Coal tar and deep-processing market maintained stable operation in November

The coal tar and deep-processing market remains stable in November In November, the overall market for coal tar and deep processing maintained a steady course, with a pronounced sense of caution among participants. The high-temperature coal tar segment exhibited resilience, though transaction volumes remained relatively low in key regions like Shandong and Inner Mongolia. Following Hebei Huafeng's recent tender for 2,000 tons of high-temperature coal tar at 2,800 yuan per ton, the local market sentiment stabilized, while inventory constraints in Shanxi led to a gradual reduction in listings and an upward adjustment in offers. Low stock levels continue to bolster coke price increases, despite sluggish downstream activity and challenges in sustaining high-priced coal resources. The industrial naphthalene market stayed firm without any noticeable change in its floor price. Rising costs of raw materials, particularly high-temperature coal tar, have provided some support to industrial naphthalene pricing. However, sales of water-reducing agents in the north have slowed, and concerns over regional trade dynamics in the south could further impact naphthalene inventories. In the near term, the industrial naphthalene market appears poised for consolidation rather than significant movement. The water-reducing agent market also saw steady operations, though demand in the northern terminal construction sector has dipped due to colder weather. This has resulted in reduced purchases of high-efficiency water-reducing agents, with only essential levels being maintained. While the southern region continues to receive shipments, the winding down of projects means demand for naphthalene-based superplasticizers is set to decline, casting doubt on future market prospects. Over the weekend, the coal-tar pitch market retained a cautious stance, with stable trading conditions. A 150-ton auction by Shanxi Coking Co. for coal asphalt started at 2,550 yuan per ton, while Baoshan Iron and Steel sold medium-temperature coal tar pitch at 2,450 yuan per ton and regular coal tar pitch at 2,650 yuan per ton. Recent hikes in raw material costs have spurred producers' inclination to raise prices. However, exports of coal-tar pitches have entered an off-season since September, influenced by global aluminum price fluctuations and weak carbon market demand. Sentiment remains elevated, yet the market is expected to see moderate upgrades in the coming weeks. Carbon black prices remain unchanged, with routine trading occurring within the market. Despite rising costs of high-temperature coal tar this month, carbon black manufacturers showed late-month intentions to hike prices. However, weaker sentiment and reluctance to alienate clients have kept carbon black prices stable. With the tire market entering its traditional off-season, it’s unlikely we’ll see a price increase for carbon black anytime soon.

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