China P-wax rises $20-30/t on high feedstock

05 June 2008 06:50  [Source: ICIS news]

SINGAPORE (ICIS news)--Chinese paraffin wax (P-wax) prices have risen $20-30/tonne (€13-19.5/tonne) in the first week of June for the benchmark 58/60°C fully refined solid wax on tight supply and high feedstock costs, sellers and buyers said on Thursday.

Prices were assessed at $1,560-1,590/tonne FOB (free on board) China.

The semi-refined 58/60°C grade was pegged at $1,550-1,580/tonne FOB China and the slackwax bulk liquid was at $800-900/tonne FOB Asia, according to global chemical market intelligence service ICIS pricing.

Many refineries had scheduled long maintenances citing reduced profits due to record high crude values, which were exerting upward pressure on wax prices, a producer said.

A China-based trader added that the high prices of the 58/60°C fully refined solid wax had made it difficult for them to cover their costs. 

"The candle business is really going to go up in flames and turn to ashes," he added.

P-wax producers include PetroChina, Sinopec and Pertamina. P-wax is used in the production of candles, and in the food packaging and petroleum jelly industries.

($1 = €0.65)

By: Heng Hui
+65 6780 4359

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