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Paraffin Wax Manufacturers in 2023
Paraffin Wax Manufacturers in 2023
2023-10-25
Wholesale wax for candles
Wholesale wax for candles
2023-10-31

Paraffin Wax Prices in China: Limited Upside Potential Amid Stable Market Conditions

Overview of China’s paraffin wax market in June 2023

In June 2023, China’s paraffin wax market prices continued to rise, but the increase slowed down from the beginning of the year and the transaction volume decreased. The main factors affecting the market structure include oil price fluctuations, seasonal factors leading to weak downstream demand, and an increase in the supply of alternative products.
Despite a strong start to the year, paraffin prices have taken traction and continued to rise, but traders are becoming increasingly cautious as margins compress. The market outlook for the coming months appears stable, with some factors supporting prices and others limiting potential gains.

July 2023: Tight paraffin supply, weak demand, stable prices

  • Refinery paraffin prices will remain stable in July 2023. While tight supply may provide some support for pricing, market gains are limited due to weak demand and favorable prices.
  • There are many factors leading to tighter supply in July 2023. First, some refineries were undergoing routine maintenance during this period, resulting in reduced production capacity. Secondly, the increased supply of alternative products such as synthetic wax has put competitive pressure on paraffin wax prices.
  • However, paraffin demand is weak in July 2023, mainly due to seasonal factors. Hot weather at this time of year typically results in reduced consumption of paraffin as it is used less in candle production and other applications.
  • Therefore, refinery paraffin prices will remain stable in July 2023, with limited upside potential.
Paraffin Wax Prices in China

August and September 2023: Domestic and export factors support prices

  1. Paraffin prices are generally stable in August and September 2023. Although domestic demand is still limited, the growth in exports during the traditional peak season, coupled with improved demand before the Mid-Autumn Festival and National Day, will provide some support for prices.
  2. As the peak export season approaches, Chinese paraffin producers are facing increased demand from overseas markets. In addition, China’s Mid-Autumn Festival and National Day celebrations have led to a surge in domestic paraffin consumption for candles and other holiday products.
  3. Despite these positive factors, market prices will not increase significantly during this period. The continued availability of alternative products, coupled with caution among traders due to margin compression, has kept paraffin prices relatively stable.

Second half of 2023: Price stability, limited upside potential

  • To sum up, China’s paraffin wax market will maintain a stable price environment in the second half of 2023. Tight supply caused by factory maintenance in August and October will provide some support, while increased demand before Christmas and other holidays will provide some support. Increase transaction volume.
  • However, the overall market conditions remain stable, and there is limited room for paraffin price increases. The growing supply of alternative products such as synthetic waxes will continue to exert competitive pressure on the market. In addition, the cautious approach adopted by traders due to squeezed profit margins also helped to keep prices stable.
  • To sum up, China’s paraffin market will enter a stable period in the second half of 2023, with limited room for price increases. Although factors such as tight supply and increased holiday demand have provided some support to the market, the market remains stable due to the impact of substitute products, weakening downstream demand, and oil price fluctuations.

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