2007 Domestic coal tar market analysis and future development direction Shanxi Hongte Coal Chemical Co., Ltd. Li Yucai In recent years, my country's coal tar processing industry has developed rapidly, and the application fields of coal tar downstream products have continued to expand. People are paying more and more attention to the coal tar market and the technological progress and development direction of coal tar processing. Let's communicate with you on this issue of common concern. At the same time, the current problems existing in my country's coal tar processing industry are analyzed, and some suggestions that are beneficial to the development of coal tar chemical industry are put forward. 1. Current status of domestic coal tar processing In recent years, my country's coal tar production, processing volume, trade volume, and price have all undergone great changes. There are many influencing factors, such as the development of the steel industry, changes in oil prices, and the development level of the petrochemical industry. The following is a brief analysis of the coal tar processing situation. 1.1 There are still the following shortcomings in coal tar processing in my country: 1.1.1 Small scale of equipment and scattered layout ; 1.1.2 Unreasonable utilization of thermal energy 1.1.3 Few types of products 1.1.4 Environmental protection issues 1.2. The pattern of concentrated coal tar processing has been formed 1.2.1. Large-scale equipment is put into operation (1) Domestic technology development Shanxi Hongte Coal Chemical Co., Ltd. used domestic technology to build and put into operation a tar processing equipment with a processing capacity of 150,000 tons/year in 2002 ; We further calibrated the processing capacity of the device, transformed the production bottleneck, summed up experience to amplify the process of the first set of devices, developed and constructed the second set of tar processing devices, and achieved success, so that the processing capacity of a single set of devices can reach 250,000 tons/year. In addition, other urban areas in Shandong, Henan, Hebei, Jiangxi, Heilongjiang, Guangdong, and Shanxi are also using domestic technology to build tar processing units with an annual scale of 100,000 to 150,000 tons/year. Domestic tar processing technology has broken through the situation where the maximum design capacity was 100,000 tons/year for decades. (2) Introduction of foreign technology Shanxi Coking Plant has introduced 300,000 tons/year tar processing technology from IRH of France. Shandong Haihua Group plans to use Japanese JFE technology to build a 300,000 tons/year tar processing device, which will greatly improve the scale and equipment level of my country's coal tar processing. Cobbs invested in the construction of a tar processing plant project in Tangshan, which is under design ; Rutger is also planning to enter China, has contacted Doge Enterprises, and is in the investigation and demonstration stage. In a very short period of time, all major tar processing companies in the world will enter China through investment, cooperation and other forms. 1.2.2. Large-scale coal tar processing plants have formed two sets of coal tar processing devices independently developed by Shanxi Hongte Coal Chemical Co., Ltd., with actual production capacity reaching 450,000 tons/year. ; The tar processing equipment introduced by Shanxi Coking Plant and Shandong Haihua Group has increased the factory's production scale to 300,000 tons/year. ; Ansteel Group’s two tar processing units have a production capacity of 260,000 tons/year ; Baosteel currently operates four sets of tar processing units (two sets in Meishan, Nanjing) with a processing capacity of 520,000 tons/year. 1.2.3. The large-scale tar processing equipment under planning and construction will enable centralized processing of coal tar. Shanxi Hongte Coal Chemical Co., Ltd. plans to build a 1 million tons/year coal tar processing base during the "11th Five-Year Plan", which has been approved by the Shanxi Provincial Development and Reform Commission. ; Ansteel Group plans to build a 600,000 tons/year coal tar processing plant, and the project is under review ; Henan Pingdingshan plans to build a 300,000 tons/year coal tar processing unit ; Xuyang Group plans to build a 350,000 tons/year coal tar processing unit, bringing the factory scale to 500,000 tons/year; Shandong Haihua Group and Shandong Carbon Industry Corporation are carrying out technical transformation of tar processing units. After the transformation, both can reach 400,000 tons/year processing capacity. ; At the same time, Hebei Tangshan, Shandong Laigang, and Hubei Wuhan Iron and Steel are all planning to build large-scale coal tar processing bases. ; After several years of development, our country will truly realize centralized processing of coal tar. 2. Coal tar market 2.1. Coal tar production increased in 2007 2.1.1. Among the coke production, the proportion of machine coke increased ; 2.1.2 my country's coke production situation. From January to November 2007, China produced 298.43 million tons of coke, a year-on-year increase of 17.6%. It is estimated that China's coke production in 2007 will be 330 million tons, a year-on-year increase of 14%. The above two factors indicate that my country's coal tar production increased in 2007 compared with 2006, and is estimated to reach 10 million tons. 2.2. Affected by various factors, the supply of coal tar market is tight. 