The relevant information this week is as follows:
1. Raw material
Crude oil: Compared with the previous statistical cycle, the international crude oil price in this statistical cycle is basically flat, and the average price of Brent crude oil is US$64.03 per barrel. Although the tariff war triggered by US President Trump has eased in various aspects this week, its uncertainty and concerns about oversupply of crude oil still keep crude oil prices down, especially on Saturday (May 31st) local time, when OPEC+ members agreed to increase oil supply by 411,000 barrels per day in July. This OPEC+ production increase is aimed at regaining market share lost to US shale oil producers and other competitors, and punishing overproduced member countries such as Kazakhstan and Iraq, in addition to meeting Trump’s demand for cheap oil.
2. Production capacity
Among the major production refineries in the country, Maoming, Dalian, Jinan and Lanzhou have stopped production, while the rest of the refineries are operating normally.
3. Stock
The market conditions were good this week. End users purchased on demand, and dealers stocked up to complete the sales tasks that were not completed due to previous sluggish sales. Currently, the national inventory has dropped to 17,000 tons.
4. Market demand
Downstream enterprises are actively purchasing this week, and traders are starting to stock up to complete sales tasks.
5. Industry analysis overview
This week is the last week of May. With the stability of paraffin prices, end users are purchasing on demand, and traders are stocking
up to complete sales tasks. At present, with the sharp decline in paraffin inventories, major traders in the paraffin market have gradually gotten rid of the “zero profit” sales model and generally started to increase prices by 30~50 yuan/ton. The short-term downward phase has shown signs of ending.
6. Price expectations
At present, the price of paraffin is mainly stable, and the international oil price is almost flat. Combined with the current national paraffin inventory data and its changing trends, paraffin wax prices could experience a flexible rise.