For the Quarter Ending September 2024
North America
The North American Paraffin Wax market experienced mixed trends throughout the third quarter of 2024. In the initial month, prices surged significantly due to supply shortages and elevated freight charges, which were largely attributed to ongoing logistical challenges and disruptions in supply chains. These factors heightened production costs and led to increased pricing pressures on Paraffin Wax. However, as the quarter progressed, prices began to ease. A slight reversal in freight charges, coupled with a decline in the price of essential raw materials, particularly Crude Oil, contributed to this downward price adjustment. As crude oil prices stabilized, the production costs associated with Paraffin Wax manufacturing decreased, allowing for more competitive pricing in the market.
Additionally, diminished demand from key end-user sectors, notably the cosmetics and candle-making industries, further supported the price dip. As consumer spending habits shifted and demand for non-essential goods waned, manufacturers faced increased inventory levels, prompting them to reduce prices to stimulate sales.
Consequently, the North American Paraffin Wax market reflects a complex interplay of supply-side challenges and changing consumer dynamics, resulting in a fluctuating pricing environment during the quarter. The latest quarter ending price of Paraffin Wax CFR Houston was reported at USD 1700/MT.
APAC
The third quarter of 2024 in the APAC region witnessed a notable decrease in Paraffin Wax prices, reflecting a challenging market environment. Several factors contributed to this downward trend, including a surplus in global supply, subdued demand from key industries such as cosmetics and candle-making, and logistical challenges like port congestion. These elements collectively resulted in price reductions, with China experiencing the most significant fluctuations. Initially, the rising cost of crude oil, a critical feedstock for Paraffin Wax production, exerted upward pressure on prices, prompting increased production rates. However, the prevailing lacklustre demand, both domestically and internationally, coupled with ongoing supply chain disruptions, led to a narrowing gap between supply and demand. This shift ultimately contributed to the observed price declines. Throughout the quarter, Paraffin Wax prices recorded a 4% decrease compared to the same period last year and a notable 5% drop from the previous quarter in 2024. Furthermore, the comparison between the first and second halves of the quarter indicated a 3% decrease, culminating in a closing price of USD 1,190 per metric ton (MT) for Paraffin Wax in China. This overall trend underscores the complexities facing the market as it navigates fluctuating supply and demand dynamics.
Europe
Throughout the third quarter of 2024, the Paraffin Wax market in Europe experienced a consistent decline in prices, with Germany witnessing the most significant changes. Several factors contributed to this downward trend. A notable reduction in demand from key sectors, including cosmetics and candle-making, coupled with ongoing trade uncertainties and logistical challenges, created an environment conducive to falling prices. Moreover, a surplus in supply—driven by stable production levels and limited international demand—further exacerbated the situation. Seasonal fluctuations, alongside the impact of global events on the supply chain, played a crucial role in shaping the overall pricing environment. Notably, compared to the same quarter last year, prices remained unchanged, indicating a stagnant market. However, when compared to the previous quarter in 2024, there was a 1% decrease, reinforcing the ongoing downward trend. In particular, the second half of the quarter saw a further price decline of 1% compared to the first half. As Q3 concluded, the price of Paraffin Wax (60-62) CFR Hamburg in Germany was recorded at USD 1,580 per metric ton (MT), underscoring the prevailing negative pricing sentiment within the market.
For the Quarter Ending June 2024
North America
The North American Paraffin Wax market experienced mixed market sentiments. The price increased during the initial month of the quarter by a margin of 1 % however, dipped further throughout the quarter. The increased price of essential raw material crude Oil during this period prompted increased production rates and energy prices thus exerting upward pressure on Paraffin Wax prices. The ongoing conflict between Israel and Hezbollah, along with drone attacks on Russian refineries, introduced considerable uncertainty into the oil market. These events heightened concerns about potential supply disruptions, leading to increased prices for crude oil and its derivatives, including Paraffin Wax.
The data indicated a significant surge in sales for leading players in the Western market, with sales growth exceeding 6%. Notably, L'Oréal, the world's largest beauty company, reported sales growth of over 12% in both North America and Europe, with its mass-market range and dermatological products offsetting weaknesses in the luxury segment. The increased sales of cosmetic products subsequently stimulated demand for Paraffin Wax, which is a vital ingredient in various cosmetic formulations.
However, prices dipped later. Throughout this period, the inflow of cargo was smooth, and no major hindrances in the supply chain were reported. Simultaneously, demand began to drop as consumers had already stocked up on inventories. While another prominent downstream the candle-making sector maintained steady demand, it was insufficient to offset the overall market weakness. Concluding the quarter, the price of fully refined paraffin wax (CFR-Houston) settled at USD 1803/MT.
