Paraffin wax rally continues in August

According to data from the National Bureau of Statistics, in the just-ended July, China’s manufacturing purchasing managers index was 50.4%, down 0.5 percentage points from the previous month. Due to the In March, some enterprises intensively entered the equipment maintenance period. In addition, due to the impact of extreme weather such as high temperatures and floods in some areas, domestic manufacturing production activities and market demand have generally slowed down. The overall performance of the domestic commodity market is not optimistic, but the paraffin market has It shows that the market is not weak in the off-season. According to Zhongyu Information monitoring data, the average domestic price of 58# semi-refined paraffin in July was 7,328 yuan/ton, an increase of 72 yuan/ton or 1% from the price at the end of June, and 1% higher than the same period last year. Prices rose by 41%, and the pace of growth in the paraffin wax market did not slow down in August. At the beginning of the month, the two major groups, PetroChina and Sinopec, once again started the upward trend this month.

According to Zhongyu Information, since August 1, the prices of paraffin wax of the two major groups, PetroChina and Sinopec, have increased by 50-150 yuan/ton. , and some brand resources still maintain a limited sales model. The main refineries are supported by export orders and the inventory continues to be low. Even during the off-season of traditional domestic demand, the market price continues to be pushed up, and with the As the traditional demand peak season of September and October approaches, the market’s stocking sentiment will also gradually increase. As a result, the paraffin market will show an obvious off-season trend this year.

According to data monitored by Zhongyu, the total domestic paraffin export volume in the first half of the year was 387,000 tons, an increase of about 13% compared with 2020, while the downstream candle export volume There was also an obvious increasing trend in the first half of the year. According to Zhongyu Information monitoring data, domestic candle exports reached 138,000 tons from January to June, an increase of about 22% compared with the same period last year. The increase in paraffin and downstream candle export data is also an important factor in the low inventory of major domestic refineries. It has played a clear guiding role in the step-by-step rise in paraffin prices this year. However, due to the wide rise in domestic paraffin prices this year, The market may have insufficient buying momentum. Zhongyu Information predicts that it will be difficult for the paraffin wax market price to rise again in a straight line in the short term. However, the paraffin wax market price continues to rise steadily and the trend may continue.