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.
