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2018 World Paraffin Development Status and Future Trends


2018 World Paraffin Development Status and Future Trends

In 2017, the world's paraffin wax production and sales basically showed a steady trend, and the total consumption is about 3.5 million tons. From the trend of the world's total consumption of paraffin, from 1993 to 1998, the consumption of paraffin in the world is on the rise, with an average annual growth rate of 1.4%. 

In 1998, the world's paraffin consumption was 3.82 million tons, the highest value in the past 20 years. Since 1998, with the reduction of paraffin-based crude oil resources and the development of paraffin substitutes, the consumption of paraffin wax has declined slightly. It is reported that the world paraffin consumption in 2017 is only equivalent to 92.1% in 1998.

The United States is the country with the largest consumption of paraffin, accounting for 30% of the world's total paraffin consumption. In the past 10 years, the annual consumption of paraffin in the United States has remained above 1 million tons. It can be said that the changes in the consumption of paraffin in the United States affect the world paraffin consumption market and also represent the changing trend of the world paraffin market.

2017 Paraffin Wax Regional Consumption Ratio(%)

America

31%

China

26%

Europe

29%

South America

6%

Southeast Asia

4%

Other regions

4%

Total

100%

Americas Market: In 2017, the local production of paraffin wax in the United States is about 300,000 tons, down 22.8% compared with 388,600 tons in 2010, mainly due to the parking of the two largest paraffin units in the United States; the United States is the largest consumption of paraffin. The country accounts for 37% of the world's total paraffin consumption. In the past 10 years, the annual consumption of paraffin in the United States has remained above 1 million tons. 

As a traditional paraffin demand country, due to changes in the refining industry, the demand for paraffin in the United States has grown slowly in recent years. It is estimated that in 2018, the demand for paraffin in the United States will increase by 2%. From 2003 to 2010, the annual growth rate of paraffin in the United States was 8.9%. 

In 2017, South America consumed about 200,000 tons, 60% of which was used in Brazil. There are nearly 1,100 candle factories in South America, of which nearly 800 in Brazil; about 210,000 in Central America. Tons, 80% are consumed by Mexico. Mexico has more than 70% of the population in the region, and more than half of the paraffin consumed is used to make candles.

Asian market: In addition to China, the Asian market is mostly paraffin importing countries, especially in India and Southeast Asia. The demand for paraffin is growing, and China's export share is increasing because of the competitive price and freight advantages. 

paraffin wax production.jpg

In 2017, the demand for paraffin in Southeast Asian countries exceeded 600,000 tons, and there is still a large supply gap. It is foreseeable that China has a broad prospect in the paraffin wax market in Southeast Asia. In recent years, the amount of Chinese paraffin wax exports to Southeast Asia has been increasing. 

In 2006, due to the US anti-dumping duties on Chinese candle products, the candle factories in Guangdong moved to Vietnam, Thailand and other places, and the demand for paraffin in the Pearl River Delta region dropped sharply. On the contrary, the volume of trade along the borders of Yunnan and Guangxi has risen rapidly.

 According to relevant analysts, the current market capacity in the Pearl River Delta region is 120,000 tons/year, and the demand for border trade in Yunnan and Guangxi is 100,000 tons/year. 

From the perspective of China's paraffin export, the third place is the Southeast Asian market. So Chinese paraffin wax manufacturer like Ffaith Industry Group, first-agent of PetroChina has increased market development effort in Southeast Asian countries.

paraffin wax manufacturers.png

In summary, although the current US economy has recovered, due to the decline in domestic production and the rapid development of alternatives, the consumption of paraffin continues to decline slightly; the European economy is in a downturn, and the consumption of paraffin will also show a steady decline. 

While the Latin American and Asian markets, especially India and Southeast Asia, are expected to maintain steady growth, it is expected that the future consumption of the world paraffin market will remain stable and moderate, and emerging Asian and African countries are worth looking forward to.

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