08 May 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European domestic paraffin wax prices have declined by between €10/tonne and €20/tonne in May, because of various factors including low demand, market sources said on Wednesday.
Absolute values in the market showed a decrease, but a mixture of competing factors meant the market was searching for clear price direction, with some talk of price stability also evident.
In addition, it is the low demand season for candles and competitively priced palm wax, a possible alternative to paraffin wax for certain applications, has led to some substitution by customers.
However, recent production cuts in the related base oils market has meant there is no paraffin wax oversupply.
“It is quite balanced when we talk about supply and demand,” said a west European distributor.
Moreover, certain producers said their specifications meant palm wax was not a real competitor and that offtake remained fairly healthy.
Domestic 52-54C melt point prices were assessed down by €10/tonne to €1,080-1,120/tonne FD (free delivered) NWE (northwest Europe), by ICIS this week.
Domestic 60-62C melt point wax was assessed down €20/tonne to €1,300-1,340/tonne FD NWE.
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