Home>News>The contradiction between supply and demand in the paraffin market is intensifying, and high-end has become its development trend
August 23, 2022
The contradiction between supply and demand in the paraffin market is intensifying, and high-end has become its development trend
Paraffin is a hydrocarbon mixture extracted from distillates of petroleum, shale oil or other bituminous mineral oil. Paraffin Wax is also known as crystalline wax. It is white or yellowish translucent flake or needle like crystal in appearance. Its main component is solid alkanes, odorless and tasteless. It is mainly used to manufacture candles, higher fatty acids, higher alcohols, ointments, electrical insulation materials and other products. Its downstream applications involve medicine, cosmetics, electronics and electrical, construction and other fields.
According to the report on the risk investment situation and investment and financing strategy guidance of the paraffin industry in 2022-2026 released by the Industrial Research Center, China is a large country in paraffin production and consumption. From 2014 to 2019, the output of the paraffin industry in China showed an upward trend. Affected by the COVID-19 epidemic, the output of the paraffin industry decreased in 2020. However, with the recovery of the domestic economy, the demand for paraffin was released, and the industry output rebounded. In 2021, The output of China's paraffin industry increased to 1.624 million tons, an increase of nearly 13 percentage points compared with 2020.
In terms of consumption market, with the development of aerospace, microelectronics, optoelectronics and other industries, the demand for paraffin market has increased steadily. However, since 2018, due to the impact of Sino US trade war, COVID-19 and other factors, the consumption of paraffin has been in a downward trend. The increase in output and insufficient domestic demand have led to the supply exceeding demand in the paraffin Market, and the contradiction between supply and demand in the market has become increasingly prominent. Paraffin is a high energy consumption and high pollution industry. In recent years, with the increasingly strict environmental protection supervision and the acceleration of energy conversion, the backward capacity of the paraffin ind
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