27 February 2013 16:29 [Source: ICIS news]
LONDON (ICIS)--European domestic paraffin wax prices look set to rise in March because of recent increases upstream, sources said on Wednesday.
Initial indications from the European domestic paraffin wax market suggest that prices will likely rise next month, with producers looking for hikes of up to €70/tonne ($91/tonne) on existing prices.
A variety of reasons are stated for the increases but firmer vacuum gasoil (VGO) prices upstream was the most common justification given.
VGO prices started February priced in the mid-$800s/tonne FOB (free on board) NWE (northwest Europe), but then rose to the high-$800s/tonne before softening late in the month.
Buyers will attempt to resist these hikes, but several concede increases are likely.
“I think we will see some increases because it is through the whole market,” said a northwest European paraffin wax buyer.
Clarification on what prices actually get agreed is expected next week.
($1 = €0.77)
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