The relevant information this week is as follows:
1. Raw material
Crude oil: International crude oil prices remained essentially flat compared to the previous statistical period, with the cyclical average price of Brent crude oil at $66.55 per barrel. In contrast to last week’s trend, oil prices have gradually risen from a low this week. In particular, Wednesday’s EIA (U.S. Energy Information Administration) data showed a significant drop in crude oil and gasoline
inventories, indicating the continuation of the summer peak season.
However, as we near the end of summer, the short-term market focus remains firmly on the US-brokered Russia-Ukraine peace talks. The recent weakness in oil prices is primarily due to market expectations that a peace agreement could ultimately lift sanctions on Russia and restore its energy supply channels. In the medium term, market concerns about geopolitical tensions remain, and tariffs and sanctions remain fraught with uncertainty.
2. Production capacity
Among the major production refineries in the country, Maoming, Dalian and Fushun have stopped production, Lanzhou is producing intermittently, and the rest of the refineries are operating normally.
|
Period |
Factory |
Status |
|
20250815-0821 |
Daqing Pec |
Normal |
|
20250815-0821 |
Daqing Ref & Che |
|
|
20250815-0821 |
Dalian Pec |
Closed and Relocating |
|
20250815-0821 |
Fushun Pec |
Suspended |
|
20250815-0821 |
Lanzhou Pec |
Intermittent |
|
20250815-0821 |
Jingmen Pec |
Normal |
|
20250815-0821 |
Gaoqiao Pec |
Normal |
|
20250815-0821 |
Maoming Pec |
Suspended |
|
20250815-0821 |
Jinan Ref & Che |
Normal |
|
20250815-0821 |
Nanyang Pec |
Normal |
|
20250815-0821 |
Panjing Beiran |
Normal |
3. Stock
The market was relatively quiet this week, with traders and manufacturers adopting a wait-and-see attitude. National inventories have risen to 15,000 tons.
4. Market demand
Paraffin wax market demand is declining, prompting a wait-and-see approach.
5. Industry analysis overview
The Fushun refinery began shutting down for maintenance this week, but the paraffin wax market remains quiet, with inventories surging. This is due to the low operating rates of downstream manufacturers caused by high temperatures. Currently, the listed price for paraffin wax remains unchanged, and all parties remain on the sidelines.
Based on past experience, September and October are peak seasons for paraffin wax sales. While oil prices are low this year and may continue to decline, paraffin wax prices are also relatively low. We will need to closely monitor national paraffin wax inventory data moving forward. Unless inventories rise significantly, listed prices are expected to remain current.
6. Price expectations
Currently, paraffin wax prices are generally stable. The market for semi-refined paraffin wax is sluggish; the market for fully refined paraffin wax will remain stable due to the shutdown of the Fushun refinery, especially the medium and high melting point paraffin wax types.