The global COVID-19 pandemic has had a significant impact on commerce worldwide, prompting disruptions in various industries. The calcium carbide market is one that has been affected by the pandemic, with many players in the market experiencing a significant blow in operations since the outbreak began. Calcium carbide is utilized in several applications, including the production of acetylene gas for welding, cutting, and brazing applications in the steel industry.
Calcium carbide production requires carbon and lime. In its manufacture, calcium oxide (lime) is heated with carbon (coke) to high temperatures of 2,000C to produce calcium carbide. China is the leading producer of calcium carbide in the world, with over 70% of global production. India and the United States are also significant producers of the product.
The COVID-19 outbreak has affected the global calcium carbide market in several ways. The first impact is on the supply chain of the product. The outbreak caused disruptions in global trade, reducing the shipment of raw materials, from which calcium carbide is produced. China, where the majority of raw materials used in the manufacturing process of calcium carbide are sourced, was hit the hardest by the outbreak in the initial stages of the pandemic. This led to a significant decrease in production and exports of calcium carbide from China.
Another impact of the outbreak is the decline in demand for calcium carbide products. In the initial phase of the pandemic, many countries imposed lockdowns and restrictions to combat the spread of the virus, leading to a decrease in industrial activities, including the steel industry. This caused a decline in the demand for calcium carbide products, which is a crucial material in welding, cutting, and brazing applications in the steel sector. The decreased demand for calcium carbide products reduced the consumption of the product, which caused a slump in prices.
Furthermore, the COVID-19 outbreak caused the closure of several plants involved in the manufacture of calcium carbide. In its bid to control the spread of the virus, China, the leading producer of calcium carbide, shut down many factories processing the compound. This exacerbated the shortage of supply of calcium carbide, causing a further increase in price.
Despite the challenges posed by the outbreak, the calcium carbide market is expected to recover in the coming years. Gradual easing of restrictions by several countries has created more opportunities for the resumption of industrial activities, leading to an increase in the demand for calcium carbide products. The resumption of activities in the steel and construction industries, which are major consumers of calcium carbide products, will provide a substantial market for the product.
Moreover, the increasing demand for calcium carbide products in the pharmaceutical and agrochemical industries will create new opportunities for the market's growth. Calcium carbide is used to produce acetylene, which is utilized in the manufacturing of intermediates used in the production of pharmaceuticals and agrochemicals.
In conclusion, the COVID-19 outbreak has caused a significant impact on the calcium carbide market. The disruptions in the supply chain, the decrease in the demand for calcium carbide products, and the closure of production plants are the primary challenges affecting the market. The gradual easing of restrictions by several countries and the resumption of industrial activities are expected to foster market growth. However, the impact of the outbreak on the global economy and the steel industry's future remains uncertain, and the calcium carbide market must weather these uncertainties.