APAC
The North American Paraffin Wax market experienced mixed sentiments in the second quarter. Prices initially rose by 3.1% in the first month but declined as the quarter progressed. The rise in essential raw material costs, particularly crude oil, led to increased production rates and energy prices, exerting upward pressure on Paraffin Wax prices. Geopolitical tensions, such as the conflict between Israel and Hezbollah and drone attacks on Russian refineries, introduced uncertainty into the oil market, heightening concerns about supply disruptions and causing crude oil and its derivatives, including Paraffin Wax, to become more expensive. Despite this, the increased sales of cosmetic products, particularly in the Chinese market, stimulated demand for Paraffin Wax, a crucial ingredient in various cosmetic formulations. Surveys showed significant growth for leading players like L’Oréal, with a month-on-month increase of over 50%, Head & Shoulders with a 68.7% rise, and Lancôme experiencing more than 50% growth. However, Paraffin Wax prices dipped later in the quarter due to elevated freight charges and port congestions, which deterred international buyers and complicated supply chain logistics, exacerbating the oversupply situation. Additionally, the anticipated seasonal demand increase from the candle-making industry did not materialize, leaving a significant supply-demand gap that pressured prices downward. South Korea experienced the most pronounced price fluctuations, with a steady decline in prices driven by high inventory levels and weakened demand, amplified by logistical challenges and port congestion. By the end of the quarter, Paraffin Wax prices stood at USD 1,308 per metric ton CFR Busan in South Korea.
Europe
In the European paraffin wax market, the market was volatile. The price rose 1% in the first month of the quarter but continued to decline during the quarter. The increase in the price of the most important raw material, crude oil, increased production volumes and energy prices during this period, which caused upward pressure on the price of paraffin wax. The ongoing conflict between Israel and Hezbollah and drone attacks on Russian refineries have brought considerable uncertainty to the oil market. Those incidents raised concerns about possible supply disruptions, leading to higher prices for crude oil and its derivatives, including paraffin wax. The research showed that the sales of the main players in the western market increased significantly, the sales growth was more than 6%. In particular, L'Oréal, the world's largest beauty company, reported sales growth of more than 12% in both North America and Europe, with its wide range and dermatology products compensating for weaknesses in the luxury segment. The increase in sales of cosmetics later increased the demand for paraffin wax, an important ingredient in various cosmetics. Later, however, prices fell. During this period, the inflow of goods was smooth and there were no major obstacles in the supply chain. At the same time, demand began to decline as consumers had already gotten their supplies. While there was continued demand in the other important candle sector, it was not enough to offset the overall weakness of the market. At the end of the quarter, the price of fully refined paraffin wax FD Surrey stabilized at USD 2,036/MT.
For the Quarter Ending March 2024
North America
The North American Paraffin Wax market exhibited a volatile nature throughout the first quarter of 2024, particularly in the USA market. Prices experienced a notable decline during the initial month of the quarter but saw subsequent increases as the quarter progressed.
Demand for Paraffin Wax from western countries was modest during the initial week of January, coinciding with New Year festivities, with modest purchases observed from downstream candle making sectors; however, this did not significantly impact Paraffin Wax prices. Conversely, prices surged significantly during February and March as anticipation for forthcoming Lunar New Year, Ramadan, and Easter festivities heightened. Concurrently, demand from the cosmetics and haircare segments also revived as the summer season approached.
Furthermore, the festive atmosphere prevalent throughout the quarter resulted in a noticeable slowdown in operational efficiencies within manufacturing facilities, as personnel adjusted their work pace to align with celebratory events. Consequently, this operational deceleration added pressure to the already constrained supply of Paraffin Wax during the period. As of the latest available data, the quarter-ending price for Paraffin Wax Cost and Freight (CFR) at Houston in the USA was recorded at USD 1851 per metric ton.
APAC
The Asian Paraffin Wax market displayed a volatile nature throughout the first quarter of 2024, with China and South Korea emerging as the most affected countries. Prices underwent a notable decline during the initial month of the quarter in the Asian market but subsequently experienced increases throughout the quarter. In January 2024, demand for Paraffin Wax from the Asian cosmetics and candle making market remained subdued, with no new bids or inquiries observed during this period. However, demand from importing western countries was modest during the initial week of January, coinciding with New Year festivities, although it did not significantly impact Asian Paraffin Wax prices. Contrarily, prices surged significantly during February and March as anticipation for forthcoming Lunar New Year, Ramadan, and Easter festivities heightened. Concurrently, demand from the cosmetics segment also revived as the summer season approached. Moreover, the festive atmosphere prevalent throughout the quarter resulted in a noticeable slowdown in operational efficiencies within manufacturing facilities, as personnel adjusted their work pace to align with celebratory events. Consequently, this operational deceleration added pressure to the already constrained supply of Paraffin Wax during the period. As of the latest available data, the quarter-ending price for Paraffin Wax Cost and Freight (CFR) at Busan in South Korea was recorded at USD 1313 per metric ton.
