23 January 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--Domestic paraffin wax prices look set to roll over heading into February because of balanced market conditions, sources said on Wednesday.
No sign of market tightness in either the slack wax or paraffin wax markets was reported, despite ongoing Group I base oil production cuts across Europe.
Unsatisfactory margins have seen rates reduced at numerous base oil plants, which will impact the amount of by-product slack wax produced.
However, to date, no supply concerns are consistently noted in the markets.
“It is quite balanced because there is enough material,” said a west European distributor.
Paraffin wax demand, and that of the candle sector downstream, is most commonly described as steady at a satisfactory level for the time of year.
The relative stability in feedstock markets is also supporting a domestic price rollover for February, sources said.
“The market is balanced. There is no real incentive to increase prices,” said a northwest European buyer.
Previously, talk of price reductions for February were heard in the market, but these were not confirmed by sources this week.
Domestic 52-54C melt point paraffin wax prices were assessed steady this week at €1,065-1,105/tonne ($1,420-1,473/tonne) FD (free delivered) NWE (northwest Europe), by ICIS.
($1 = €0.75)
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