Why is China's high-temperature coal tar market weakening despite stable coke oven operations?

Why is China's high-temperature coal tar market weakening despite stable coke oven operations?
China's high-temperature coal tar market is under persistent downward pressure. In late May, prices fell 50-300 yuan/ton across Inner Mongolia, Shaanxi, and Shanxi, with regional spreads widening as low-cost supply moved across regions. Coke plants are running at 74.47% utilization, keeping supply ample while inventories build. Downstream deep-processing units are only at 56.95% operating rates, with coal pitch, industrial naphthalene, and anthracene oil prices all softening. Weak tire orders, sluggish road construction, and waterproofing demand are squeezing processor margins, making buyers resistant to high feedstock prices. The market is expected to stabilize at lower levels only after supply-side adjustments and destocking run their course.