Europe
The European Paraffin Wax market displayed a volatile nature throughout the first quarter of 2024, with Germany and the U.K emerging as the most affected countries. Prices underwent a notable decline during the initial month of the quarter but subsequently experienced increases as the quarter progressed. Demand for Paraffin Wax from western countries was modest during the initial week of January, coinciding with New Year festivities, with modest purchases observed from the candle making and cosmetics markets; however, this did not significantly impact Paraffin Wax prices. Conversely, prices surged significantly during February and March as anticipation for forthcoming Lunar New Year, Ramadan, and Easter festivities heightened. Concurrently, demand from the cosmetics segments also revived as the summer season approached. Moreover, the festive atmosphere prevalent throughout the quarter resulted in a noticeable slowdown in operational efficiencies within manufacturing facilities, as personnel adjusted their work pace to align with celebratory events. Consequently, this operational deceleration added pressure to the already constrained supply of Paraffin Wax during the period. Additionally, the fluctuating price of the essential raw material, Crude Oil, led to heightened production costs, further exerting upward cost pressure on Paraffin Wax prices. As of the latest available data, the quarter-ending price for Paraffin Wax, Free Delivered (FD), at Surrey in the U.K was recorded at USD 2046 per metric ton.
For the Quarter Ending December 2023
North America
In the North American region, the Paraffin Wax market exhibited bearish trends throughout the final quarter of 2023, concluding in December.
This decline was predominantly influenced by diminished demand for Paraffin Wax in both domestic and international cosmetics and candle making markets, aggravated by the prolonged downturn in global crude oil prices. The decision to impose sanctions on Venezuelan Crude oil sales and exports impacted the global crude oil value, providing some relief to downstream industries. Furthermore, lacklustre international demand, coupled with persistent weaknesses in the domestic cosmetics and candle making sectors, exerted downward pressure on Paraffin Wax prices.
As the quarter progressed, Maersk's announcement of rerouting vessels away from Red Sea routes, opting for navigation around Africa's Cape of Good Hope, significantly increased tonne-miles. These strategic changes posed a multifaceted challenge for global trade, leading to a surge in inventories at ports. The redirection of shipping routes and the resultant increase in tonne-miles further contributed to the complex dynamics influencing the Paraffin Wax market, reinforcing the overall bearish trajectory during this period.
APAC
The Paraffin Wax market in the Asia-Pacific region displayed bearish trends throughout the concluding quarter of 2023, ending in December. This decline was primarily influenced by subdued demand for Paraffin Wax in both domestic and international markets, exacerbated by the prolonged downturn in global crude oil prices. The lacklustre international demand, coupled with sustained weakness in the domestic cosmetics and candle making sectors, contributed to a downward pressure on Paraffin Wax prices. Additionally, disruptions in the Red Sea, a critical trade route, further compounded the situation, leading to escalated ocean freight rates. As the quarter unfolded, global Major shipping companies such as Chinese Cosco and its subsidiary OOCL, along with Taiwanese Evergreen, temporarily suspended cargo transportation along the Red Sea route, a vital maritime corridor connecting Europe, Asia, and Africa amidst Yemen-Houthi attacks. This interruption rerouted commodities through alternative channels, resulting in delayed exports and a notable build-up of inventories at Chinese ports. The intricate interplay of these factors contributed to a narrowing gap between demand and supply, reinforcing the overall downward trajectory in Paraffin Wax prices.
Europe
In the European region, the Paraffin Wax market exhibited bearish trends throughout the final quarter of 2023, reaching a culmination in December. This downturn was primarily driven by a decline in demand for Paraffin Wax within both domestic and international cosmetics and candle making markets. The extended downturn in global crude oil prices further exacerbated these challenges. The imposition of sanctions on Venezuelan Crude oil sales and exports played a role in influencing the global crude oil value, providing some relief to downstream industries. Additionally, subdued international demand, coupled with enduring weaknesses in the domestic cosmetics and candle making sectors, contributed to the downward pressure on Paraffin Wax prices. As the quarter unfolded, attacks on Red Sea trade by Yemeni rebels heightened concerns about the safety of maritime traffic in the region, leading to disruptions in Red Sea trade. These disruptions are anticipated to have a significant impact on global supplies of various commodities, including Paraffin Wax. Shippers responded by imposing additional fees amidst the trade disruption in the Red Sea, prompting Asian consumers to exhibit hesitancy in making bulk purchases. Consequently, this situation has led to a notable increase in inventories within the European market. The intricate interplay of these factors contributed to a narrowed gap between demand and supply, reinforcing the overall downturn in the Paraffin Wax market.
