Paraffin wax price index

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Paraffin wax price index

This post is a summary of the paraffin wax price developments. The price developments of paraffin wax are expressed in US$ prices converted FX rates applicable at the time when the price was valid. Paraffin wax price index developments are calculated from multiple separate sources of data to ensure statistical accuracy.

The outlook for paraffin wax prices, on the second tab, is generated from different inputs including:

• Very recent price developments of immediate cost drivers of paraffin wax prices
• Recent price developments of underlying feedstocks which drive the price of paraffin wax
• Market futures for both cost drives and feedstocks of paraffin wax prices
• Adjustment of current supply/demand imbalances in the paraffin wax market
• Longer term trends in likely demand conditions

Further information on the Paraffin wax price chart

What is paraffin wax

Paraffin wax is a white or colorless solid wax that is derived from petroleum. It is a mixture of hydrocarbon molecules with carbon atoms ranging from 20 to 40. Paraffin wax is odorless, tasteless, and insoluble in water but soluble in most organic solvents.

Paraffin wax is widely used for its excellent insulating properties and ability to maintain a consistent temperature. It is also used in the production of candles, as it burns cleanly and evenly. In addition, it is used as a lubricant, coating, and in various industrial applications such as in the manufacture of matches, crayons, and paper products.

Paraffin wax is available in different grades based on its melting point and other physical characteristics. It can range from soft, low-melting point waxes used in cosmetic and pharmaceutical applications to hard, high-melting point waxes used in industrial applications. The properties of paraffin wax can be modified through the addition of other materials, such as microcrystalline wax, to alter its melting point and other properties.

What is paraffin wax used for

Paraffin wax is used in a wide range of applications due to its unique properties, including its ability to maintain a consistent temperature, its excellent insulating properties, and its low cost. Here are some of the main uses of paraffin wax:

Candle-making

Paraffin wax is one of the most common types of wax used for making candles. It burns cleanly and evenly and is available in a range of melting points and colors.

Cosmetics and personal care

Paraffin wax is used in a variety of cosmetic and personal care products, such as lipsticks, lip balms, lotions, and hair products. It can help to soften and moisturize the skin and hair.

Food industry

Paraffin wax is used as a coating on certain types of fruits and vegetables to help preserve freshness and appearance.

Pharmaceuticals

Paraffin wax is used in some pharmaceutical products, such as ointments and creams, as a base ingredient.

Industrial applications

Paraffin wax is used in a wide range of industrial applications, such as in the production of matches, crayons, packaging materials, and electrical insulators.

Overall, paraffin wax is a versatile material with many different applications. Its properties can be modified to suit specific needs, making it a popular choice in a variety of industries.

How is paraffin wax produced

Paraffin wax is produced from petroleum, a fossil fuel derived from ancient organic matter such as plankton and algae. Here are the general steps involved in the production of paraffin wax:

Crude oil refining

Petroleum is extracted from the ground and transported to a refinery, where it is processed to separate different fractions based on their boiling points. Paraffin wax is derived from the heavier fractions of crude oil, which have a higher boiling point.

Solvent extraction

The heavy fractions of crude oil are then treated with a solvent, typically propane or hexane, to remove impurities such as sulfur, nitrogen, and aromatic compounds. This process helps to produce a purer form of paraffin wax.

Dewaxing

The purified wax is then cooled and filtered to remove any solid particles and waxy materials that may be present. This process is known as dewaxing and can be done using different methods such as mechanical filtration, solvent dewaxing or pressurized filtration.

Refining

The filtered wax is then further refined by removing any remaining impurities, such as colorants and odors. This can be done using various refining processes such as hydrogenation, clay treatment, and activated carbon filtration.

Blending

Finally, the refined paraffin wax is blended with additives, such as colorants, fragrances, and other waxes, to produce the desired properties and characteristics for its intended use.

The exact process used to produce paraffin wax may vary depending on the specific application and quality requirements of the final product. However, the steps outlined above provide a general overview of the production process.

What drives the cost of paraffin wax

The cost of paraffin wax is influenced by several factors, including the price of crude oil, the level of global supply and demand, and production and transportation costs. Here are some of the key factors that drive the cost of paraffin wax:

Crude oil prices

Paraffin wax is a by-product of crude oil refining, and therefore, its cost is closely tied to the price of crude oil. The price of crude oil is determined by global supply and demand factors, as well as geopolitical tensions and other factors that can disrupt oil production and transportation.

Production costs

The cost of producing paraffin wax is influenced by various factors, including the cost of raw materials, labor costs, energy costs, and overhead costs. The cost of producing paraffin wax can vary depending on the location of the production facility, as well as the efficiency of the production process.

