My country’s paraffin wax export volume has been maintained at a high level, and the export volume has remained at about 500,000-600,000 tons in the past five years. The export of paraffin wax has always been one of the main factors affecting the domestic market. The reason is that the export volume accounts for more than 40% of the total domestic production, and it has an important international position. The export price of paraffin wax in China also dominates the global paraffin wax Price trend.
In the past three years, the paraffin wax market has overcapacity and the downstream digestion capacity is limited. The domestic paraffin wax market supply is far greater than the actual demand, and the domestic paraffin wax market has obvious contradictions between supply and demand. More than 95% of China’s paraffin wax production is concentrated in the refineries of Petro China and Sinopec. In June 2019, the total domestic paraffin wax production was 110,000 tons, a slight decrease of 9% from the previous month and a year-on-year drop of 7.3%. The decline in refinery supply this month was mainly due to the shutdown of the Dalian Petrochemical plant in early May. The planned output will be about 30,000 tons. Other refinery plants are mainly operating smoothly.
According to customs data, domestic paraffin wax exports in June were 53,450 tons, an increase of 63.61% month-on-month and 36.48% year-on-year. Exports in June increased month-on-month and year-on-year. This was mainly due to the impact of the global epidemic in the early stage, the postponement of export orders, and the support of buying up and not buying down mentality, which further drove market transactions and supported the rise in exports in June. In June, domestic paraffin wax imports were about 2871.7 tons, an increase of 209.8% month-on-month and an increase of 335.8% year-on-year. My country’s paraffin wax import resources are relatively small, mainly based on the special needs of individual enterprises. The imported resources are mostly other mineral waxes with higher oil content.
From the June paraffin export data, general trade ranked first, with an export volume of 41,000 tons, accounting for 77% of the total, a year-on-year increase of 143.3% and a month-on-month increase of 102%. The resources mainly come from the Petro China Northeast Refinery. The export volume of processing trade with supplied materials was 12,200 tons, accounting for 23% of the total, a year-on-year decrease of 45%. Its resources were mainly processed by Dalian Petrochemical.
In June, Liaoning Province still ranked first in terms of the place of registration, with Petro China’s Northeast resources as the main source. The export volume reached 33,000 tons, accounting for 63% of the total export volume. The export growth rate was 155.8%, ranking second. Guangdong Province, with an export volume of 15,000 tons, an increase of 25.1% from the previous month; Beijing ranked third, with an export resource of 6,000 tons, a decrease of 18.3% from the previous month and a year-on-year decrease of 30.2%.
According to customs data, the United States ranked first in terms of paraffin wax exports in terms of consuming countries in June, with an export volume of 10,600 tons, accounting for 20% of the total export volume, an increase of 184% from the previous month. Mexico, which ranks second, exported 8,300 tons, accounting for 16% of total exports, a 16% drop from the previous month. Vietnam ranked third, with an export resource of 3,900 tons, accounting for 7% of the total export volume.
Since the end of May, the paraffin wax market prices have continued to rise, and the current domestic refinery paraffin resources are tight, supported by the buying up and not buying down mentality, the market speculative atmosphere still exists. The export aspect has always been one of the main factors affecting the domestic paraffin wax market, and plays a pivotal role. According to the market, under the influence of uncertain factors such as the global epidemic and trade wars, paraffin wax exports are difficult to have a distinct off-peak season.