27 September 2012 17:36 [Source: ICIS news]
HOUSTON (ICIS)--US fully refined paraffin wax (p-wax) spot prices have increased by 3 cents/lb ($66/tonne, €52/tonne), according to ICIS pricing on Thursday.
At least two US producers have announced increases of 3 cents/lb across a broad array of p-wax products.
P-wax spot prices are assessed at $1,576-1,708/tonne FOB (free on board) US Gulf for mid-melts (125-140°F, 52-60°C), and $1,763-1,896/tonne FOB US Gulf for high-melts (150°F and above).
ExxonMobil was said by sources to have increased p-wax prices by 3 cents/lb across its product line-up, effective 2 October.
Calumet Specialty Products last week announced increases of 3 cents/lb on most of its products, effective 28 September.
Other p-wax suppliers indicated that they are considering similar price increases, sources said.
The price increases are the first official price moves seen in the market since April of this year, and they come on the heels of recent price increases for Group I base oils.
A p-wax seller said the increases reflect recent increases in prices for crude oil and base oils, adding that price support is coming from improving demand for candle making and the production of construction materials such as wallboard.
A p-wax buyer for candle making indicated doubt as to whether the p-wax price increases would stick, since there is lacklustre demand for candles, and prices of alternatives such as palm wax and soy have declined.
($1 = €0.78)
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