For the Quarter Ending September 2023
North America
The Paraffin Wax prices showcased an overall marginally upward trend in the Quarter ending September 2023 in North America. However, the Paraffin wax prices declined in July 2023, in the US market, due to a decrease in the demand fundamentals amidst a high level of stocks. Furthermore, the Paraffin Wax prices in the North American region surged in August and September 2023 due to high-cost inflow of imports and constrained availability of supplies. The US downstream candle-making and cosmetics sector has also marginally rebounded in the USA during September 2023. As a ripple effect, the Paraffin Wax price rise in the US market was prompted by the tightening of supplies amidst rising production costs and elevating importing prices. In addition, on the demand side, the US downstream market participants opted to revive production run rates amidst upcoming demand in the last quarter of the year. Therefore, the market participants' outlook for Paraffin Wax prices is based on concerns about the slow increment in the downstream demand towards the end of the year and the shortage of stock availability which also provided them to sustain their margins at the termination of this quarter.
Asia
The Asian Paraffin Wax prices recorded mixed market sentiments in the quarter ending September 2023. In China, the pricing of Paraffin Wax remained upward for the two months of the quarter followed by a decline in prices observed in July 2023. These price fluctuations resulted from the sluggish international demand along with the persistent softness in domestic demand from China's candle-making and cosmetics sectors in July 2023. It was anticipated that the restrained regional demand would continue to exert downward pressure on export prices throughout the quarter. However, the influence of the oscillations in crude oil prices, as well as tight supplies within the Asian market prompted the surge in the Paraffin Wax prices for the H2 of the quarter. Furthermore, merchants and downstream converters took advantage of reduced inventory levels and sustained their margins in anticipation of the Golden Week Holiday in China. Consequently, the Paraffin Wax price surge in South Korea observed in the second half of the quarter of 2023 resulted from factors, including the persistently modest demand dynamics and limited supply in Q3 of 2023 amid surging crude oil values.
Europe
The Paraffin Wax in the Eurozone gained mixed market sentiments in the third quarter of 2023 as the July prices were primarily influenced by the low demand whereas, the upstream side in the second half of the quarter overweighed demand dynamics. The Paraffin Wax prices in the European market surged in September 2023 due to the high-cost inflow of imports from the exporting nation China and the constrained availability of supplies. The German downstream candle-making and cosmetics sector has also marginally rebounded in the domestic market during September 2023 amidst approaching seasonal consumption in Q4. Conclusively, the main factor behind the Paraffin Wax price rise in the regional market was prompted by the tightening of supplies amidst elevating importing prices with a rise in the crude oil price trend. The market participants' outlook for Paraffin Wax prices in Q4 is based on concerns about the slow increment in the downstream demand towards the end of the year and the shortage of stock availability which also provided them to sustain their margins in this quarter.
For the Quarter Ending June 2023
North America
The North American market witnessed a deprecation of more than 5% in prices of paraffin wax with the overall situation being bearish throughout the second quarter of 2023, despite being bullish at the start of second quarter of 2023 due to a healthy demand from downstream cosmetic industry. However, cheap inflow of Asian products particularly from China and the decline in the prices of crude oil resulted in cosmetic manufacturers to face on oversupplied market in the downstream cosmetic industries, thereby diminishing demand from domestic manufacturers. Even though the cosmetic sector witnessed a healthy recovery in the first week of the second quarter of 2023, the demand from other downstream sectors, such candle manufacturing, adhesive and paint industries remained largely negligible, amidst the recorded inflation of almost 4%. Moreover, the drop in the prices of crude oil along with subsidized energy costs (intended to cool inflation) aided in the decrement of production costs and the increment of operation rates, in the already oversupplied market. Supply remained considerably well owing to the cheap imports from Asia in the cosmetic industry, whereas demand was initially recorded to be high from the cosmetic industry, despite inflation on poor economic recovery, but later declined due to increment in the interest rates by about 5%, which casted a negative outlook on the purchasing sentiments on downstream industry. Prices of paraffin wax were recorded to be USD 1989/MT CFR Houston at the end of June 2023.
