20260518~20260524 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 international crude oil price remained basically flat this period, with the Brent crude oil price averaging $104.80 per barrel. International oil prices fluctuated at high levels this week, but showed an overall downward trend, which is likely related to the ongoing US-Iran negotiations. In particular, US President Trump stated on Saturday that the US and Iran had “essentially reached” a peace agreement that would reopen the Strait of Hormuz and would be announced soon.

2. Production capacity

Among the major refineries nationwide, Maoming and Dalian have suspended production, and the remaining refineries are operating normally.

Period	Factory	Status
20260515-0521	Daqing Pec	Normal
20260515-0521	Daqing Ref & Che	Normal
20260515-0521	Dalian Pec	Closed and Relocating
20260515-0521	Fushun Pec	Normal
20260515-0521	Lanzhou Pec	Normal
20260515-0521	Jingmen Pec	Normal
20260515-0521	Gaoqiao Pec	Normal
20260515-0521	Maoming Pec	Suspended
20260515-0521	Jinan Ref & Che	Normal
20260515-0521	Nanyang Pec	Normal
20260515-0521	Panjing Beiran	Normal

 

3. Stock

National inventory remained at 28,000 tons. Driven by exports, the domestic paraffin wax market showed some recovery.

4. Market demand

Currently, it is the traditional off-season, while with paraffin wax prices moderate, demand is increasing.

5. Industry analysis overview

As expected, this week, PetroChina and Sinopec almost simultaneously lowered the list prices of their paraffin wax products by
200-300 yuan/ton. Considering this week’s market situation, end-users have shown some acceptance of the prices, and the market has recovered somewhat. However, compared to current international oil prices, paraffin wax prices are historically at a “loss-making” level and cannot be sustained in the long term.

6. Price expectations

Next week, paraffin wax prices are expected to remain stable, with the possibility of flexible price increases, especially for key grades.