UAE Liquid Paraffin Prices Expected to Remain Under Pressure in July Amid Ample Supply

Liquid paraffin prices in the United Arab Emirates moved lower in June 2026 as market participants faced comfortable supply conditions and weaker purchasing activity. According to ChemAnalyst data, Heavy Liquid Paraffin (USP) CFR Jebel Ali spot references recorded a month-on-month decline of 0.65%, reflecting softer buying interest after seasonal inventory replenishment. The Liquid paraffin market remained under mild bearish pressure as exporters maintained stable production rates and consistent shipments, while sellers adjusted offers slightly to support sales volumes.

Supply fundamentals continued to influence the Liquid paraffin market during June. Major exporters operated steadily, with no significant production disruptions or refinery maintenance affecting regional availability. Regular shipment flows and sufficient inventories provided buyers with adequate supply options, reducing urgency for additional purchases. Although freight costs increased sharply during the month, stable logistics operations and continued export availability prevented supply tightening and limited the possibility of price recovery.

Demand across major Liquid paraffin consuming industries remained cautious throughout the period. The personal care and pharmaceutical sectors witnessed slower procurement after completing earlier inventory accumulation, resulting in buyers depending on existing stocks and limiting fresh purchases. Cosmetics manufacturers and industrial users maintained steady consumption levels but followed a need-based procurement approach. This moderate demand environment supported market stability but failed to create enough momentum for a price increase.

Looking ahead, the Liquid paraffin market is expected to remain slightly bearish in July 2026, with ChemAnalyst analysis indicating a possible downside of around 1.7% based on prevailing market conditions. Stable refinery operations, comfortable inventories, and routine purchasing patterns are likely to keep price movement under pressure. Upstream factors such as crude oil and base oil costs may provide some support to Liquid paraffin prices if they continue rising, while higher freight expenses and geopolitical risks remain key factors to monitor. Overall, the market outlook depends on supply availability, downstream demand recovery, feedstock trends, and logistics developments.