APAC
The market for paraffin wax experienced a mixed situation in the Asian market, that is being bullish at the commencement of the second quarter of 2023, and then being bearish towards the end. Overall prices witnessed a marginal depreciation of 2%. The increment of prices in the beginning of April was largely attributed to the surge of crude oil prices all over Asia. The Asian cosmetic industry witnessed a strong revival which in turn led to increased demand of paraffin wax and casted a positive outlook on the market sentiments of traders and distributors of paraffin wax who had started procurement. This led to the shortage of inventories in the beginning of April 2023, thereby driving up prices. However, towards the middle and end of the second quarter, the drop in the prices of crude oil eased production costs. Also, a slow economic recovery with an inflation rate recorded at an approximation of 3% in Asia cast a negative outlook on market sentiments, thereby diminishing purchasing activities. Also, the demand from other downstream sectors such as candle manufacturing and coating industry showed no improvements. This led to demand stagnating in the face of improving supply which resulted in the overall depreciation of prices. The prices of paraffin, after declining were recorded to be USD 1576/MT Spot Ex-Busan at the end of June 2023.
Europe
The overall market situation for paraffin wax in Europe has been witnessing a declining demand as the cosmetic industry in Europe transitions to more natural and ecofriendly forms of wax such as beeswax and polyethylene wax which were found to be less detrimental for human skin applications in contrast to paraffin wax. The prime demands are attributed to candle making and paper coating industries. Supply in the European region was recorded to be normal during this quarter, even though disruptions due to labour strikes at the ports had a negative impact on the supply chain. However, the prices of paraffin wax are further expected to decline as interest rates in the region increase in addition to the falling PMI and worries of the European economy entering recession. Overall, these factors contribute to the situation where cheaper imports from Asia face an underutilization of the piled-up inventory which can further depreciate the price of paraffin wax. Prices of paraffin wax were assed to be USD 1137/MT CFR Gdansk.
For the Quarter Ending March 2023
North America
The Paraffin Wax prices were impacted by the low demand from the downstream cosmetic industry and high stock volumes in the quarter ending March 2023 and maintained an overall southward price trend. Low-cost international supply and inadequate domestic demand continued to influence the dynamics of U.S. Paraffin wax prices this quarter. The drop in Paraffin Wax prices was further supported by the textile industry's and other competitive industries' unaltered purchasing plans for the commodity in the U.S. market. While import costs were declining, the paraffin wax enterprises also experienced competitive pressure from the domestic U.S. market due to excessive stock levels. In Addition, the Paraffin Wax market witnessed provoking production uncertainties due to the announcement of production cuts by OPEC at the termination of March 2023 in the U.S. market.
APAC
In the quarter ending in March 2023, the Paraffin Wax prices fluctuated very slightly due to the variable nature of upstream crude oil prices. The market participants displayed a wait-and-see attitude in the middle of China's economic outlook's steady improvement. Additionally, the absence of downstream demand from the cosmetics industry affected the price of Paraffin Wax in the APAC market throughout the first quarter of 2023. The beginning of Q1 2023 saw a decline in economic activity and a slowdown in trading operations in Asia due to the Chinese lunar new year's vacations and the lingering effects of COVID-related market disruptions. Due to the nation's slow economic recovery, market participants destocked inventories at lower margins impacting the final discussion of the product in the first quarter of 2023.
Europe
The Paraffin Wax pricing trend in the European market remained low throughout the first quarter of 2023, backed by the low production cost pressure as manufacturing costs in the exporting countries remained consistent. Production dropped in the producing nations as a result of delays in shipments caused by strikes in the European Union and tempered consumer demand mood. Additionally, the product offtakes by downstream producers remained moderate in the first quarter of 2023. Due to rising inflation and insufficient economic growth, players in the European market were limited to trading during the first quarter of 2023 solely for the purchase of basics. European businesses saw the impact of OPEC's announcement that the supply of crude oil will be reduced by the end of March 2023, which also affected the April discussions for Paraffin Wax.
For the Quarter Ending December 2022
North America
The prices of Paraffin Wax showed a dip in the quarter ending December 2022, and the bearish market for Paraffin Wax resulted from the constrained cosmetics industry demand in the North American region. The uncertainty in the crude oil prices during Q4 and diminished market activity for Paraffin Wax in the last quarter of 2022 affected the pricing dynamics of the commodity. The recessionary fears in the US market and the abundant supplies weighed on the domestic offtakes in the downstream sector this quarter. Therefore, the price of Paraffin Wax Fully Refined hovered around USD 2139/MT CFR Houston (USA) in December 2022.
APAC
The Paraffin Wax price showcased an overall downward trend in the APAC region during the quarter ending December 2022. The consistency in the production due to the subsequent reduction in the upstream cost pressure amid eased crude oil values conclusively led to a drop in the values of the commodity. Additionally, the COVID lockdown disruptions and interruptions in the cargo momentum also diminished the market participation of Paraffin wax in the downstream Cosmetics sector of the Chinese market this quarter. Additionally, the recession in the international market and the truck driver strike in South Korea negatively affected overseas trade and shipping rates and elevated domestic inventory levels. Therefore, the spot price of Paraffin Wax (60-62) was assessed at USD 1593/MT Ex-Busan (South Korea) in December 2022.
