30 March 2011 16:47 [Source: ICIS news]
LONDON (ICIS)--Paraffin wax producers are proposing price increases of around 5% in Europe for April deliveries, market sources said Wednesday.
Some producers said that prices should rise even further to account for recent increases in the cost of feedstocks, particularly vacuum gasoil. But they acknowledged that wax demand in the first quarter had been insufficient to pass on higher costs to end users.
Buyers agreed that first-quarter demand had been sluggish, especially in the candle sector. They said that slight price increases for fully refined paraffin wax might be justified in April, but that the €50-80/tonne ($70-113/tonne) increases on offer were unreasonable.
Some suppliers were seeking increases of this magnitude from 1 April, and others were proposing increases that would take effect from 15 April.
ICIS quoted late-March prices for fully refined paraffin wax with a melt-point of 56-58C at €1,200-1,250/tonne FD (free delivered) NWE (northwest Europe).
Suppliers of slackwax, from which paraffin wax is refined, were also aiming to raise European prices by at least €50/tonne in April, from around €750/tonne FD NWE in March. Some buyers had already rejected offers of April deliveries at €800/tonne FD NWE.
($1 = €0.71)
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