The global Paraffin Wax market displayed contrasting price movements during the first half of December 2024. The price of Paraffin Wax remained flat to soft in the North American market, however, it surged in the European and Asian markets, influenced by regional dynamics and external factors such as freight costs and shipment delays.

In North America, the price of imported Paraffin Wax remained soft to stable. This price trend occurred despite steady demand from key downstream sectors, including cosmetics and candle manufacturing. The primary driver behind the declining price of Paraffin Wax was a reduction in freight charges and the influx of lower-cost imports from overseas markets. Shipping container rates from East Asia and China to the United States remained stable to slightly lower compared to the previous week, even as the global average shipping rate saw a 6% increase. This softness in freight costs encouraged traders to stockpile inventories of various commodities including Paraffin Wax in anticipation of future demand. However, industry experts caution that freight rates along the Transpacific Trade route may rise in the coming weeks due to the anticipated International Longshoremen’s Association (ILA) port strike in January 2025 and a surge in shipments as businesses rush to pre-empt the disruption.

Conversely, imported Paraffin Wax prices in South Korea continued their upward trajectory, driven by higher import costs and significant delays in overseas shipments. The ongoing pre-Lunar New Year cargo rush, exacerbated by adverse weather conditions, has caused severe congestion at major Asian ports such as Shanghai, Busan, and Ningbo. Berthing delays of up to five days have been reported, disrupting supply chains. Despite modest demand from cosmetics and candle manufacturers, the constrained supply due to shipment disruptions widened the supply-demand gap, supporting price increases in the Korean Paraffin Wax market.

Similarly, the European market witnessed a surge in Paraffin Wax prices during the week under review, mirroring the upward trend seen in South Korea. The price hike was fuelled by increased import costs and shipping delays arising from port congestion in Asia. Market insights indicate that a pre-Lunar New Year cargo rush, compounded by adverse weather conditions, has led to severe congestion at major Asian ports. This congestion has resulted in berthing delays of up to five days, affecting key ports such as Shanghai. The extent of the delays varies depending on the container line, as reported by shipping executives and forwarders. While demand of Paraffin Wax from downstream sectors remained consistent, the tightened supply dynamics propelled Paraffin Wax prices upward.

According to ChemAnalyst, Paraffin Wax prices are projected to decrease in the coming weeks. This anticipated decline is primarily attributed to end-of-year destocking activities, where businesses aim to clear excess inventory before the year's close. As a result, demand is expected to soften, while an influx of surplus Paraffin Wax in the market will create temporary oversupply, putting downward pressure on prices.