13 August 2008 23:59 [Source: ICIS news]
LONDON (ICIS news)--The European paraffin wax (p-wax) market saw average price increases of €80/tonne ($119/tonne) across the board for August on tighter supply, buyers and sellers said on Wednesday.
Price hikes of up to €100/tonne from July were heard, but this was not widely confirmed.
Despite the fall in raw material costs, the lack of Chinese imports added to the shortage of product in ?xml:namespace>
Demand was also strong and it was expected to increase after the end of the holiday season in August, one trader said.
Accordingly, domestic prices for 52-54°C melt point grade were now at levels of €1,160-1,220/tonne FD (free delivered) NWE (northwest
Looking ahead to September, one producer announced that it was postponing planned hikes of €50-70/tonne in light of the falling price of crude.
Prices were expected to stabilise over the coming weeks, although there may still be an increase sometime in the next few months due to the approaching peak season, the source said.
P-wax buyers were expecting immediate price reductions in line with the falling value of crude oil. Sellers were adamant there could be no immediate change as the decrease in value would take time to filter through.
Common uses for paraffin wax include candles, corrugated boxes, waxed papers, frozen food cartons and wrappers.
($1 = €0.67)
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