Foreword: The ethylene tar market still has some localized support, but negative factors are quietly brewing. During the week, prices from major state-owned enterprises remained stable and wait-and-see, while some self-operating enterprises saw their bidding transaction prices fall first.
Image 1 Domestic Ethylene Tar Price Trend Chart
Source: chempricehub
Supported by maintenance at several plants, the circulating volume of ethylene tar decreased, leading to tight supply, which provided major support to the ethylene tar market. Last week, high bidding prices for high-temperature coal tar supported industry confidence, pushing ethylene tar prices up at the beginning of the week. Mid-week, multiple failed auctions of high-temperature coal tar led to a wait-and-see sentiment dominating the ethylene tar market, with prices stabilizing in a consolidation pattern, and high bidding prices declining.
Image 2 Domestic High-Temperature Coal Tar Price Trend Chart
Source: chempricehub
Table 1 Current Prices of High-Temperature Coal Tar and Related Products (Unit: Yuan/Ton)
Source: chempricehub
The high-temperature coal tar market ended on a positive note last week, but bidding prices declined this week. This week, the high-temperature coal tar market entered a downtrend with significant declines, exceeding market expectations. As of last week, the domestic high-temperature coal tar market had been rising for three consecutive weeks, with an increase range of 400-800 yuan/ton. The Northwest region saw the largest increase, reaching 800 yuan/ton, severely pressuring downstream plant costs. Consequently, buying sentiment gradually weakened, and bearish pressure intensified, leading to growing bearish expectations this week. Anhui Linhuan's auction on Tuesday failed, adding to market pressure. As auction prices from major production areas were released, the overall decline widened significantly this week. By Thursday, the overall decline in main production areas was around 150 yuan/ton. The Northwest region, having experienced larger earlier increases, saw a decline of 300 yuan/ton this week. In the short term, bearish factors are increasing in the coal tar market, with further room for decline.
Image 3 Domestic Carbon Black Price Trend Chart
Source: chempricehub
Carbon black is the main downstream product of ethylene tar. New order negotiations in the domestic carbon black market are weak. The decline in new order tender prices for carbon black raw materials has widened, creating obvious bearish pressure on costs. This affects new order negotiations in the carbon black market. Due to limited transactions at previous high prices, some carbon black offer prices have gradually declined. Market trading sentiment has cooled. Entering June, end-user demand has been weak, with tire companies reducing procurement volumes and showing clear resistance to high prices. Combined with the recent significant decline in the raw material market, bearish factors suggest carbon black new orders will continue to decline and consolidate.
Image 4 Domestic Low-Sulfur Fuel Oil Production Changes (10,000 Tons)
The US-Iran conflict restricts gasoline and diesel exports. Domestic demand for bonded bunker fuel is rising. Low-sulfur bunker fuel, with its advantages (exemption from consumption tax, export tax rebates, no export ban, and ability to absorb residual oil capacity), has become a product that domestic state-owned refineries are willing to increase production for export. Prices for low-sulfur residue/asphalt and shale oil have been pushed up. The cost of blending bunker fuel is firm. Simultaneously, inspection impacts in the north have slowed settlement paces. Raw material shortages in East and South China have also tightened finished product supply, supporting reluctance among distributors to sell at lower prices and prompting price increases. The national average weekly price has risen sequentially.
For bunker supply, freight rates have edged up. End-user demand fluctuates in a firm-to-strong trend in the short term, but bunker buying sentiment remains focused on small-lot, just-in-time needs. Bunker supply companies in many regions face increased difficulty in procuring heavy fuel oil, mainly relying on digesting earlier inventories for supply security. Bunker supply quotation prices for heavy fuel oil have risen significantly overall, but actual transactions await downstream absorption and digestion.
Image 5 Domestic Artificial Graphite Anode Price Trend
Source: chempricehub
Coated pitch's main downstream market is anode materials. Recent downstream demand has been good, with the power battery and energy storage markets being the main supporting drivers. Raw material trends diverge: petroleum coke prices are declining; needle coke prices remain firm due to rising prices of feedstock oil slurry; graphitization costs are high. Production cost pressure for artificial graphite anodes is significant. Coated pitch prices remain primarily stable with acceptable operating rates.
Yangzi Petrochemical entered maintenance on May 5, 2026, expected to last 55 days; Sinopec-SK (Wuhan) Petrochemical entered maintenance on June 4, 2026, expected to last 52 days; commercial volumes are decreasing. Hainan Refining & Chemical (June 6) and Shenghong Petrochemical (June 25) will successively enter maintenance, further reducing their external supply. Gulei Petrochemical's unit has not yet started up, with no external sales currently. Maoming Petrochemical and Jieyang Petrochemical switched to captive use in June. Guangxi Petrochemical is using two-thirds for captive use, reducing external supply.
Current residual supportive factors for the ethylene tar market are limited, while multiple bearish factors are quietly emerging. The homogeneous product, high-temperature coal tar, is continuously declining, highlighting its price advantage and diverting downstream purchases. The carbon black downstream tire industry is about to enter its traditional off-season, with weakening end-user operating rates and shrinking procurement, continuously pressuring the demand side. Previous high bidding prices for ethylene tar have already seen significant declines, and bearish sentiment in the market is rising. However, the current supply of circulating ethylene tar remains persistently tight, providing rigid support on the supply side. Further development requires continued observation.
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