Coke tar prices declined from their highs this week, with Anhui falling to 3,960 yuan/ton. Auctions in Shandong and Hebei regions failed, while Shanxi dropped by 180 yuan/ton, dampening market confidence.

This week marks a critical adjustment phase for coal tar at elevated levels, with prices retreating downward. Key factors driving price fluctuations are summarized below:

① Among deep-processed products, only coal tar pitch followed suit in rising smoothly. Anthracene oil prices retreated to ¥3,850/ton (ex-factory, accepted payment), facing significant shipment pressure. Prices for minor oils like industrial naphthalene also weakened.

② Deep processing enterprises operate near the break-even point, dampening enthusiasm amid high feedstock costs.

③ Morning auction price declines in Anhui region impacted market sentiment.

The coal tar market remains in a tug-of-war between bullish and bearish forces, with future price trends uncertain. On one hand, supply remains relatively stable. On the other, deep processing plants operate at high capacity with pre-holiday stockpiling expectations. Additionally, deep-processed products have not kept pace with raw material price increases, leading to price inversion between anthracene oil and coal tar, which constrains industry profitability. Furthermore, falling raw material prices pose a risk of coal tar price declines. This week's price volatility has dampened market sentiment, with some players growing more bearish.

Carbon black producers, facing worsening losses, quoted higher prices driven by costs, yet these remained “prices without transactions” with no actual deals concluded. As feedstock oil prices softened, carbon black prices returned to a more rational range.

With major downstream tire manufacturers gradually shutting down for holidays, demand for rubber products and color masterbatches remains weak. The current sluggish demand for carbon black is unlikely to change.

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