Mixed views on likely domestic paraffin wax prices for May

24 April 2013 17:10  [Source: ICIS news]

LONDON (ICIS)--Opinions are mixed regarding the likely direction of domestic paraffin wax pricing in May, with both stability and declines indicated, market sources said on Wednesday.

While some sources expect price stability because of balanced market conditions, certain buyers will look for reductions because of the recent declines in vacuum gasoil (VGO) and crude oil upstream.

One paraffin wax buyer said it had already achieved a reduction from one of its suppliers for May and expected further declines from its others suppliers.

By contrast, a different buyer predicted price stability for its fully-refined domestic values in May.

While recent declines upstream should see slack wax and semi-refined wax values ease next month because of formula agreements, it did not predict any impact on fully-refined grades in the short term.

“For next month, I do not expect it [a reduction], but in the long term, I do expect it,” it said.

Further clarity is expected in the coming weeks as more agreements are finalised.

 ($1 = €0.77)

By: Carl Roache
+44 20 8652 3214

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