Europe July p-wax rises €80-100/t on tight supply

09 July 2008 23:59  [Source: ICIS news]

LONDON (ICIS news)--European paraffin wax prices for July have firmed approximately €80-100/tonne ($125-156/tonne) from June on record crude values and tight supply, producers, consumers and traders said on Wednesday.

“We have seen prices firm by €80-100/tonne,” a producer confirmed. “We expected to see the same in August,” he added.

“Part of the push is crude oil, but China is the biggest base for p-wax production and rates have been reduced,” said a trader of Chinese material.

“China is very tight and I have seen p-wax prices firm three times in one week, it’s like a stock market now."

July domestic prices for 52-54C melt point grade were valued at €1,080-1,140/tonne FD (free delivered) NWE (northwest Europe), €1,160-1,220/tonne FD NWE for 56-58°C and €1,170-1,260/tonne FD NWE for 60-62°C, according to global chemical market intelligence service ICIS pricing.

Consumers confirmed that the market saw hefty gains in July because of crude and lack of availability.

“€80/tonne is the number and I am afraid another €100/tonne will come in August,” said one large consumer adding that "it was full-steam on demand in a tight market".

Despite the notable lack of spot business in the European p-wax market, a spot parcel of Asian material was heard on offer ex-tank, out of either Rotterdam or Hamburg at $2,000/tonne. “There is a lot of interest for this parcel,” a buyer said.

A 5,000-6,000 tonne spot parcel was heard arriving from China to Moerdijk, the Netherlands, but a trader said that "it’s all been sold on paper".

Common uses for p-wax include corrugated boxes, waxed papers, frozen food cartons and wrappers.

($1 = €0.64)

For more on p-wax visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Staff Reporter
+44 20 8652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly