Affected imports from China and Malaysia surged the prices of Paraffin wax in South Korea

In South Korea, the prices of Paraffin wax surged in this week and were observed to be $1660/ton (60-62) CFR South Korea and $1742/ton (60-62) spot Ex-Busan. The prices were robust from the start of the year where the prices on this first week of Jan were $1600/ton CFR South Korea and $1676/ton Spot Ex-Busan.

The crude oil prices in South Korea were increased by 40 to 70 cents per barrel which created impact on its domestic petrochemical market. South Korea majorly imports its Paraffin wax from China and Malaysia which were impacted due to the upcoming winter Olympics which affect the overseas trading market. The increase in demand of Paraffin wax from downstream cosmetics, candle making, and packaging created supply shortage in the domestic market and the local producers increased the prices. In China, government intervention on the 70% operating rates limitation until the Winter Olympic had also impacted the Paraffin wax production units. Port congestions and increase in freight charges also impacted the import market of South Korea.

According to ChemAnalyst, in the near term the prices of Paraffin wax will increase in South Korea. Robust demand of Petroleum wax in several downstream industries will more likely to create supply shortage and the local producers will increase the prices for domestic consumers. Rise in gas and oil exploration activities is anticipated to drive the availability of raw material which in turn propel the Paraffin Wax market in the forecast period. It is anticipated that after Winter Olympics the trading situation will become stable with increase in exports to the overseas suppliers Expansion in use of environment- friendly alternative, like beeswax, soy, and polyethylene wax, is additionally projected to hamper the interest in Paraffin wax during the forecast period.