US paraffin wax supplies tighten on strong demand

07 April 2011 19:00  [Source: ICIS news]

LAS VEGAS (ICIS)--Paraffin wax (p-wax) supplies in the US have tightened recently as demand has increasede in the candle and paper-packaging markets, sources said on Thursday.

Stronger demand from downstream markets has created shortness in supply of p-waxes with melt points of less than 150°F (66°C), a source said on the sidelines of the annual meeting of the National Candle Association in Las Vegas.

For the past several months, high-melt p-waxes, which exceed 150ºF, have been scarce, commanding premium prices.

A scarcity of mid-melts is starting to be seen, because of increased demand from candle makers, a source said.

The tight supply of mid-melt p-wax is creating opportunities for soy wax and other alternative waxes in the market.

Soy wax, which is commonly blended with p-wax in candle production, is trading at 82-86 cents/lb ($1,808-1,896/tonne, €1266-1,327/tonne). This range is within the current price range of 80-86 cents/lb for mid-melt p-wax.

($1 = €0.70)

By: Frank Zaworski
+1 713 525 2653

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