【Coal Tar Pitch Market】Initial Decline Followed by Recovery

In May, the domestic coal tar pitch market in China experienced significant fluctuations, with prices initially falling and then rising. Learn more about graphite electrodes prepared with coal tar pitch as an auxiliary material. In the first half of May, the prices continued to decline, with the reference prices for modified asphalt in the main production areas dropping to 2,700-3,400 CNY/ton. However, in the second half of the month, there was a sharp increase in the tender prices for coal tar pitch, leading to a substantial rebound in coal tar pitch prices. By the end of May, the reference prices for modified asphalt had rebounded to 4,400-5,000 CNY/ton. Apart from price changes, the purchasing attitude of downstream markets also varied. In the early half of the month, due to the continuous price decline, downstream markets adopted a "buy on demand" approach, resulting in moderate overall shipments by asphalt deep processing companies. However, with the significant rebound in coal tar pitch prices and the support of some downstream companies' restocking needs, the overall shipments of coal tar pitch deep processing companies improved compared to the previous period.

Similarly, the domestic coal tar pitch market experienced a downward trend followed by a rebound in May. In the first half of the month, downstream markets primarily purchased coal tar pitch based on demand, and the weak performance of deep processing products led to increased suppression of coal tar pitch by deep processing companies, causing prices to continue to decline. However, in the mid-term, with the decrease in coking plant operating rates and a reduction in coal tar pitch supply, the supply-side factors favored the coal tar pitch market. Additionally, influenced by the market's positive sentiment, coal tar pitch prices experienced a significant rebound. By the end of the month, the reference prices for coal tar pitch were around 3,920-4,160 CNY/ton in Shanxi, 3,965-4,100 CNY/ton in Hebei, 3,910-4,250 CNY/ton in Shandong, and 3,965-3,970 CNY/ton in Henan.

In terms of prebaked anode, the overall production remained stable in May, with some companies still recovering from maintenance. The prices of prebaked anode continued to decline by 850 CNY/ton in May, and the profitability of companies remained poor. Some companies maintained a strategy of reducing inventory, and with the unfavorable price trends of prebaked anode, downstream demand did not show significant improvement. Therefore, the overall supply of prebaked anode did not increase noticeably in May.

Currently, the coal tar pitch market saw a significant increase in late May, primarily supported by the favorable factors in the raw material market. Expectations of further production cuts by coking plants persist, and the high operating rates of deep processing companies indicate good demand for coal tar pitch. From the perspective of the downstream market, the price of prebaked anode is expected to continue declining in June, as the market conditions remain weak and the purchasing attitude of downstream companies varies. While some companies restocked due to the "buy on rise, not on fall" mindset, others remain cautious about the sustainability of the recent price increase in coal tar pitch. Although the purchasing demand for anodes by electrolytic aluminum companies in Yunnan increased in June, the low market prices have limited the willingness of some anode companies to significantly increase their operating rates. Therefore, the overall growth in demand for coal tar pitch in the later period still needs to be closely monitored. It is expected that the coal tar pitch market will have positive expectations in early June, but the price trend may shift towards weakness after the restocking needs of the downstream market are fulfilled. Contact us for the latest reports on carbon materials industry.