Europe P-wax prices ease on slow demand and ready supply

23 July 2014 16:51 Source:ICIS News

LONDON (ICIS)--The European fully refined paraffin wax market is seeing slow activity and good availability, and prices are coming under pressure as a result, sources said on Wednesday.

While some consumers said there has been only a minimal impact on operations from the holiday season, most sources agreed that demand has decreased in July, and will likely remain relatively low through August.

Availability is high, with sellers heard to be pushing sales. Waxes with higher melting points were said by some to be the most oversupplied, and one buyer in Iberia said prices for higher melting point waxes are now lower than those of lower melting points. This was not heard from all sources, however, with several indicating that the price of wax with a melting point of 56-58 degrees is under the greatest pressure.

One supplier said it is has suffered reduced sales, not just as a result of holidays, but also in the competitive German and Polish markets, because its prices are too high. It will reduce its prices in August by €10-38/tonne, depending on melting point, with the greater reductions for the higher melting points.

Other suppliers have indicated similar moves for August, although not necessarily for all grades. However, some consumers said they are already being offered significantly lower prices. One such consumer said it had been offered fully refined waxes at prices 10% lower than the previously published ranges, although such drastically reduced prices were not heard elsewhere.

Fully refined paraffin wax prices for grades have been assessed as follows, according to melting point. 52-54 degrees: €1,080-1,140/tonne FD NWE, down €10/tonne; 56-58 degrees: €1,100-1,160/tonne FD NWE, down €40/tonne; 60-62 degrees: €1,240-1,290/tonne FD NWE, down €40/tonne.

By Ross Yeo