Western vessels ‘structural change’ to semi-refined p-wax market

23 April 2014 16:39 Source:ICIS News

LONDON (ICIS)--Vessels bringing semi-refined paraffin wax from western Europe to the Polish market represent a structural change in the market, a source said on Wednesday.

The movement of western European product to the Polish and Lithuanian market began in Q1 this year with three vessels of around 2,000 tonnes, and a trader said another had supplied the market last week, with an additional two ships to arrive in May.

“There will be always vessels now,” the source said.

“After [May] we don’t know yet, but it will be a constant flow. I think it’s a major structural change. We have to buy some from Russia but [we have] to be very cautious because with [shipments], it will be a big change.”

Demand for semi-refined paraffin wax is unusually weak for the season, possibly due to buyers picking up volumes earlier in the season.

A spike in the demand for grave candles in the major Polish market around Easter usually increases demand for semi-refined paraffin wax - the raw material for this form of candle – between February and April.

Earlier this month, a Russian semi-refined paraffin wax trader said demand was weak because buyers still held product from January and February in storage - in part thanks to the vessels delivering product from western Europe.

By Richard Welbirg