Europe candle grade wax prices down on oversupply

LONDON (ICIS)–Fully refined paraffin wax prices have decreased in November because of ongoing oversupply and high volumes of imports from China, buyers said on Wednesday.

The buyers were referring to wax refined to highest degree, with an oil content of less than 0.1%, known as candle grade.

In addition to the high availability, one buyer pointed out that most consumers have already covered their feedstock needs for the rest of the season, and so there is very little fresh demand.

With inventories full and domestic production still running – largely driven by base oil economics – producers are getting nervous about the growing supplies and are offering discounts in order to shift volumes.

The discounts were heard at €30-40/tonne for material with a melting point of 56-58 degrees. Prices are assessed at €1,035-1,095/tonne FD (free delivered) NWE (northwest Europe), down €30/tonne.