ExxonMobil lifts US wax prices 4 cts/lb

23 June 2008 19:21  [Source: ICIS news]

HOUSTON (ICIS news)--US paraffin wax (p-wax) producer ExxonMobil raised its prices by 4 cents/lb ($88/tonne) on Monday, buyers said.

US p-wax buyers have received more price increases in 2008 than ever before, a buyer said, adding that the hikes were mostly driven by strengthening feedstock vacuum gas oil (VGO) values and trouble in the base oil sector.

Calumet announced a 4 cent/lb hike on all grades of wax on 20 June. IGI was out with a hike of 2-7 cents/lb for 11 July, buyers said. And Sunoco has announced a 7 cent/lb hike on slackwax.

US producers have announced on average 1-2 hikes each month, depending on supplier and type of wax, since February.

In 2007, p-wax prices only changed about three times, a buyer said.

Spot prices for fully refined p-wax with melt point  125-140° Fahrenheit (52-60° Celsius) were 76.40-78.70 cents/lb ($1,684-1,737/tonne, €1,078-1,113/tonne) free on board (FOB) US Gulf, according to global chemical market intelligence service ICIS pricing.

Deals for fully refined p-wax with a higher melt point were completed at prices higher than 80 cents/lb, and offers for July were in the mid 80s cents/lb, a trader said.

US base oils and wax producer CITGO confirmed last week it would cease production at its Lake Charles lube and wax plant in Louisiana prior to year end.

The news had many buyers scrambling to secure supply, buyers and sellers said.

($1 = €0.64)

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By: Heather McGuire Doyle
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