Europe
Paraffin Wax prices witnessed lower values in the quarter ending December 2022 with a decline in domestic offtakes. Weakening demand due to high crude oil, soaring inflation, and a gloomy economic outlook weighed on the downstream demand across the regional market this quarter. Additionally, the Paraffin Wax market players remained cautious about the decreasing output in November and concerned about tightening economic conditions; however, they made offtakes at lower margins in fear of piling of stocks towards the end of the year. The market players remained concerned about tightening economic conditions and made sales at lower profit margins amidst the fear of piling stocks at the year's end.
For the Quarter Ending September 2022
North America
The Paraffin Wax's prices showed a plunging trend throughout Quarter 3 of 2022, backed by the weak domestic demand fundamentals from the downstream candle-making and cosmetics segment. Moreover, upstream crude oil price volatility and supply disturbances squeezed the output of the product during this Quarter amidst western sanctions on the Russian supply chain at the termination of July. Besides, Chinese port congestion against bad weather limited supplies to the USA of Paraffin Wax. In addition, US trade activities were disrupted in September 2022 due to the congestion at Felixstowe and Liverpool port due to a wage dispute. Thus, it affected the cargo momentum of the commodity during the Q3 of 2022 and squeezed the availability of inventories.
Asia Pacific
The Paraffin Wax price showed a downward trend in the Quarter ending September 2022, owing to the lower demand from the downstream industries and supply disruptions amidst Chinese Covid-19 lockdown disturbances. The weak demand from the cosmetics and the candle-making industry amid surplus inventory availability during this Quarter. The high inflation dampened the commodity's domestic offers, and enterprises made sales at lower margins to avoid piling up stocks. The South Korean, along with several APAC currency depletion against the US dollar, narrowed the economic growth during this time period. The price of Paraffin Wax CFR Busan (South Korea) was assessed at USD 1620/ton in September 2022.
Europe
In the third Quarter of 2022, the Paraffin Wax market in the European market observed an upward trend owing to the hampered production activities and crippled availability of stocks with the enterprises. On the demand side, market uncertainties dampened customer confidence within the region during this Quarter. The cut in the oil and natural gas supplies from Russia has led to an upward inflationary input costs pressure for the commodity in the European market. At the same time, the European players were seeking better offtakes amidst the port congestion and worker shortage. As a ripple effect, the discussions for the Parrafin Wax in the European market in the third Quarter of 2022 were moderate to high.
For the Quarter Ending June 2022
North America
The Paraffin Wax market in the North American region staggered upwards in the first half of the quarter amidst adequate cost support from the rising upstream Crude Oil in the international market. In addition, the demand remains dull in the lubricants industry, although the market players from the personal care and cosmetics industries. The rising inquiries for the finished lubricants from the European region uplifted the sentiments in the domestic market. As a ripple effect, the discussions for the Paraffin Wax in the North American region observed an increment of +2.36% in the last month of the second quarter.
Asia Pacific
During the second quarter of 2022, the Paraffin Wax market in the Asia Pacific region observed mixed sentiments. In the first half of the quarter, the overall market remained stagnant amidst the rise in Crude Oil prices. Whereas the producers also curtailed the supplies to maintain the optimum netbacks as the ongoing COVID restriction in China significantly impacted the overall demand for Paraffin Wax in China. In the second half, the Chinese authorities eased the COVID restrictions and increased operating rates at the enterprises and the supply of Paraffin Wax in the Chinese domestic market. Against the inadequate demand on the domestic front leading to a sudden plunge in the offers besides a slight rise on occasions for Paraffin Wax in the Northeast region.
Europe
In the second quarter of 2022, the Paraffin Wax market in the European market observed a consistent plunge in terms of demand throughout the quarter. The retaliatory sanctions on the Russian energy supplies and the decision to embargo Russian Crude supplies resulted in extreme inflation and slower demand in the European domestic market. At the same time, the European players were seeking the finished Lubricants rather than producing amidst the offseason and holidays. As a ripple effect, the discussions for the Parrafin Wax in the European market plunge in the second quarter of 2022.
For the Quarter Ending March 2022
North America
Paraffin wax prices increased throughout the first quarter of 2022 in the North American market. Demand remained stable from downstream paper and agriculture industry. However, strong offtakes due to consistent demand from the cosmetics and pharmaceutical segments till the end of the quarter escalated the values. In March, reduced supplies from Asian countries due to global supply chain disruption and increased upstream crude oil values boosted Paraffin wax prices in the international market. Paraffin wax CFR prices settled at USD 2250 per MT in the end of Q1 2022 in North America.
