Paraffin wax trade in Asia subdued on weak demand
Liquid paraffin wax prices in Asia dropped in line with the lower bids heard this week. Slackwax and solid wax prices were rolled over amid subdued trade.
The weakening stearic acid prices in Asia and firm US offers pushed Chinese paraffin wax buyers to the sidelines this week and they adopted a wait-and-see stance.
Slack wax
Prices are assessed as stable amid subdued trade.
A producer said it is selling slackwax with an oil content of 20%, 28% and 35% at $700/tonne FOB southeast Asia this month. A Thai producer was heard offering bulk product at around the $1000s/tonne on a FOB Thailand basis, while another priced its slackwax at a premium to current gasoil prices.
Several Iranian producers, including Sepahan oil and Behran Oil, offered at $1,100/tonne FOB Iran for product packed in second-hand drums.
Another Iranian producer said it sold 25% oil-content slackwax at $968/tonne FOB Iran.
A producer said it anticipated a decline in prices next month given the prevailing weak global economic outlook.
Steady vacuum gas oil (VGO) prices kept the latest round of increases in place for some suppliers, said market observers.
There is no difference between the higher and lower oil-content product, as many producers tend to classify them under the same price, said market observers.
Liquid wax
Prices fell at the high end of the range, in line with lower bids. Buying sentiment was weak.
Traders said they are afraid of bringing product into the US until there is some price stability. They are negotiating with Chinese oil majors to lower their export prices in tandem with ExxonMobil’s move. Market sources also said demand is weak.
Solid wax
Chinese fully refined 58/60°C melt-point paraffin wax prices are assessed as stable to reflect discussions. Offers remain at $1,570-1,580/tonne FOB China. Semi-refined wax was traded at a discount of around $10/tonne from fully refined wax.
Chinese parcels were listed at yuan (CNY) 10,000-10,400/tonne ex-tank. A domestic seller said freight rates and other logistical costs are usually at around CNY200/tonne.
Prices in southeast Asia and India are assessed as stable, in line with the discussions heard this week. A buyer said he purchased two containers at above $1,600/tonne CIF Malaysia.
Iranian producers said they are selling slackwax at $1,025-1,030/tonne CFR India. However, this could not be confirmed.
($1 = CNY6.43)
($1 = Rs45.24)
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