Paraffin Price Trend and Forecast

Paraffin Regional Price Overview

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

Paraffin Price Trend for the First Half of 2024

Asia

In Asia, the paraffin market experienced a relatively stable period during the first quarter, particularly in China, where the price trend remained mostly flat. This stability was supported by balanced supply-demand dynamics, where existing inventory levels helped absorb the impact of rising crude oil prices. The plastics and packaging industries continued to provide steady demand, helping to maintain market equilibrium.
 

Paraffin Price Chart

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In contrast, India's market saw minor fluctuations, with rising upstream costs affecting suppliers, while downstream sectors displayed some volatility. However, overall, the paraffin market in Asia remained steady through Q1. Moving into the second quarter, India experienced a noticeable increase in paraffin prices due to strong demand from the cosmetics, pharmaceuticals, and nutraceutical sectors. The surge in domestic manufacturing activity further boosted demand, while rising crude oil costs put additional pressure on prices. As the quarter progressed, manufacturers passed on these increased costs to consumers, contributing to a higher pricing trend.

Europe

In Europe, the paraffin market started on a soft note in the first quarter, with prices remaining subdued due to ample inventories and weak demand early in the year. However, as raw material costs began to rise and demand marginally improved, particularly in the second half of the quarter, prices started to climb. By the second quarter, geopolitical factors and crude oil supply constraints continued to influence the market.

Prices initially rose due to robust demand across industrial sectors, but as the quarter progressed, improved crude oil supply conditions and reduced geopolitical risks led to a stabilization in prices. The market showed a more optimistic outlook toward the latter part of the second quarter, as end-user industries experienced a strong rebound.

North America

In North America, the paraffin market mirrored the trends seen in Europe, though with more subdued price fluctuations. In Q1, the market remained largely stable, as supply and demand maintained a narrow gap, with steady demand from the cosmetics sector countering rising production costs. However, disruptions at key production facilities in Texas, along with scheduled maintenance activities, caused prices to rise briefly. In the second quarter, demand from the pharmaceutical sector showed signs of recovery, while the nutraceutical industry remained subdued. Despite these challenges, the North American market managed to maintain relative stability with a positive outlook for the latter half of the year.

Analyst Insight

According to Procurement Resource, the price trend of Paraffin is expected to exhibit bearish momentum in the upcoming sessions. This anticipated price decrease is linked to ongoing inventory destocking due to lower demand from downstream markets and underperformance in economic activities, further influencing the market's demand.
 

Paraffin Price Trend for the First Half of 2023

Asia

The price trend for Paraffin closely mimicked the fluctuations in crude oil prices. As the crude oil prices normalized at the beginning of the first quarter, Paraffin prices wavered around a similar price range. But as the quarters shifted, the surge in crude oil prices pushed the Paraffin prices up. However, with excess supplies, the momentum soon shifted south again. The availability of discounted Russian oil to both India and China kept the Paraffin prices in check for the region.

Europe

Crude oil prices rode exponentially high in the European continent after Russia invaded Ukraine in 2022. However, since the beginning of the year 2023, some normalizations were observed as the new trade routes and supply chains facilitated trade and transportation. Also, refined petroleum products like paraffin are usually imported by European countries, and cheaper Asian imports kept the prices down. Low market demands, especially from downstream cosmetic industries, owing to the negative consumer sentiment about using Paraffin in skin-related products, further hampered the demands. Overall, bearish market sentiments were observed.

North America

Just like the European Paraffin market, the North American market also exhibited feeble price sentiments throughout the discussed period. Very limited downstream demands in the face of overflowing inventories kept the price trend down as the market was under inflationary pressure as well.

Analyst Insight

According to Procurement Resource, the price trend for Paraffin are likely to oscillate in the coming quarter, given the high stocks and declining market demands.
 

Paraffin Price Trend for the Second Half of 2022

Asia

The paraffin prices plummeted in the Asian Pacific region. The prices showed a downward trajectory as the demand from the market remained weak and the ripple effect of covid restrictions continued to affect the market. A major hit was taken by the cosmetics and candle industry as they decreased their inquiries significantly. The situation was further fueled by the rise in inventories and high inflation rates in the region which combinedly led to the decline in the price trend of paraffin.

Europe

The European region saw an uprising trend in terms of prices of paraffin as the production of the commodity was not ample concerning the inclining demand. This was, however, short-lived as the market uncertainties hovered over the region. The prices dropped as inflation rose and the natural oil and gas supplies from Russia were restricted. The reduced domestic offtakes, soaring inflation, high crude oil, and piling stocks led to the declining price trend of paraffin.

North America

The plunging trend of paraffin seen in the European and Asia Pacific region was also observed in North America. The prices declined as a result of the crude oil uncertainties, disruption in supply chains, and sanctions issued by the West on Russian imports all significantly affected the market amid the fear of recession in the market. This all led to the declining trend in paraffin prices in the North American region.

Analyst Insight

According to Procurement Resource, the price trend of Paraffin is expected to remain on the lower side in the upcoming quarter. The increasing market uncertainties, low demand from the end-user industries, and ripple effects of covid restrictions will lead to a decrease in paraffin prices.
 

Paraffin Price trend For the First Half of 2022

Stay updated with the latest Paraffin prices, historical data, and tailored regional analysis
 

Asia

The price of paraffin surged globally owing to inflated crude oil, coal, and shale oil prices. With the western sanctions against Russian exports, the prices of oil rose to unprecedented levels. Thus, the petrochemical industry suffered, and the prices of paraffin surged. The price of paraffin averaged 1650 USD/MT in the Chinese market whereas it averaged 156380 INR/MT Ex Delhi NCR in the Indian domestic market. However, during the second quarter, the price trend for paraffin stabilized as the upstream crude oil prices relaxed.

Europe

The political struggle which unleashed in the East-European region tremendously impacted the economic conditions worldwide giving way to runaway inflation. With the European embargo on Russian oil, petrochemical prices surged throughout the region. The paraffin prices recorded an average hike of 7.5% in its prices. However, these raised prices soon caused the market demand to dwindle thereby causing the prices to stabilize slightly.

North America

During the first quarter, the paraffin prices averaged 2250 USD/MT in the US domestic market. The inflated crude oil prices, complex logistics and lack of skilled labour contributed to these high prices. However, the price trend for paraffin staggered in the second quarter owing to the phenomenon of demand destruction amid high-cost inflation and contractionary policies announced by the central bank.

Procurement Resource provides latest prices of 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.