The calcium carbide market is oversupplied and the industrial supply structure needs to be optimized.

Calcium carbide, also known as calcium carbide, is the basic raw material for the production of acetylene gas, polyvinyl chloride, lime nitrogen, dicyandiamide, steel desulfurizer and other products. The appearance of calcium carbide is a gray-black lump with a purple or gray cross-section. As a basic chemical raw material, calcium carbide has a wide range of applications, involving industry, agriculture, medicine, steel, construction and other fields.

After years of development and accumulation, at this stage, my country has become the world’s largest producer of calcium carbide. According to the “2022 Calcium Carbide Industry Investment Prospects Forecast and Investment Strategy Suggestions Report released by the Industrial Research Center, my country’s calcium carbide market is oversupplied. In 2021, the output of my country’s calcium carbide industry will reach more than 28.2 million tons. The calcium carbide industry is a high-energy-consuming, high-pollution industry. In order to optimize the supply structure, save energy and reduce emissions, backward calcium carbide production capacity is accelerating its withdrawal from the market, and the concentration of the calcium carbide market will increase.

In 2021, the production capacity of my country’s calcium carbide industry will reach more than 41 million tons. From the perspective of production capacity distribution, calcium carbide production capacity is highly regional, mainly distributed in areas with sufficient supply of coal, lime, electricity, etc., such as Inner Mongolia, Xinjiang, Ningxia and other regions. The production process of calcium carbide is divided into oxythermal method and electric heating method. The electric heating method is widely used, that is, using quicklime, coke, anthracite or petroleum coke as raw materials, and relying on high-temperature arc melting reaction in a calcium carbide furnace.

There are a large number of calcium carbide companies in my country, reaching more than 110 in 2021, including Xinjiang Zhongtai Mining, Xinjiang Tianye Co., Ltd., China Salt Jilantai, Xinjiang Zhongtai Chemical, Hongda Xingye Co., Ltd., Yili Energy, Shuangxin Energy, etc. Enterprises, due to oversupply in the market, the operating rate of calcium carbide enterprises is low. Xinjiang Tianye Co., Ltd. is one of the major domestic calcium carbide manufacturers, and its calcium carbide production capacity utilization rate is at a high level. In 2021, Xinjiang Tianye Co., Ltd.’s calcium carbide industry output will exceed 1.37 million tons, a year-on-year increase of 5.7%, and the gross profit margin of related products is close to 29.0%.

Polyvinyl chloride (PVC) is the most important downstream product of calcium carbide, and its consumption accounts for about 80% of the total calcium carbide production. my country is the world’s largest producer and consumer of polyvinyl chloride. From 2016 to 2021, thanks to real estate, automobiles, etc. With industrial development, my country’s polyvinyl chloride consumption continues to grow, with an average annual compound growth rate of more than 4.2%. At present, my country still has new PVC production capacity, and the new production capacity will reach 3 million tons in 2021-2022. As the new PVC production capacity comes into operation, the calcium carbide market demand will be further released.

Industry analysts said that my country’s calcium carbide market is currently oversupplied and the industrial supply structure is unreasonable. However, with the withdrawal of backward production capacity from the market and environmental protection supervision, With the increasingly stringent regulations, the calcium carbide supply structure will continue to improve. Polyvinyl chloride is currently the main application scenario of calcium carbide, but with the development of the market, the application scenarios of calcium carbide are becoming increasingly abundant, and the release of demand in emerging application scenarios is expected to become an important force driving the growth of the calcium carbide market.