The relevant information this week is as follows:
1. Raw material
Crude oil: Compared to the previous statistical period, the average price of international crude oil fell by approximately $4 per barrel during this period, with Brent crude oil averaging $100.34 per barrel. This week saw a slight easing of tensions in the Middle East. First, Iran announced a relaxation of shipping restrictions in the nearly shut-down Strait of Hormuz, stating that its strikes were only aimed at aggressors such as the United States and Israel, and their allies. Second, following the failure of US President Trump’s “48-hour deadline” strategy of maximum pressure, he announced on Thursday (March 26, 2026) an extension of the deadline to 10 days. While this prevented international crude oil prices from surging to $130 per barrel, many investment institutions believe that Trump is preparing for a new round of strikes, leading to a rebound of $6 per barrel after a sharp drop on Monday and Tuesday.
Currently, the development trend of the Middle East situation remains difficult to predict. Investors are no longer reacting solely to
rhetoric but are waiting for clearer concrete actions.
2. Production capacity
Among the major refineries in the country, Maoming and Dalian have stopped production, Lanzhou produces intermittently and the rest of the refineries are operating normally.
|
Period |
Factory |
Status |
|
20260320-0326 |
Daqing Pec |
Normal |
|
20260320-0326 |
Daqing Ref & Che |
|
|
20260320-0326 |
Dalian Pec |
Closed and Relocating |
|
20260320-0326 |
Fushun Pec |
Normal |
|
20260320-0326 |
Lanzhou Pec |
Intermittently |
|
20260320-0326 |
Jingmen Pec |
Normal |
|
20260320-0326 |
Gaoqiao Pec |
Normal |
|
20260320-0326 |
Maoming Pec |
Suspended |
|
20260320-0326 |
Jinan Ref & Che |
Normal |
|
20260320-0326 |
Nanyang Pec |
Normal |
|
20260320-0326 |
Panjing Beiran |
Normal |
3. Stock
Currently, national inventory is approximately 0.9 million tons. Given the relatively high prices, trading is becoming increasingly cautious.
4. Market demand
End-user demand began to shrink this week. Although current paraffin wax prices have not reached historical highs, many end-users are choosing to wait and see due to concerns about market affordability under the current economic environment.
5. Industry analysis overview
After two consecutive weeks of sharp price increases, paraffin wax price adjustments finally slowed this week, rising by only 200 yuan/ton. This is still about 300-500 yuan/ton away from the historical high since 2023. Currently, end-users in the market are worried about paraffin wax prices, mainly due to the current economic environ-ment. Even though crude oil prices are much higher than before under similar conditions on the price of paraffin, the market’s ability to absorb these prices has significantly decreased.
6. Price expectations
Next week, paraffin wax prices are expected to remain stable with a slight upward trend. Currently, paraffin wax prices are at a mid-to-high level, and there may be another 300-500 yuan/ton of upward potential before May 1st.