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The market for paraffin is getting better
Jan 23, 2019

The current mainstream model 58# half-price is 6481.25 yuan / ton, up 0.39% last week, down 5.61% year-on-year; as of this Thursday, the total inventory of refineries was about 79,100 tons, down 17.17% from last week. This week, the paraffin wax market has rebounded and the refineries of CNPC have successively ended the insured price. The Sinopec price has been adjusted accordingly, and the market trading atmosphere has gradually strengthened. Driven by the psychology of buying up and not buying down, the enthusiasm of merchants to purchase increased, and the contradiction between supply and demand in the market eased.

 

Impact on raw materials: Next week's oil price will go out of the unilateral market and be alert to the risk of a sharp fall. US crude oil production continues to increase, combined with the current low season of consumption, the refinery's operating load is low, and the inventory of refined oil products is under pressure. This is a big bearish effect in the recent oil market. The market is paying attention to the reduction of production in the country of production reduction and the subsequent IEA report. The bulls continue to speculate that it is difficult to continue to boost the oil price. In the case of a long period of consolidation after the previous rise, the market optimism has calmed down and objectively examined the downward pressure on the economy. Oil prices are likely to fall sharply next week, and there is no positive support for the paraffin market.

 

 

 Supply side impact: refinery normal heavy volume, of which Daqing Petrochemical limited sales, refinery inventory decreased significantly. At present, most refinery plants operate smoothly, with Jingmen Petrochemical shut down and overhauled, and the market supply has declined slightly.

 

The impact of demand: 1. The current market conditions have improved, driven by the risk of buying up and not buying down, the stocking behavior has increased, and domestic demand has improved. 2. In terms of the international market, the volume of goods received has also increased. 3. Substantial demand for downstream candles, plates and other industries has not increased. Overall, the demand for paraffin in the market is weak.

 

  Market mentality impact: 1. Market policy changes, business mentality improved. 2. The merchants buy up and do not buy down the psychological increase, the purchase enthusiasm increases. 3. As the holiday approaches, traders increase their psychological psychology. On the whole, the market mentality has improved.