Paraffin Wax Price Trended Up on Multiple Bullish Factors
According to the chart above, from the end of May, the prices of paraffin wax in China started to trend up. Up to December 3, the average price of semi-refined 58C melt point wax was RMB 5,598.75/mt, down 8% Y-O-Y. The paraffin wax inventory at Sinopec’s and PetroChina’s refineries was around 26.5kt, down 68.5% Y-O-Y. SCI reckons that the current paraffin wax market is mainly supported by active speculations, and the demand slack and peak seasons are not obvious.
In terms of paraffin wax exports, according to the statistics released by the National Development and Reform Commission, from January to October 2020, China’s total paraffin wax export volume was 530kt, up 10.4% Y-O-Y. Though the international trade frictions and the increase in waterway transportation freight suppressed China’s paraffin wax exports, the export volume of paraffin wax in China remained at a relatively high level, mainly because of the low prices of paraffin wax in China’s market. From September to December is the traditional paraffin wax demand peak season in Europe and the U.S., as many traders are active in replenishing for the Christmas Day. However, with the approach of the Christmas Day, the international demand for paraffin wax is gradually weakening.
