20240226~20240303 paraffin market analysis of China

The relevant information this week is as follows:

1. Raw material

Crude oil: During this statistical week, the price of WTI crude oil still steadily exceeded 75 US dollars. Although there was a slight fluctuation, it has been rising overall since January this year. OPEC and its allies will make a decision on production cuts in early March. Based on last year’s analysis, this will be a high probability. Major futures analysis institutions have predicted that oil prices will rise to 80-90 US dollars per barrel under the premise of U.S. interest rate cuts.

Natural gas: Natural gas is currently peak season, and the JKM index remains high.


2. Production capacity

Among the country’s major production and refineries, Maoming has suspended production, the rest are operating normally.

Period

Factory

Status

20240223—0229

Daqing Pec

Normal

20240223—0229

Daqing Ref & Che

Normal

20240223—0229

Dalian Pec

Normal

20240223—0229

Fushun Pec

Normal

20240223—0229

Lanzhou Pec

Normal

20240223—0229

Jingmen Pec

Normal

20240223—0229

Gaoqiao Pec

Normal

20240223—0229

Maoming Pec

Suspended

20240223—0229

Jinan Ref & Che

Normal

20240223—0229

Nanyang Pec

Normal

20240223—0229

Panjing Beiran

Normal

 

3. Stock

The total domestic paraffin keeps its inventory as that of last week, with the remaining inventory of about 16,000 tons.

4. Market demand

After the festival, midstream and downstream merchants are actively restocking, and popular models are in short
supply. The key point is that major dealers have begun to actively stock up.

5. Industry analysis overview

On Wednesday and Thursday this week, PetroChina and Sinopec announced another increase in paraffin prices by 100 to 200 yuan. Based on past experience, continuous price increases indicate the arrival of a paraffin wax
rising cycle. In the next 1-2 months, the paraffin wax market is likely to remain flat or rise.

6. Price expectations

At present, the inventory is low, and various markets are selling at increased prices, so the possibility of price drops is extremely small.

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