06 March 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--Domestic paraffin wax prices have increased between €20-25/tonne ($26-32/tonne) this week, depending on melt point, supported by recent rises in upstream costs, market sources said on Wednesday.
A variety of factors were behind the rises, including reduced supply and higher paraffin wax replacement costs for sellers. However, higher upstream vacuum gasoil (VGO) costs during much of February were seen as the primary justification.
The paraffin wax price rises seen heading into March were more modest than some expected. Demand is most commonly described as normal to flat.
In addition, while certain sellers note that buyers expected higher prices this month, they felt substantial hikes would not be tolerated. With some sellers unwilling to risk their market share, more modest rises were seen.
“Paraffin wax is short, but we do not see prices going up rapidly,” said a west European distributor.
Domestic 52-54C melt point paraffin wax prices were assessed up €25/tonne at €1,090-1,130/tonne FD (free delivered) NWE (Northwest Europe). Domestic 56-58C wax was assessed up €20/tonne at €1,150-1,190/tonne FD NWE.
($1 = €0.77)
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