The contradiction between supply and demand in the paraffin wax market intensifies and high-end has become its development trend

Paraffin wax is a mixture
of hydrocarbons extracted from a distillate of petroleum, shale oil or other bitumen mineral oil.
Paraffin wax, also known as crystalline wax, appearance is white or light yellow translucent flake or needle-like crystal, the main component is solid alkanes, odorless and tasteless, mainly used in the manufacture of candles, advanced fatty acids, advanced alcohols, ointments, electrical insulation materials and other products, downstream applications involve medicine, cosmetics, electronic and electrical, construction and other fields
.

According to the "2022-2026 Paraffin Industry Venture Capital Situation and Investment and Financing Strategy Guidance Report" released by the Industry Research Center, China is a major paraffin production and consumption country, 2014-2019, China's paraffin wax industry output showed an upward trend, affected by the new crown pneumonia epidemic, the paraffin wax industry output decreased in 2020, but with the recovery of the domestic economy, paraffin demand was released, and the industry's output rebounded, in 2021, The output of China's paraffin wax industry increased to 1.
624 million tons, an increase of nearly 13 percentage points
compared with 2020.

In terms of consumer market, with the development of aerospace, microelectronics, optoelectronics and other industries, the demand for paraffin wax market has grown steadily, but since 2018, affected by the Sino-US trade war, the new crown epidemic and other factors, paraffin wax consumption is in a downward trend, production rise, insufficient domestic demand has led to oversupply in the paraffin market, and the contradiction between market supply and demand has become increasingly prominent
.
Paraffin wax is a high energy consumption, high pollution industry, in recent years, with the increasingly strict environmental protection supervision, and the acceleration of energy conversion, paraffin wax industry backward production capacity continues to clear, the market supply and demand contradiction problem has been alleviated
.

In order to expand the market and find a way out, domestic enterprises have opened up paraffin wax overseas markets, in this context, China's paraffin wax export scale has gradually expanded
.
According to the data of the General Administration of Customs of China, in 2021, China's paraffin wax exports will be 801,900 tons, and imports will be 20,300 tons, a year-on-year decrease of 6%.

From the perspective of export distribution, China's paraffin wax is mainly exported to the United States, Mexico, Vietnam and other countries
.

There are many types of paraffin, including liquid paraffin, microcrystalline paraffin, vinyl chloride paraffin, chlorinated paraffin, semi-refined paraffin and other types
.
As a global paraffin wax production country, China has a large number of paraffin wax production enterprises, including Sinopec, PetroChina, Fushun Hengyi Petrochemical, Hengshui Xinye Chemical, etc.
, and the market competition is fierce
.
At present, China's paraffin industry still has unreasonable structural problems, overcapacity at the middle and low end, high-end products such as special paraffin wax still rely on imports, and the paraffin industry structure needs to be adjusted
urgently.

Industry analysis

People said that China is a large country of paraffin wax production and consumption, in recent years, with the development of the downstream market is becoming more and more mature, the growth rate of paraffin wax consumption in China has slowed down, and the contradiction between supply and demand in the paraffin market has intensified
.
At present, China is in a critical period of transformation from a manufacturing country to a manufacturing power, and the demand for high-end paraffin wax in the domestic market is rising, in this context, high-end has become one of the important trends in the development of
paraffin wax market.