14 June 2012 07:32 [Source: ICIS news]
By Jasmine Khoo
SINGAPORE (ICIS)--Spot paraffin wax prices in Asia may continue to fall, in tandem with values of palm wax – a widely used substitute material in making candles – amid weakness in the regional crude palm oil (CPO) futures markets, industry sources said on Thursday.
In the week ended 13 June, spot parrafin wax was assessed at $1,350-1,400/tonne (€1,080-1,120/tonne) FOB (free on board) ?xml:namespace>
Palm wax is currently cheaper at $1,000-1,100/tonne FOB
Candle makers in southeast Asia – where the palm oil industry is robust – have started switching to cheaper palm wax, further reducing demand for paraffin wax.
“Approximately 90% of the candle makers in
Palm wax is a CPO derivative that is produced by either chilling and spinning, or hydrogenating steam distilled palm oil, without using any non-organic substances.
CPO prices have been on a downtrend since April this year, shedding almost 20%. At 13:11
Players in the Asian paraffin wax market are also opting to stay on the sidelines, expecting prices to fall further, amid the eurozone debt crisis and a slowdown in the Chinese economy.
In other parts of
($1 = €0.80 / $1 = M$3.18)
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
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Asian Chemical Connections