What are the prospects for coal tar?
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This post was last edited by jordan569 on 2013-1-6 23:23. Does the deep processing of coal tar follow the trends in the coking industry? Note $ # $ $
Of course, upstream and downstream relationships?
The prospects for coal tar remain unfavorable
The prospects for coal tar are very good. As oil prices rise, people have begun to explore using coal tar as a substitute for oil as a fuel, as well in emulsions and other applications; how can one say that the situation is not optimistic?
At present, the profit margin on these products is fairly good. However, with a large number of new projects being launched recently, competition for raw material tar has intensified, and raw material prices remain high, which reduces the profit margins on these products. As a result, it’s difficult for our facility to operate at 100% capacity due to insufficient raw materials; it seems that a production scale of less than 150,000 tons lacks competitiveness
Although the deeply processed products of coal tar are closely related to the coking industry, their trends are not determined by the conditions in that industry; rather, they depend on the demand from downstream sectors. The prospects for coal tar do not look very optimistic at present, as the growth in downstream demand far fails to keep up with the increase in tar processing capacity. In recent years, the completion of a large number of new projects has led to a surplus supply in the market for coal tar processing products. In particular, asphalt, which accounts for over 50% of the products derived from the deep processing of tar, has seen its prices remain low over the past year. Currently, the tar processing technology in China is also relatively backward; there are few types of products produced, and asphalt accounts for a large proportion. Compared to other coal chemical routes, the deep processing of tar is not promising at present.
Then there’s no need for further processing; it’s sufficient to use coal tar directly as fuel
Coal tar contains many substances with very high added value, and extracting them can bring significant benefits. But the most critical aspect in coal tar processing is how to deal with asphalt, which accounts for over half of its composition. The market conditions for asphalt have not been good, and this is the main reason why deep-processing enterprises dealing with coal tar are not performing well at present. The good profits of Tangshan Cobbs are due to its asphalt exports, whose price is much higher than the domestic price.
The prospects for coal tar are good – it requires little investment and yields quick returns. Currently, the investment cost for a plant with an annual production capacity of 150,000 tons is around 30 million yuan, and the cost can generally be recouped within a year! !