Asia Pacific
Paraffin Wax prices remained strong in the Asian market throughout Q1, 2022. In Q1, high upstream crude oil values impacted the production cost of Paraffin wax, especially in March amid the tensions between Russia and Ukraine. Supply chain disruption and increased crude oil values caused shortage in supplies to the importing countries from China. In the Indian market, values remained stagnant in the first half and increased slightly during second half amid the uncertain supplies of crude and Paraffin Wax. Paraffin Wax discussions settled at USD 1650 /MT on FOB basis in China.
Europe
In the European market, Paraffin Wax prices remained high throughout the 1st quarter of 2022. The values rose consistently throughout the period due to continuous rise in the freight rates in the European region and increased manufacturing cost of Paraffin wax prices in China. The offtakes remained strong, and the demand for Paraffin wax remained consistent from the downstream cosmetic industry during winter. However, the demand from the food industry remained sluggish. In March, the prices of paraffin wax escalated significantly in the 2nd half of Q1 by over 7% due to uncertainty in supplies of materials amid the crisis in the East- European region.
For the Quarter Ending December 2021
North America
In Q4 2021, Paraffin Wax prices traced an upward trajectory in North America backed by the tight supplies of the product due to the lower imports from China. Moreover, as Paraffin Wax is a petrochemical product thus, volatility in the prices of Crude oil directly influenced its pricing trend. Additionally, a sturdy demand from the downstream Cosmetics, Coatings, Adhesives, and other sectors was seen in this timeframe that aided the hike in Paraffin Wax prices. Hence, Paraffin wax fully refined CFR Houston monthly average prices stood at USD 1950/MT witnessing a hike of USD 215/MT since October.
Asia
In Asia, Paraffin Wax market experienced an upward rally during the fourth quarter of 2021. In China, the prices of Paraffin Wax soared due to high production cost backed of extreme energy crises and volatility in the crude oil values. In India, a significant rise in the prices of Paraffin Wax was witnessed as there was a proliferative rise in all the commodities that are imported from China. Moreover, in domestic market, firm demand and prevalent enquiries from downstream manufacturers also contributed to the hike in the cost of the product. Hence, Indian Paraffin prices experienced an upward trend throughout the quarter and Paraffin Wax 60-62 EX Depot Delhi NCR prices stood at USD 1940.13/MT in December showcasing a hike of 11.5% since October.
Europe
In Europe, Paraffin Wax market appeared to be bullish backed by the limited availability of the product and robust demand from the downstream Cosmetics manufacturers during the fourth quarter. Furthermore, lower and delayed imports from the Asian countries specially China due to curtailment in the production process in effect of energy crisis as well as container shortage led to increment in the values of Paraffin Wax in this timeframe.
For the Quarter Ending September 2021
North America
The North American Paraffine Wax prices witnessed an uptrend in the third quarter of 2021. The demand for Paraffin Wax from the downstream industries such as flexible packaging in personal care, pharmaceuticals, and the food & beverage industry surged due to a steady recovery of US economy to pre pandemic levels. Volatility in the prices of upstream crude oil led to an increase in prices of Paraffin Wax. Supply was tight during the hurricane season as refineries on the gulf coast were forced shut. Refinery restarts during the closing weeks of Q3 meant that supply will ease up going into the next quarter and will likely stabilize the prices.
Asia
Asian Paraffin wax prices were on a constant uptrend throughout Q3 buoyed by the cost of upstream crude oil and a firm demand from the end user industries. Chinese Paraffin Wax prices increased in the backdrop of a surge in demand from the domestic as well as international markets. Supply remained tight due to a combination of lower refinery run rates, an impending energy crisis as well as supply chain bottlenecks caused by a congestion at Chinese ports owing to strict covid-19 containment protocols. In India Paraffin Wax prices witnessed an uptrend as demand surpassed supply throughout Q3. Moreover, Paraffin Wax manufacturers looking forward the expected hike in its demand owing to the upcoming festive season revised its prices to have maximum benefits. Paraffin Wax (60-62) Ex-Mumbai prices settled at 1441.65 USD/MT in September up by 124.08 USD/MT since July.
Europe
The European Paraffin Wax market remained tight during the third quarter of 2021 owing to delayed imports from the US and Chinese markets. The hurricane season in US and persistent congestion at Chinese ports meant that supplies of paraffin wax were hard to come by during Q3. In addition, lower refinery run rates due to a crisis in critical energy markets led to an increase in the prices of the paraffin wax. Demand remained strong from the candles, coatings, and packaging industries. Soaring sea freight charges and limited availability of shipping containers added further upward pressure on the prices during Q3.
