Demand rising from low base as European p-wax market awakens

08 January 2014 17:55  [Source: ICIS news]

LONDON (ICIS)--End-user demand for fully-refined paraffin wax (p-wax) is rising from a low base as participants return slowly from the winter break, sources said on Wednesday.

One producer estimated demand was 25% below mid-December 2013 levels, but participants agreed it was picking up after the market largely shut down over the holiday period.

“We are recovering. The operators are starting working during these days. Slowly demand is coming back”, said one distributor.

The producer also saw demand exclusively for liquid product, suggesting larger candle makers have restarted production ahead of their smaller competitors, as the expensive infrastructure required to store liquid p-wax is unavailable to smaller users, who mostly buy slab form.

“The big candle factories started to revive candle production. That’s the reason why currently we only have liquid demand,” they said.

“You have to have heated tanks to be able to store the liquid product., they start up at the very beginning of the year. The smaller candle factor which are consuming solid material, they will take longer holiday.”

By: Richard Welbirg
+44 208 652 3214

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