Paraffin Wax Prices to Rise on Continuously Low Inventory at Refineries
Currently, the prices of paraffin wax in China are in an uptrend. The supply of paraffin wax at refineries is relatively tight, and the speculations in the market are active. Considering market sentiment, prices of substitutes, inventory at refineries, downstream demand, etc., SCI reckons that the future prices of paraffin wax will go up further.
The paraffin wax inventory at refineries is one of the most important factor determining the listed prices at refineries. According to the chart above, in recent five years, the paraffin wax inventory at China’s refineries fluctuated dramatically and was largely in an uptrend until May 2020. The fluctuation of inventory within a year is closely associated with the paraffin wax demand slack and peak season. Specifically, the paraffin wax inventory usually decline from February to March and increase from May to August.
