26 June 2013 17:28 [Source: ICIS news]
LONDON (ICIS)--European domestic paraffin wax prices look set to remain steady moving from June to July because of balanced market fundamentals, sources said on Wednesday.
Domestic 52-54C melt point prices in June were at €1,080-1,120/tonne ($1,421-1,475/tonne) FD (free delivered) NWE, with domestic 60-62C melt point at €1,300-1,340/tonne FD (free delivered) NWE (northwest Europe).
“We are not producing much and don’t see much change for July, maybe prices might move down €5-10/tonne. Some companies will close for the summer period, but we are hoping that everybody will come back to the market in September,” said a producer source.
A distributor of paraffin wax also did not expect to see too much change in prices moving from June to July.
“The general direction will be roll over for July. There are different opinions for price levels in the coming month - producers pushing for higher prices and buyers want lower prices.
“We are in the middle and the market is more or less stable. We are not in the peak season and there is no oversupply so there is no reason to increase prices,” the distributor said.
Regarding slack wax, one producer described its position as “sold-out”.
“Demand is very healthy and we are sold out every month. Slack is becoming tighter and tighter because of the closure of some refiners and Group I base oils,” the slack wax producer said.
($1 = €0.76)
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