Coal tar tightness shows signs of easing

摘要

The surge in demand for metallurgical coke in China, to support the burgeoning steel industry there, has led to a marked tightness for met coke around the world. As a result, coking ovens are being operated to their capacity in order to meet domestic demands in countries outside of China, and a number of US blast furnaces continue to operate at reduced levels due to the merchant coke market crisis. Germany's Rogesa looks set to take over and operate the four coking batteries of French HBL at Caning, previously slated for closure by the end of 2005. Similarly, Riva has been taking the necessary step to re-open the idle coke batteries at Taranto, and it hopes to have five batteries operational by year end. In India, VSP has announced plans to construct a fourth coke oven battery with by-products recovery. The net result for the coal tar pitch industry has been a gradual easing in the tightness of tar supplies in most regions. Most distillers should experience slightly less competition for tars, and the trend looks set to continue until the met coke tightness begins to ease. Nonetheless, the occasional spot cargo of coal tar is still being aggressively sought after by several major players, keeping spot prices well supported. In Europe, Koppers is continuing to wind down its activity at its Scunthorpe works, though the facility is still producing a range of specialty pitches. Meanwhile, their PA facility in Totten is slated for closure next month. Elsewhere, Ukrainian pitch is gaining a foothold in several major markets, including Western Europe, the Middle East, and Latin America.