10 July 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--The European domestic paraffin wax market recorded some slight decreases for July, however the market remains quiet with limited demand, sources said on Wednesday.
Most domestic grades saw a rollover in prices, however some length in supply of the higher melt point grades resulted in decreases.
Buyers and sellers were in agreement that there was some length to the higher melt point market, with more offers seen and producers talking of lower prices.
Prices for 56-58C melt point product was €10/tonne ($13/tonne) lower at €1,130-1,170/tonne FD (free-delivered) NWE (northwest Europe). Melt point 60-62C also saw a slight decrease with prices at €1,290-1,330/tonne FD NWE.
The remainder of domestic prices were unchanged, with the European summer holidays taking participants out of the market, and with slowdowns and temporary closures occurring.
Producers said they were mostly unwilling to lower prices to lure buyers, despite the slump in demand.
The recent increase in vacuum gasoil prices was also cited as reasons to maintain current pricing levels.
Some participants felt high inventory levels from quarter two consignments were also keeping buyers out of the market.
The market is expected to remain quiet for most of July, with some built up in activity expected in early August as participants start preparing for the traditional busy season of autumn.
($1 = €0.78)
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