The price of coking chemical products increased especially for tar and crude benzene

Since early August, Shanxi coking chemical products have seen a significant increase, especially tar and crude benzene. At present, the ex-factory price of tar in major coking enterprises is 1,100 yuan (ton price, including tax, the same below), which is 64.17% higher than that of 670 yuan in April; the price of crude benzene has broken through from around 3,150 yuan in late June to 4,000 yuan. yuan.
Since the beginning of July, the tar market has maintained a strong upward trend, the price is firm, and the current price has been equal to or exceeded the price of Beijing, Tianjin and other places, which is rare in the past. According to industry analysts, the reasons for the increase in tar prices are various. First, since the end of the first quarter, Shanxi coke companies have restricted production in large areas due to coal shortages and the market. In particular, in early June, the Shanxi coke industry signed the Mianshan Convention. “Generally limited production of 20% to 40%, resulting in reduced supply of tar; Second, the international crude oil prices continue to rise, tar processing companies operating rate increased, making tar demand increased; third is the impact of artificial speculation.
The tight tar supply and demand relationship has stimulated the purchasing desires of downstream users. According to coke enterprises, the current business of contacting tar is several times more than before.
The high tar price operation and the limited rise in tar downstream products have resulted in a decline in the efficiency of tar processing companies. Some small tar processing companies have suffered losses and have had to stop production to exit the market. In addition to limiting production, large tar processing companies also increase product prices. These conditions have already warned of high tar prices. It is expected that tar prices will fall as downstream demand decreases. Therefore, analysts remind tar production companies to remain calm in the afternoon.

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