Transportation costs

Paraffin wax is produced in various parts of the world, and therefore, transportation costs can be a significant factor in determining the final cost of the product. The cost of transporting paraffin wax can be influenced by various factors, including distance, mode of transportation, and the availability of transportation infrastructure.

Market demand

The level of global demand for paraffin wax can also influence its cost. When demand is high, prices tend to rise, while lower demand can lead to lower prices.

Overall, the cost of paraffin wax is determined by a complex set of factors that are constantly changing. The market for paraffin wax is highly competitive, with several major players operating in the market. The cost of paraffin wax is likely to remain volatile in the coming years, driven by factors such as global supply and demand, geopolitical tensions, and the availability of crude oil.

What types of paraffin wax are there

There are several types of paraffin wax available in the market, each with different properties and characteristics suitable for various applications. The different types of paraffin wax are differentiated based on their melting point, oil content, and other physical and chemical properties. Here are some of the common types of paraffin wax:

Fully refined paraffin wax

This type of wax is the purest form of paraffin wax, with an oil content of less than 0.5%. Fully refined paraffin wax is white and odorless, with a melting point ranging from 58 to 64 degrees Celsius. It is used in a wide range of applications, including candle-making, cosmetics, and packaging.

Semi-refined paraffin wax

This type of wax has a higher oil content than fully refined wax, typically between 1% and 5%. Semi-refined paraffin wax has a lower melting point than fully refined wax, typically ranging from 50 to 60 degrees Celsius. It is used in applications such as crayons, polishes, and coatings.

Microcrystalline wax

This type of wax has a higher melting point than paraffin wax, typically ranging from 60 to 90 degrees Celsius. Microcrystalline wax has a more flexible and elastic texture than paraffin wax and is used in applications such as cosmetics, adhesives, and coatings.

Blended paraffin wax

This type of wax is a combination of fully and semi-refined paraffin waxes, blended to achieve specific properties such as a lower melting point or improved scent retention. Blended paraffin wax is commonly used in candle-making and cosmetics.

Gel wax

This type of wax is a combination of paraffin wax and mineral oil, which results in a transparent, jelly-like material with a lower melting point than traditional wax. Gel wax is used in the production of candles and decorative items.

These are some of the common types of paraffin wax available in the market, each with its unique properties and characteristics suitable for various applications.

Market information on paraffin wax

The global paraffin wax market size was valued at USD 6.36 billion in 2020 and is projected to reach USD 7.87 billion by 2027, growing at a CAGR of 3.1% during the forecast period (2021-2027). The demand for paraffin wax is driven by its use in various industries, including candle-making, packaging, cosmetics, and textiles, among others.

Asia-Pacific is the largest consumer of paraffin wax, accounting for over 50% of the global demand. The region’s high consumption is attributed to its large population and growing industrialization, which is driving the demand for various end-use applications. North America and Europe are the other significant markets for paraffin wax, driven by the demand from the packaging, cosmetics, and candle-making industries.

The paraffin wax market is highly competitive, with several major players operating in the market. Some of the leading companies in the market include ExxonMobil Corporation, Sinopec Corporation, Royal Dutch Shell PLC, Sasol Limited, and Lukoil, among others. The market is characterized by intense competition, technological advancements, and the introduction of innovative products to meet the changing customer demands.

According to https://oec.world/ :

Paraffin wax containing <0.75% oil are the world’s 1605th most traded product.

In 2020, the top exporters of Paraffin wax containing <0.75% oil were China ($489M), South Africa ($191M), Germany ($146M), Malaysia ($99M), and Japan ($54.1M).

In 2020, the top importers of Paraffin wax containing <0.75% oil were United States ($208M), Germany ($151M), Mexico ($143M), Poland ($79.1M), and Brazil ($54.1M).

Which countries produce the most paraffin wax

The top producers of paraffin wax are primarily located in Asia and North America, with China being the largest producer and exporter of paraffin wax. According to recent statistics, China accounts for over 40% of the global production of paraffin wax. Other major producers of paraffin wax include the United States, Germany, India, Japan, and South Korea.

The production of paraffin wax is closely tied to the availability of crude oil, which is the main raw material used in its production. The United States is one of the largest producers of crude oil, and therefore, it also has a significant paraffin wax production capacity. In Europe, Germany is the largest producer of paraffin wax, followed by Spain, Italy, and France.

Overall, the global production of paraffin wax is distributed across many countries, with China being the dominant player due to its large population and industrial base. The production of paraffin wax is expected to continue to grow in the coming years, driven by the increasing demand from various end-use industries such as candle-making, packaging, and cosmetics, among others.

Further information

• Wikipedia for general, history, production and usage information
• PubChem for chemistry and property  information