2.2.1. A considerable part of coal tar is diverted to other uses. In addition to coal tar processing, the application fields of coal tar in my country are mainly in the following four aspects.: (1) Carbon black The main raw materials for industrial carbon black production are ethylene tar, anthracene oil and coal tar. In recent years, my country's carbon black production has maintained a high growth rate, reaching 1.852 million tons in 2006. According to incomplete statistics, my country's carbon black production exceeded 2 million tons in 2007. The production of these carbon blacks consumes more than 3 million tons of raw materials, and a considerable part of these raw materials come from coal tar. my country’s carbon black production table in recent years: (10,000 tons) Time output Carbon Black Industry Association National 2003 101.80 2004 96.00 137.00 2005 120.18 161.00 2006 148.61 185.20 2007 January-November 148.82 More than 2 million tons With the development of the automobile industry, the output of carbon black as a rubber reinforcing agent will continue to grow. (2) Coal-based fuel oil In recent years, as crude oil has been operating at high prices and the depth of petroleum processing has continued to increase, the production of its by-product heavy petroleum oil has decreased and its price has increased. The demand for coal-based fuel oil as a substitute for petroleum heavy oil has increased rapidly. It is also used as fuel in industrial kilns such as carbon, glass, and ceramics. Coal-based fuel oil is mainly produced from coal pitch, creosote, and coal tar. At present, some coal tar processing enterprises regard coal-based fuel oil as their main product. (3) Tar export (4) Anti-corrosion and building materials Affected by the above factors, in addition to being processed in specialized processing plants, a considerable part of coal tar is diverted for other uses. The overall coal tar market in 2007 was characterized by increasing volume, tight supply, relatively stable prices, and insufficient processing equipment. (Coal tar price trend chart) Judging from the coal tar price trend in 2007, in each period, although there are certain differences in coal tar prices in various regions across the country, the price trend is consistent. 3. Coal tar market development trends 3.1. The downstream demand for coal tar remains high as oil prices remain high, and people are looking for alternatives to petroleum products. The products processed from coal tar, such as coal pitch, anthracene oil, washing oil, etc., are used as substitutes for petroleum fuel oil and power oil. They are quickly developed and promoted and have a broad market. Only coal pitch is slightly surplus. The application of coal tar directly affects the development of coal tar processing industry. The demand for coal pitch as a binder for molded carbon materials is still growing. Molded carbon materials are mainly graphite electrodes and carbon for aluminum. (1) Graphite electrodes. As of November, the output of graphite electrodes, the leading product in the carbon industry, was 440,820 tons, and is expected to reach 490,000 tons throughout the year. (2) Carbon for aluminum. my country’s electrolytic aluminum consumption was 6.82 million tons in 2005, 7.75 million tons in 2006, 8.81 million tons in 2007, and 10 million tons in 2008. At present, my country's electrolytic aluminum production capacity has exceeded 11 million tons. my country's aluminum carbon anode production, demand and production capacity 10,000 tons Years 1995 2000 2002 2004 2005 Carbon anode production 110 170 255 370 410 Demand 105 160 245 360 400 Production capacity 120 180 270 380 440 Summary of global primary aluminum production (including revised values) (unit: Thousand tons) Time China’s primary aluminum production World’s primary aluminum production 2003 5547 27482 2004 6689 29281 2005 7806 31269 2006 9349 33213 2007 January to August 8070 24444 Based on the above data, the current domestic demand for coal pitch used as a binder for molded carbon materials is about 1.3-1.5 million tons, and the world demand is about 4-4.5 million tons. The demand for coal pitch is growing with the increase in the production of graphite electrodes and electrolytic aluminum. The growth in demand for coal tar determines the growth in demand for coal tar downstream products. Coal tar processing has moved to China along with the coking industry. Therefore, the main production area of coal pitch is in China, and most users of coal pitch are abroad. The export of coal pitch is inevitable. The international price of coal pitch will directly affect the price of domestic coal tar. 3.2. The level of coal tar processing technology and equipment continues to improve, which enhances the comprehensive capabilities of coal tar processing enterprises. 3.2.1. The increase in production scale is conducive to energy conservation and consumption reduction. ; 3.2.2. Increase in production scale ; Increase the variety of coal tar processing products ; 3.2.3. The introduction of foreign technology has improved the quality of products ; 3.2.4. Environmental protection measures are continuously improved. Based on the analysis of the above factors, the international competitiveness of my country's coal tar processing enterprises continues to increase, and the actual processing capacity of coal tar will continue to increase. 4. Conclusion Since 2002, my country's coal tar processing has developed rapidly, and centralized processing of coal tar will soon be realized. In the coming period, the coal tar market supply will show a slight growth or a stable trend. However, due to the continuous expansion of coal tar application fields, the market supply is still tight.