22 February 2013 12:47 [Source: ICIS news]
LONDON (ICIS)--The European slack wax market is starting to tighten because of cuts in European Group I base oil production, market sources said on Friday.
Speaking on the sidelines of the annual ICIS World Base Oils & Lubricants Conference in London, a west European wax distributor said it saw clear signs of slack wax market tightness, with buyers keen to secure March volumes.
“People are approaching us for slack wax for next month,” it said.
A different source confirmed there was a shortage of slack wax in the market because of base oil output cuts.
Unsatisfactory profit margins have seen many Group I base oil producers across Europe cut production rates.
Slack wax, a by-product of Group I base oils production, is a feedstock for paraffin wax.
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