27 March 2013 16:27 [Source: ICIS news]
LONDON (ICIS)--European domestic paraffin wax prices are likely to hold steady heading into April amid a balanced market, sources said on Wednesday.
Although certain sellers will look for rises next month, other will not.
Moreover, buyers are expecting stable prices amid what are largely balanced conditions, despite ongoing production cuts in the related base oils market.
“People are talking about base oil production cuts and how this could impact paraffin wax, but until now I do not see anything,” said a northwest European paraffin wax buyer.
Last week, a west European buyer said it had already agreed stable 52-54C and 56-58C melt point prices for April.
By contrast, an eastern European producer said it would look to increase its prices by €20-30/tonne ($26-38/tonne) in April, supported by good demand.
However, the recent declines of vacuum gasoil (VGO) upstream have taken some steam out of the slack wax/paraffin wax market and will make it a challenge for producers to secure a second month of paraffin wax price increases in April.
Further confirmation on actual April prices is expected next week.
($1 = €0.78)
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