20260302~20260308 paraffin market analysis of China

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 surged by approximately $8 per barrel during this period, with Brent crude oil averaging $79.63 per barrel. The situation in the Middle East has far exceeded expectations, especially with Iran announcing the blockade of the Strait of Hormuz, a waterway that directly controls nearly one-fifth of global crude oil trade, approximately 20-21 million barrels per day. Currently, the highest price for Brent crude oil has reached $94.64 per barrel, and many investment institutions predict it could exceed $100 per barrel.


2. Production capacity

Among the major refineries in the country, Maoming and Dalian have stopped production, and the rest of the refineries are operating normally.

Period

Factory

Status

20260227-0305

Daqing Pec

Normal

20260227-0305

Daqing Ref & Che

Normal

20260227-0305

Dalian Pec

Closed and Relocating

20260227-0305

Fushun Pec

Normal

20260227-0305

Lanzhou Pec

Normal

20260227-0305

Jingmen Pec

Normal

20260227-0305

Gaoqiao Pec

Normal

20260227-0305

Maoming Pec

Suspended

20260227-0305

Jinan Ref & Che

Normal

20260227-0305

Nanyang Pec

Normal

20260227-0305

Panjing Beiran

Normal

 

3. Stock

Currently, national inventory is approximately 0.9 million tons, and paraffin wax molding capacity has returned to normal.

4. Market demand

End-user demand was strong this week, with markets across various regions experiencing robust activity.

5. Industry analysis overview

Due to the impact of the Middle East situation, end-users generally anticipate that paraffin wax prices will rise along with crude oil
prices, resulting in a very active paraffin wax market this week. Furthermore, Sinopec and PetroChina raised their list prices for paraffin wax twice this week, undoubtedly reinforcing the market’s upward trend. Currently, profit margins for traders in various regions have increased from 50 yuan/ton to 100 yuan/ton, or even more.

6. Price expectations

Paraffin wax prices are expected to rise in the coming weeks. Currently, paraffin wax prices remain low, and there may be a further increase of 400 yuan/ton before May 1st.

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