For the Quarter Ending March 2025
North America
During the first quarter of 2025, the North American paraffin wax market experienced a modest decline, with prices concluding March at approximately USD 1,378 per metric ton. This downward trend was primarily influenced by evolving consumer preferences and ample supply conditions. On the supply side, the U.S. market remained well-stocked, supported by stable production levels and efficient logistics. The absence of significant supply chain disruptions ensured consistent availability, contributing to a balanced market environment. In terms of demand, the candle-making sector, a major consumer of paraffin wax, maintained steady consumption, particularly for scented and decorative candles.
However, the cosmetics industry, another key end-user, reported subdued demand. This was attributed to changing consumer preferences and increased competition from bio-based wax alternatives, such as soy and beeswax, reflecting a growing emphasis on sustainability and environmental concerns among consumers.
Overall, the interplay between stable supply conditions and shifting demand dynamics, particularly the move towards eco-friendly alternatives, contributed to the observed price trends in the North American paraffin wax market during Q1 2025.
APAC
The Asian Paraffin Wax market exhibited divergent trends during Q1 2025, reflecting region-specific demand dynamics and supply conditions. In China, prices experienced a modest uptick, primarily driven by firm domestic demand during the first half of the quarter, coinciding with Lunar New Year festivities. This seasonal uplift in consumer activity supported increased consumption, particularly in sectors such as packaging and decorative candle manufacturing. Additionally, fluctuating crude oil prices exerted upward pressure on production costs, contributing to the price rise. Conversely, the Indian paraffin wax market witnessed a modest downturn during the same period. Major domestic producers such as Indian Oil Corporation Limited (IOCL) and Numaligarh Refinery Limited (NRL) operated at stable production rates, ensuring sufficient supply across the market. However, demand from key downstream sectors, notably candle making and cosmetics, remained subdued due to weak consumer sentiment and competition from bio-based alternatives. Overall, the paraffin wax market in Asia during Q1 2025 was characterized by regionally distinct price movements, shaped by domestic consumption patterns, seasonal factors, and fluctuating feedstock costs.
Europe
The European Paraffin Wax market witnessed a modest price uptick throughout the first quarter of 2025, driven by a combination of logistical disruptions and steady downstream demand. Persistent port strikes, labor shortages, and ongoing port congestion across several key entry points significantly curtailed the availability of imported material. These challenges led to a temporary imbalance in the market, tightening domestic supply and fueling price volatility. Notably, port yard occupancy reached critical levels, reportedly nearing 82%, which further hindered smooth cargo movement. Despite these logistical headwinds, demand from core end-user industries such as candle manufacturing and cosmetics remained stable. Seasonal restocking activities, particularly in anticipation of the Munich festival, bolstered orders for decorative and scented candles. Additionally, forecasts of an early heatwave spurred increased demand for skincare products, further supporting paraffin wax consumption in the region. The combined effect of constrained supply and consistent demand resulted in a widened supply-demand gap, ultimately contributing to the upward price trend observed in the European Paraffin Wax market during Q1 2025.
For the Quarter Ending December 2024
North America
In Q4 2024, the North American Paraffin Wax market was characterized by bearish sentiment. Prices declined primarily due to eased freight charges and an increased surplus of Paraffin Wax. Stockpiling efforts, along with ongoing port congestion in China, led to higher inventory levels. However, weak demand from key downstream sectors, particularly cosmetics and candle-making, exerted downward pressure on prices. The cosmetics sector, in particular, struggled with shifting consumer preferences towards more eco-friendly alternatives and economic challenges that hindered discretionary spending.
Despite proactive measures taken by traders to secure supplies, demand remained subdued throughout the quarter. Additionally, logistical issues, including persistent port congestion and the threat of labor strikes, further exacerbated market instability.
As a result, the market experienced volatility with fluctuating prices, but overall, the sentiment remained slightly bearish. These combined factors of weak demand, logistical disruptions, and shifting consumer behaviors contributed to a challenging market environment for Paraffin Wax in North America during Q4 2024.
Asia-Pacific
The price of Asian Paraffin Wax remained volatile throughout Q4 2024, with a surge observed in both the beginning and end of the quarter, though November saw a slight month-on-month dip. The surge in prices can be attributed to strong demand in anticipation of the festive season, including Lunar New Year in Asia and Christmas and New Year festivities in Western markets. These events drove demand from key sectors such as cosmetics and candle-making. Additionally, consumer spending in China showed significant growth in the third quarter of 2024, particularly in the fast-moving consumer goods (FMCG) and technology sectors, with expectations of continued growth in Q4, further supporting Paraffin Wax demand. However, the volatility in Crude Oil prices, influenced by global uncertainties, resulted in increased production costs, adding to the price pressure. The November dip was attributed to a combination of more favorable input costs and a slight improvement in manufacturing activity. Despite the temporary drop, the overall price trend in Q4 remained influenced by robust demand and fluctuating feedstock costs, which kept the market relatively volatile.
Europe
In the European Paraffin Wax market, Q4 2024 saw notable price volatility. Initially, prices declined due to eased freight charges and a surplus of Paraffin Wax, with stockpiling efforts and port congestion in China resulting in higher inventory levels. Despite this, weak demand from key downstream sectors, particularly cosmetics and candle-making, exerted downward pressure on prices. However, as the quarter entered its final month, prices saw a modest increase, driven by anticipated festive season demand. On the supply side, Northern European ports, including Rotterdam, Antwerp, Hamburg, and Southampton, reported high berth occupancy rates and docking delays of up to four days. Mediterranean ports also faced worsening conditions, exacerbating supply chain disruptions and limiting the availability of imported Paraffin Wax. These logistical challenges further strained the market, preventing smooth supply flow. The price dynamics in Q4 2024 were shaped by the combination of weak demand, supply chain disruptions, and the impact of seasonal demand, leading to a volatile market for Paraffin Wax.
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.
