Coal tar pitch market analysis in June

Coal tar pitch market analysis in June 

According to the data monitoring, in June, the average profit level of coal tar deep processing industry was 77 yuan/ton, up 37 yuan/ton compared with the theoretical profit last month. In June, the average price of raw material high-temperature coal tar was lower than that of last month. Supplying graphite electrode (coal tar pitch as binder), physical and chemical indexes meet international standards. The first half of the month was mainly a downward trend, the deep processing industry profits improved. However, in the second half of the month, with the decline of supply side, the market began to rebound and deep processing products coal tar pitch trend was downward. Overall, the coal tar deep processing industry turned from profit to loss, and the losses intensified. 

Device: 

According to statistics, in June 2022, the average operating rate of domestic coal tar deep processing enterprises was about 55%, an increase of 2% over the previous month. With the rise of raw material prices, deep processing and carbon black enterprises' losses have intensified, and production enthusiasm has declined. According to statistics, at present, the domestic coal tar deep processing capacity is 13.3 million tons, including 5.93 million tons in North China (accounting for 45%), 2.63 million tons in East China (accounting for 20%), 1.22 million tons in Central China (accounting for 9%), 1.81 million tons in Northwest China (accounting for 14%), 0.86 million tons in Southwest China (accounting for 6%), 0.42 million tons in Northeast China (accounting for 3%), and 0.44 million tons in South China (accounting for 3%).   

Raw materials: 

In June, high-temperature coal tar market fell slightly before rising. At the beginning of the month, due to the weakness of deep processing and carbon black, the manufacturers' profits were low, so the production enthusiasm was not high. They mainly purchase coal tar oil on the demand, and they are resistant to the high price of coal tar. However, in the first ten days of June, the sharp rise in Shanxi industrial naphthalene auction  boosted the overall deep-processing market, which led to coke enterprises unwilling to sell, and intend to strengthen the price of coal tar. The auction of Shanxi surrounding areas high-temperature coal tar was the first to rise, but the terminal demand was restrained, the price of industrial naphthalene fell from a high level, and the overall deep-processing industry was weak due to low demand. However, due to the sharp fall of coal tar last month, the deep-processing profits improved, therefore, the atmosphere of buying coal tar in the market improved. In the middle of June, Shanxi auction continued to rise sharply, and both domestic trading volume and market focus increased. Although the profits of downstream deep processing have decreased, the enthusiasm for receiving coal tar is still high. Therefore, in the late of this month, under the decline of coke and the slight production restriction of some coke enterprises, the continued rise of deep processing and carbon black enterprises to coke enterprises is still acceptable. At the end of the month, the early low prices in East China and other regions rose sharply, but the prices in Shanxi were relatively high, so the rise was limited. As of press time, the mainstream transaction in Shandong market was 5410 yuan/ton, that in Shanxi market was 5350-5430 yuan/ton, that in Henan market was 5400 yuan/ton, that in Heilongjiang market was 4900 yuan/ton, and that in Wuhai region was 5100 yuan/ton. As of press time, Hebei has not made a new price. It is believed that with the rise of coal tar, the downstream profits have decreased significantly, so the resistance to coal tar has increased. While coke enterprises still operate with a small amount of limited production despite losses, and in the short term, the operating rate is difficult to improve, so the supply and demand pattern is relatively stable. Therefore, it is expected that high-temperature coal tar will be mainly adjusted in a narrow range in July, and the resistance to a sharp rise in prices is strong.

Coal tar pitch: 

In June, the coal tar pitch market fell at a high level, with a cumulative decline of 200-300 yuan/ton. Affected by the trend of high-temperature coal tar of raw materials, coal tar pitch price fell broadly in the first half of the month mainly due to raw materials price decline. However, in the second half of the month, after the strong rise in raw material prices, the price of coal tar pitch has not rebounded in time. Due to insufficient support on the demand side, although the export situation is good, the domestic downstream carbon industry is tepid, the profit is low, and the production enthusiasm is reduced. Since this month, under the downward trend of domestic bulk commodity prices, the prices of downstream steel, electrolytic aluminum and other products have fallen continuously, with a suppressed mentality towards raw materials, purchase and sales enthusiasm has declined. Therefore, raw materials rebounded to a high level, but coal tar pitch has not yet followed up, and coal tar deep processing industry profits have been greatly frustrated. In terms of the latest prices, the current market offers of Shandong and Henan modified coal tar pitch are mostly 5900-6100 yuan/ton. The mainstream price of Shanxi and Hebei coal tar pitch are around 5800-5900 yuan/ton. In the after-market, it is predicted that steel plants and coke enterprises will suffer from profit losses, the operating rate will decline, the supply of high-temperature coal tar will decrease, and the price support will be strong. However, the deep processing of coal tar and the carbon black industry suffered losses, and the construction was frustrated. It is expected that the coal tar pitch market will remain high in the future, the mainstream consolidation, and the long-term bullish.

Carbon black: 

Carbon black price trend fell sharply in June, with a cumulative decline of 800-1000 yuan/ton. Due to the declining trend of raw material prices and cost reduction, the new order pricing of carbon black was mainly downward at the beginning of the month. The downstream demand performance was flat, entering the traditional off-season demand, the goods were insufficient, and purchased on demand. However, with the rebound in the prices of coal tar and anthracene oil in late of the month, carbon black industry losses have intensified. The new order price is expected to rebound next month. In terms of the latest prices, North China dry carbon black N220 mainstream price was 9600-10200 yuan/ton; N330 mainstream transaction price was 9100-9500 yuan/ton. Wet carbon black N220 mainstream price was 9500-10000 yuan/ton; N330 mainstream transaction price was 9000-9400 yuan/ton. East China carbon black N220 mainstream price was 9800-10200 yuan/ton; N330 mainstream transaction price was 9300-9600 yuan/ton.

Needle coke: 

In June, needle coke market price did not have enough power to rise, raw materials prices were loosened, and needle coke price fell from a high level. In June, the coal tar pitch market fell from a high, with a cumulative decline of 200-300 yuan/ton. Petroleum coke fell by 300 yuan/tons in June. In terms of needle coke prices, coal series needle coke calcined coke mainstream prices were about 10000-13000 yuan/ton, and raw coke mainstream price was about 9500-11000 yuan/ton. Oil series needle coke calcined coke mainstream price was about 12000-13500 yuan/ton. Raw coke mainstream price was about 11000-11500 yuan/ton. From the downstream, with the rapid expansion of the lithium battery market and the rapid change of industry technology, leading enterprises are closely distributing the next generation of anode materials. With the implementation of policies to stabilize growth and the receding impact of the epidemic, the demand for real estate, infrastructure and manufacturing is expected to be boosted in the second half of the year. The demand for steel is expected to continue to rebound, and the improvement of consumption margin is expected to increase. For more information about carbon market analysis, please feel free to contact us.