Seen from the apparent surface, the domestic paraffin wax market was still fiery, but there were also some risks .Under the high cost pressure, some refineries had to decrease output or shut down. Whether from domestic market or international market, the downstream demand declined sharply, and the main reason was that under the serious inflation in whole world, people had to put more money on basic living, and yet the purchasing capability to the candles decreased. Downstream candles plants decreased their purchasing capability to paraffin wax either, as they said, in current situation; it is to use more money to exchange for fewer raw materials, but the produced goods had to heap in the warehouse. If sold by a higher price was restrained, but stable price meant losses.  They were in a dilemma.

 

    On supply: this month Gaoqiao decreased output, and this week Yanshan PC restarted unit, and next week Lanzhou PC would resume normal operation, Daqing PC would take maintenance for one month, and other refineries kept a steady situation. Seen from this, the domestic wax resources would not present a short supply situation. Presently the tight resources were manly caused by factors: firstly is the export was so smooth, and secondly under the high crude oil price, the traders thought the wax market would present a bullish trend, and speculations were very serious now. But demand was the key element to decide market, this week, NE-China of Petrochina raised prices cautiously, and it was forecasted that the other refineries would follow to increase price. The recent market would keep an increasing trend, but regardless candles and paraffin wax products, it was a spending off season, the hidden risks really worrying.