Fully-refined wax prices projected lower
US fully refined paraffin wax (p-wax) markets continued seasonally quiet, but spot prices were projected lower on falling crude oil, sources said during the week ending 10 August.
Prospects of a slowing US economy in the months ahead sent crude oil sharply lower on commodity exchanges this week. With oil down about 20% from last week, buyers will be putting big pressure on ExxonMobil for further cuts to its p-wax prices. ExxonMobil last reduced its prices 6 cents/lb effective 1 July.
No price announcements were heard from any US producer this week.
Future demand in the various industrial sectors was of concern to many market watchers as they fretted about the continuing slowness in the US economy.
Among alternatives, prices for soy wax were assessed this week at 73-78 cents/lb, down 3 cents/lb from last week, as futures prices for soybean moved lower from the prior week at the Chicago Mercantile Exchange.
The US Department of Agriculture this week assessed the value of edible tallow at 57 cents/lb, down 3 cents/lb from last week.
In Asia this week, liquid prices fell at the high end of the range. Traders said they were afraid of bringing product into the US until there is some price stability. Traders were negotiating with Chinese oil majors to lower their export prices in tandem with ExxonMobil’s last move. Slackwax and solid wax prices were rolled over from the prior week amid subdued trade.
Upstream, base oils prices were steady this week. Sellers said it was too early to assess ramifications from the drop in crude oil prices, stressing that several weeks would probably be required to determine the upstream performance trend and its potential consequences.
| US soy wax price range (cents/lb) |
| 10 August | 3 August | 27 July | 20 July | 13 July |
| 73-78 | 76-81 | 77-82 | 77-82 | 78-83 |
This week in ICIS ( www.icis.com ):
28/07/2011 06:10 S Korea’s Samsung, Honam buy spot naphtha at weaker discounts
27/07/2011 09:51 China’s Shenyang Paraffin Wax to shut acrylic acid units in Sep
25/07/2011 13:00 Spindle oil from Bombay Lubricants Oil Co
25/07/2011 07:17 S Korea June petrochemical exports grow 23.2% on higher prices
21/07/2011 00:40 US July paraffin wax prices assessed lower by 6 cents/lb
