October market of Paraffin Wax and the Prediction

1. Price in Oct

On 1st Oct,

* Semi refined paraffin wax and slack wax was decreased by USD65/MT.  

* Fully refined paraffin wax has no change.

* Price of Semi refined wax was adjusted up in the end of Oct

31 Oct, up by USD28/mt

5 Nov, up by USD8/mt

2. Supply in Oct

* Supply is sufficient for general grades of FR58, FR56 and SR58.

* For F60,F64, F54, supply is shortage for most quantity from Dalian refinery.  

* The average production quantity is about 140,000mt per month.

In Oct, the production quantity was predicted 133,000mt -- ( reduction refers to Dalian refinery shutdown)

3. Demand in Oct

* In Sep and Oct, it was the hot season for abroad market of paraffin wax.  

* The sea freights had decreased in October,  especially to USA and Europe, the deceasing level was big that stimulated the purchase and export in the end of Oct.

4. Prediction for market in Nov and Dec.

① Sea freight was up again in Nov. and may last to the end of Nov.

a. Shipping companies are controlling shipping space, diverting certain voyages back to Asia to load cargo.

b. November is the peak season for signing long-term contracts, shipping companies raise freight rates to drive up long-term contract prices.

② Supply

* In Nov, the production quantity is predicted 125,000mt

  (reduction refers to Dalian refinery shutdown and Maoming's reparation)

③ Demand

* In Nov and Dec, the domestic demand for candles are more.

* But considering of the uncertain international demand, the total demand probably keep stable.

5. Summary

Refineries has the plan to raise price again, yet in view of the increasing sea freight and the RMB appreciated, we think the price may keep steady or slightly up in Nov and Dec. Contact us now for more details.

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