Paraffin Wax prices were kept under continuous pressure in global markets throughout the week ending on May 23. A combination of factors fueled the bearish sentiment, with feedstock prices continuing to decline. Moreover, constant changes in international trade policies, such as tariff revisions and geopolitical tensions, created market hesitation among traders. Adding to this gloom, demand from major downstream industries such as candle-making, packaging, and cosmetics was weak because of muted consumer spending and economic pressures.

In China, the Chinese Paraffin Wax price experienced a modest drop, after a brief period of relative stability that had been seen during the last week. This southward trend was partly caused by a minor decline in the price of the major feedstock, Crude Oil, which resulted in reduced costs of production and hence put bearish pressure on Paraffin Wax prices. Moreover, market sentiment could have been affected by the easing of Sino-U.S. economic and trade tensions. Nonetheless, total demand from downstream sectors was still weak, largely because of ongoing worldwide economic uncertainties, which also supported the downtrend in pricing.

Likewise, on the North American front, the imported paraffin wax prices on the U.S. market saw a sharp drop in the current week, a sharp contrast to the relative calm evident in the last week. This decline is largely due to traders taking a defensive position with regular fluctuations in tariff policies, The ambiguity revolving around these trade measures has resulted in caution in procurement processes. Also, demand for Paraffin Wax from major downstream industries, including candle production and cosmetics, remains subdued, further contributing to the downward pressure on prices. The synergy of policy-driven market uncertainty and tepid end-user demand has played a role in the prevailing price weakness in the U.S. import market for paraffin wax.

Additionally, in the European market, prices for paraffin wax saw a sharp drop in mid-May 2025, mainly owing to the expectation of higher Chinese imports. Even as U.S.-China trade tensions temporarily eased, Chinese vendors aggressively cut their offers to European customers in an effort to pass volumes on before tariffs would resume. European manufacturers initially kept prices stable but later had to undergo downward corrections to different grades. The market also expects further softness as additional Chinese cargoes are set to reach the shores in June, which may interfere with the equilibrium between local Paraffin Wax supply and demand.

As per ChemAnalyst analysis, the price of Paraffin Wax is expected to move southwards further.  This price decline is attributed to a variety of factors including expected subdued activities amidst economic uncertainties.