1. Domestic paraffin wax market Report in general:

 

    The international crude oil fluctuated sharply in July; while the domestic paraffin wax market remained fiery, but the supply was tight from partial refineries. The paraffin wax picked up by Yuan 600-800/mt this month. The liquid wax exported largely while the production of veneer wax reduced, so the traders purchasing activities were high, and refineries were under tight state.

 

    Other refineries in NE-China region also raised their offers, Dalian PC exported liquid wax to reduce inner sales pressure. The paraffin wax operation unit in Gaoqiao PC was in maintenance with reduced production, the supplies remained tight, which promoted the price-hiking in this region. But the high price restrained the downstream demand severely. Some plants had to lower prices due to soft demand. The offer would continue to slide in the future.

 

2. Description of NE-China Market (belong to Petrochina):

 

    At the beginning of this month, refineries remained the raising trend followed by Fushun PC, while as the international crude oil plunged largely, the offers from each refinery steadied by the end of this month. The total production amount from Fushun PC reached 30,000mt this month with low inventory, which invoked the price-hiking in NE-China market. Compared with Fushun PC and Daqing PC, the price in Dalian PC reduced by Yuan 200/mt and the price range between South and North China was the main reason. The monthly output in Daqing PC was 14,000mt with 4,000mt for exported. The plant mainly produced crude wax and 58# semi-refined wax. The refineries began to stop operation from 24^th to do maintenance, and the paraffin wax operation unit would stop on Aug 3^rd or 4^th for one month. The monthly output in Daqing Refinery was 10,000mt and 3,000mt for exported, resources were mainly for inner sales. Therefore refineries expected to lessen the increasing range to ease the sales pressure. The price-hiking range was small this month, mainly 58# semi-refined wax was produced. Jinxi PC produced 4,500mt this month with 1,300mt for exported. The product was white delicate one, so the price was the lowest in the region. The plant mainly produced 56# semi-refined wax.

 

Refineries	Price of late July (Yuan/mt)	Price of late June (Yuan/mt)	Markup	Remaks
Fushun PC (Semi-refined 58#)	11835	11235	+600
Dalian PC (Semi-refined 58#)	11900	11300	+600
Daqing PC (Semi-refined 58#)	11950	11350	+600
Daqing Refinery (Semi-refined 58#)	11750	11350	+400
Jinxi PC (Semi-refined 58#)	11700	11000	+700	Only Semi-refined  56# had goods

 

    Description of N-China (belong to Sinopec)

 

    The resources were sparse in the region, and the main factor was Yanshan PC recovered operation on 10^th with enhanced offers. The plant mainly produced 56# semi-refined wax with monthly output around 3,000mt. The refinery would not reduce production during Olympic. Jinan Refinery recovered operation at the middle of this month with monthly output around 1,200/mt, the paraffin wax demand was better. But the refinery adopted collocation policy to promote sales, which restrained the sales to some extent. By the end of this month, the sales reduced in light of domestic market.

 

Refineries	Price of late July (Yuan/mt)	Price of late June (Yuan/mt)	Markup	Remarks
Yanshan PC (Semi-refined 58#)	12120	11520	+600
Jinan Refinery (Semi-refined 54#)	11700	10600	+1100	Production would recover by the end of this month

 

3. Forecasting: 

 

    Paraffin wax price in July increased at first, and then it kept stable. The main elements influencing the paraffin wax market in July were as follows: 1.the crude oil price plunged largely, which influenced the traders’sentiment greatly. As the previous price-increasing market, traders purchased activity, so most domestic resources were gathered in the traders’ hands. But the following dropping trend made the traders sell cargoes eagerly, which made the market supplies increased. 2. Presently the paraffin wax demand was at low level, which restrained the sales. 3. During Olympic, the downstream operation was at low state, the demand tended soft, so many plants had to decrease offers to ease inventories.

   

    It was forecasted the August market would kept stable, the main reasons were as follows: 1. Daqing PC began to shun down the operation unit for one month, the domestic resources declined, which would benefit the paraffin wax market; 2. Presently Fushun PC and Gaoqiao PC, which played a key role in leading the whole market, were in the state of low inventory and no inventory. 3. After the Olympic, the market would enter into the consumption season, and the international market would prepare goods for the Christmas; 4. The paraffin wax conference in August would help to enhance the offers. Therefore, the August paraffin wax market would tend flat, not excluding adopt favorable and collocation policy to sell.