For the Quarter Ending June 2021
North America
Prices of Paraffine Wax remained in a narrow range during this quarter across North America region, backed by high inventory levels. Due to the polar storm in last quarter, production of Paraffin Wax remained low in the country. However, availability remained abundant to tackle any demand from downstream cosmetics and candle manufacturers. Despite of slow refinery rate, older stocks was so abundant that led to an overall slump in the prices of Paraffin Wax in the country. Therefore, price of Paraffin wax tumbled effectively settling at around USD 1355/MT for light grade in Texas.
Asia
Paraffin wax prices varied with country over country in Asia during this quarter. In China, prices traced an upward trajectory due to sturdy domestic and cross border demand against the tight supply. While in India, after April, prices started declining in effect of rapid upsurge in pandemic cases in the country. To curb the spread country-imposed movement restrictions, which plunged the overall demand from cosmetic market. Therefore, prices of Paraffin Wax declined in India and climbed up in China, and eventually reached USD 1283/MT and USD 1307/MT respectively for India and China during end of June.
Europe
Europe experienced an overall stability in Paraffin Wax market, while the demand remained steady throughout the quarter. Post decline in COVID pandemic in major European economies, demand for Paraffin Wax started rebounding from regional cosmetic, candle, and coating sector. However, stocks remained abundant to satisfy the overall requirement of the market, which led to an overall stability in prices while facing some fluctuations under demand supply gap.
For the Quarter Ending March 2021
Asia
In line with the rise in demand from downstream industries, Asian paraffin wax market witnessed a fair recovery during Q1 2021. This demand for Paraffin wax remained stable till January, which later during February and March observed a further pickup due to significant recovery in service sector. This improved demand mainly came from cosmetics, packaging and candles making segments which enhanced the market sentiments and hence supported the prices of Paraffin wax in Asian market. Accordingly, CFR India prices for Paraffin wax rose from USD 1046 per MT (January 2021) to USD 1095 per MT (March 2021). Meanwhile, Indian Oil Corporation announced to expand its Chennai refinery in collaboration with Chennai petroleum corporation ltd, which will cost around USD 4298.2 Million.
North America
North America region faced challenges to satisfy the demand for Paraffine wax during Q1 2021, although the demand remained below the expectations. The reason behind this fall was disrupted plant activities, due to winter storm in gulf during Q1 2021 and multiple plant shutdowns due to the spate of hurricanes in Q4 2020. Owing to the limited manufacturing activities, feedstock base oil prices skyrocketed during January and February, although improvement in manufacturing activities during March stopped this price acceleration across the region.
Europe
After months of stagnancy and depressed market, European paraffin wax witnessed a fair flight during Q1 2021. Construction and paper manufacturing sector improved by 4-5% compared to Q4 2020. Furthermore, with vaccination drives running in several European countries like UK and France, manufacturers remained optimistic regarding the demand for paraffin wax from downstream sectors in the near term. Meanwhile, during March end, Total dropped the plan to resume its France base oil production plant, due to low demand for feedstock Base Oil.
For the Quarter Ending December 2020
Asia
Festive season in Asia during final quarter of 2020, raised the demand of Paraffin wax from different sectors. Fairly improved demand of Paraffin wax from industries like cosmetics, packaging and candles enhanced the market sentiments and supported its prices. In India, CRF price of Paraffin wax were said to improve from USD 964.16/tonne in October to USD 997.27/tonne in December. Similarly, other Asian countries like China and Korea reported resilient demand for Paraffin wax post COVID-19 recovery. Improved crude oil values also supported the prices of Paraffin wax during Q4 2020 in the Asia pacific region.
North America
Amid fair recovery in industrial activities and businesses across the region, the demand of Paraffin wax from the packaging and cosmetic sector was moderately improved during Q4 2020. Although multiple refineries were kept on low capacities and many of them remained completely non operative, demand-supply situation seemed somewhat balanced during the quarter. In addition, Royal Dutch shell was heard closing its Louisiana refining facility due to malfunction, which is one of the largest facilities in USA. This shut down may have a significant impact on Paraffin wax supply across the region.
Europe
The European Paraffin wax market remained low on sales and experienced stable growth from the construction and paper manufacturing sector. Although the demand for Paraffin wax improved from cosmetic industries compared to prior quarter. Meanwhile, the COVID-19 restrictions affected the activities of multiple refining units and that reduced the overall availability of Paraffin wax which has already been dealing with slackening demand. On other hand, some countries like UK announced complete lockdown and implemented COVID-19 restrictions that induced the downward trend in demand fundamentals.
