Chlorinated Paraffin Price Trend and Forecast

Chlorinated Paraffin Regional Price Overview

Get the latest insights on price movement and trend analysis of Chlorinated Paraffin in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Chlorinated Paraffin Price Trend for the First Half of 2024

During the first half of 2024, the price trend of chlorinated paraffin showed a mixed performance characterized by periods of stability, moderate increases, and declines influenced by fluctuations in raw material costs and market dynamics.
 

Chlorinated Paraffin Price Chart

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In the early months, the market was stable as upstream raw material prices, including liquid wax and liquid chlorine, initially rose before softening. Downstream demand remained steady, primarily driven by on-demand purchasing and cautious buying behavior ahead of the holidays. As the market transitioned into February, chlorinated paraffin prices experienced slight upward movement due to improved cost support and the gradual recovery of downstream operations post-holiday. However, this trend shifted in March when prices weakened, driven by cautious downstream purchasing and increased low-price transactions, which led to a subdued trading atmosphere.

Manufacturers adjusted prices downward to stimulate sales amidst limited demand, and the market continued to be characterized by a cautious outlook. By April, the market saw initial price support from rising raw material costs, prompting chlorinated paraffin producers to raise their quotations temporarily. However, as the month progressed, the market softened again due to weaker liquid wax prices, leading to adjustments in chlorinated paraffin pricing. By May, the market experienced further weakening, influenced by continued declines in raw material prices, insufficient cost support, and tepid downstream demand. Throughout this period, chlorinated paraffin manufacturers operated at low production loads, adapting their pricing strategies to market conditions while navigating the fluctuating costs of raw materials.

The overall trading environment also remained cautious, with manufacturers and downstream buyers maintaining a watchful approach to market developments. As a result, chlorinated paraffin prices during the first half of 2024 demonstrated a pattern of initial stability, followed by periods of moderate increases and subsequent declines, reflecting the complex interplay of cost pressures, demand fluctuations, and market sentiment. The overall outlook remained focused on market consolidation with limited upward momentum, as cautious buying and fluctuating raw material trends shaped the pricing landscape of chlorinated paraffin during this period.

Analyst Insight

According to Procurement Resource, the price of Chlorinated Paraffin is estimated to oscillate, however, slightly on the upper end mirroring the market sentiments of its feedstock commodities and changing global demand patterns.
 

Chlorinated Paraffin Price Trend for Second Half of 2023

In making PVC goods, wires, cables, and coatings, chlorinated paraffin acts as a plasticizer and flame retardant. Further, chlorinated paraffin is also used as an addition in metalworking fluids, lubricants, and sealants. It serves as a waterproofing agent for fabrics and textiles in the textile industry, which has been the most significant market driver of the commodity in the past quarters.

In Asia, the price of chlorinated paraffin experienced a slight decrease during the H2 of 2023, particularly in Chinese markets, due to reduced costs of raw materials like liquid wax. Throughout the quarter, there was no significant improvement in downstream demand, pushing the producers and distributors to adjust prices based on actual costs.

Despite volatile raw material prices and limited market trading, chlorinated paraffin prices stabilized only at the lower side of the spectrum. Similarly, in Europe, fluctuations in the chlorinated paraffin market were influenced by trends in crude oil and naphtha industries, as chlorinated paraffin is primarily derived from these sources. The blockage of Russian pipelines and loss of exports due to geopolitical tensions led to considerable market fluctuations. Additionally, the consumer sector provided limited support amid rising inflation rates.

In North America, the crude oil sector experienced a significant decline majorly in the last quarter of 2023, making it challenging for chlorinated paraffin price trends to recover. Increased import volumes, particularly from Asian countries, coupled with weak consumer demand, resulted in higher inventory levels of chlorinated paraffin. To balance supply and demand, traders resorted to destocking activities by offering discounts on accumulated inventories, leading to a downward trend in chlorinated paraffin prices.

Analyst Insight

According to Procurement Resource, the price trend of Chlorinated Paraffin is expected to be based on the limited number of inquiries from the consumer sector and a decline in the number of investments received by the production industries.
 

Chlorinated Paraffin Price Trend for the First Half of 2023

Chlorinated Paraffin is primarily used in fire-resistant PVC compounds, wiring, flooring, lubricant, etc., industries. As it is directly obtained by chlorinating Paraffin wax, the price trend also follow any fluctuations in the paraffin wax prices.

Chlorinated Paraffin observed mixed price trend throughout the first half of 2023. As the Chinese market was trying to revive itself after the Covid 19 restrictions were lifted, industries posed fresh demands at the beginning of the first quarter, supporting the market fundamentals. So, the Chlorinated Paraffin prices remained on an inclining trajectory during Q1. But as the quarters shifted, the inventories started overflowing, and the market experienced a demand dip. These instances pushed down the prices, and they followed a plunging trajectory throughout the second quarter. Overall, fluctuating market sentiments were observed.

Analyst Insight

According to Procurement Resource, the Chlorinated Paraffin market is expected to continue fluctuating as per the current uncertainties in the downstream demands.

Procurement Resource provides latest prices of Chlorinated Paraffin. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.