What is driving the recent price surge in China's industrial naphthalene market?

What is driving the recent price surge in China's industrial naphthalene market?
China's industrial naphthalene market has seen a notable uptick since late August, with Shanxi Jinyuan auction prices climbing to 3,700 yuan/ton, up 240-250 yuan week-on-week, and some regions approaching the 4,000 yuan threshold. Key drivers include the restart of previously idled naphthalene-based phthalic anhydride plants, which has boosted downstream demand. Construction activity for naphthalene-based superplasticizers is also firming as projects accelerate. On the cost side, high-temperature coal tar prices remain elevated, keeping deep-processing margins under pressure and strengthening sellers' resolve to push prices higher. Notably, naphthalene-based phthalic anhydride producers still enjoy healthy margins averaging 1,432 yuan/ton in August, giving them room to absorb higher feedstock costs.