05 September 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--European domestic paraffin wax prices held steady this week because of competition among sellers, despite high feedstock costs, market sources said on Wednesday.
Most market sources saw stable prices, despite the attempts of certain producers to increase domestic prices heading into September and the start of the traditional high paraffin wax season.
Ongoing firm vacuum gasoil (VGO) and crude oil markets upstream supported the producers’ stance, but in the absence of a unified push for increases by all, price stability was secured by several wax buyers.
Certain sellers did not target higher prices, because of the lower prices on offer from competitors.
“There is too much product around at a cheaper price. I did not want to lose out,” explained a west European distributor, which kept its candle grade 56-58C melt point paraffin wax prices unchanged at €1,200-1,250/tonne ($1,199-1,563/tonne) ex-tank Rotterdam for September.
Buyers and sellers note signs of a seasonal improvement in demand, but no suggestion of a notable rise in offtake.
Candle grade 56-58C melt point paraffin wax prices were assessed unchanged at €1,230-1,265/tonne FD (free delivered) NWE (northwest Europe) by ICIS.
($1 = €0.80)
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