03 October 2012 23:59 [Source: ICIS news]
(recasts, clarifying quote in seventh paragraph)
LONDON (ICIS)--European domestic paraffin wax prices have increased this week supported by a modest improvement in demand and recent price rises upstream, market sources said on Wednesday.
Seasonal demand from the candle industry is traditionally high during October, and according to most sources, paraffin wax offtake is rising.
“The season is finally running,” said a west European distributor.
Recent rises upstream in the vacuum gasoil (VGO) market and the increased cost of slack wax in September has also supported the move upwards.
However, the price rises confirmed by buyers fall some way short of those reported by producers and demand, while improving, remains below expectations for this time of year.
This is attributed to wider economic concerns.
52-54C melt point wax was assessed up €10-30/tonne ($13-39/tonne) to €1,090-1,130/tonne FD (free delivered) Northwest Europe (NWE), by ICIS.
Candle grade 56-58C melt point wax was assessed up €10-15/tonne to €1,240-1,280/tonne FD NWE.
($1 = €0.77)
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