China Paraffin Wax Refineries Held Production Steadily
Introduction: During the Spring Festival holiday, the overall operating rate at the main paraffin wax refineries remained stable, with limited market transactions supported by rigid demand. On the first working day after the holiday, paraffin wax inventory at main refineries hovered at lows. Coupled with expectations of refinery maintenance, paraffin wax listing prices moved up.
Paraffin wax inventory piled up from the pre-holiday due to long-term stable production at refineries.
During the holiday, most traders left the market, resulting in limited and scattered transactions. The main wax refineries operated stably, with inventories increasing slightly compared to pre-holiday levels, but still at relatively low levels, so overall inventory pressure was not significant.
China Paraffin Wax Refinery Running Status and Inventory
China’s refineries maintained stable operations during the Spring Festival. Although refinery inventory accumulation occurred during the holiday, the refinery inventory level in the first week after the holiday was lower than expected. Coupled with unit maintenance plans at Sinopec Shanghai Gaoqiao Petrochemical and Sinopec Jinan Company, market supply expectations became tighter, boosting the paraffin wax market price.
It was heard that PetroChina Daqing Petrochemical plans to replace catalysts on February 20, which will result in a 15-day shutdown. However, the total supply will likely remain stable, with a decrease in the export volume of SR 58C wax resources and an increase in the supply of 58C slack wax resources.
Trader and End-User Resumption After the Holiday:
Traders: Traders have gradually resumed operations, and the price increase at refineries continues, boosting market transactions.
End-users: Candle manufacturers are gradually resuming production, and supported by the “buy on the rise, not on the fall” mentality, replenishment inquiries have increased significantly. Industries such as board materials, packaging, and plastics are steadily increasing their operating rates.
It is expected that after the Lantern Festival (February 12), paraffin wax downstream and end enterprises may resume production completely, which is likely to further stimulate stable growth in the rigid demand. The transaction activity in various sectors of the paraffin wax market will likely increase. With the recovery of demand and the expectations for tight supply, paraffin wax prices may be stable-to-rising in the short term.
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