 grew by 1.7 percentage points year on year, with an operating rate of around 75% and an effective capacity utilization rate of 85% in the industry. The production increase is mainly attributed to the gradual commissioning of new facilities in 2023, which has increased their production capacity base.

Regarding prices, we take the price in Wuhai as an example. The average price there in January decreased by 22.8 percentage points compared with the same period last year, and the average price in February fell by 21.2 percentage points year on year and declined by 6.8 percentage points month on month.

As for feedstock prices, we take semi-coke as an example. The average price of semi-coke in Shaanxi dropped by 29.8% in January compared with the same period last year, and the average price decreased by 20.8% in February on a yearly basis and fell by 1.0% on a monthly basis. Besides, the limestone price is currently maintained at the level of early 2024 while the electricity price showed a year-on-year decrease, depending on different regions and enterprises.