Europe September P-Wax Prices to Rise on Demand - Sources
LONDON (ICIS news)--European paraffin wax (p-wax) prices will increase by €20-30/tonne ($29-43/tonne) in September due to high demand, as suppliers reported successfully implementing further price rises over the course of August, sources said on Tuesday.
Prices were rising in line with feedstock costs and because of increased demand due to high season in the candle market, sources said. However, a trader noted that demand was still poor due to the vast amount of players on holiday.
“Demand for candles is down in comparison to previous years and the market will take longer to recover after the summer holiday lull,” the trader said.
A candle maker said that 56-58°C grade material was at a minimum of €960/tonne FD (free delivered) NWE (northwest Europe).
“There were successful increases throughout August, although there are not expected to be any significant price movements in September,” the source said.
Another candle maker said: “An increase of €40/tonne had been successfully implemented over the course of the month and producers will wait until the end of September before making any further price announcements.”
The majority of participants believed that a rise of between €20-50/tonne in September would incorporate the increases seen throughout the month of August.
Prices for 52-54°C material were assessed at €830-870/tonne FD NWE, 56-58°C grade was at €880-920/tonne FD NWE and 60-62°C product was at €940-980/tonne FD NWE, according to global chemical market intelligence service ICIS pricing.
P-wax is used in the production of candles as well as in the food, packaging and petroleum-jelly industries.
Prices were rising in line with feedstock costs and because of increased demand due to high season in the candle market, sources said. However, a trader noted that demand was still poor due to the vast amount of players on holiday.
“Demand for candles is down in comparison to previous years and the market will take longer to recover after the summer holiday lull,” the trader said.
A candle maker said that 56-58°C grade material was at a minimum of €960/tonne FD (free delivered) NWE (northwest Europe).
“There were successful increases throughout August, although there are not expected to be any significant price movements in September,” the source said.
Another candle maker said: “An increase of €40/tonne had been successfully implemented over the course of the month and producers will wait until the end of September before making any further price announcements.”
The majority of participants believed that a rise of between €20-50/tonne in September would incorporate the increases seen throughout the month of August.
Prices for 52-54°C material were assessed at €830-870/tonne FD NWE, 56-58°C grade was at €880-920/tonne FD NWE and 60-62°C product was at €940-980/tonne FD NWE, according to global chemical market intelligence service ICIS pricing.
P-wax is used in the production of candles as well as in the food, packaging and petroleum-jelly industries.
quoted from: ICIS.com
