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China's Paraffin Exports Face Multiple Resistance

Although China has been a big producer of paraffin, exports have been among the highest in the world for years. However, at present, China's paraffin exports face multiple resistance:
1: low-end products
At present, the export of paraffin in our country is greatly hindered. The main reason is that the export of paraffin in our country is mainly low-end products and primary products, the lack of products with high technical content, and the homogenization of products, and it is at a disadvantage in participating in international competition. On the contrary, Russian oil, Shell and other companies have increased their production of paraffin. They have a good international reputation and rich resources, and they can easily be transformed into a strong competitive advantage.
2: unreasonable structure
Total paraffin production in China, total refined paraffin accounted for 40.6 %, semi-refined paraffin accounted for 39.6 %, crude paraffin accounted for 8.6 %, food wax accounted for 2.9 %, soap wax accounted for 6 %, microcrystalline wax accounted for 0.43 %, other wax accounted for 10.47 %. This variety structure has caused a shortage of high melting point and high quality paraffin on the market, while low melting point and semi-refined paraffin wax are surplus. Experts pointed out that the total consumption of microcrystalline wax and paraffin wax should be 1:10, and China's current production of microcrystalline wax less than 600 tons, waiting to increase production.
3: Anti-dumping Duty
Since May 15, 2009, the EU has extended the period of anti-dumping duties on Chinese products for five years and imposed 0 to 60 % of anti-dumping duties on Chinese candle companies. On May 14 this year, at the end of the five-year period, at the request of companies in member states, the European Union initiated an anti-dumping sunset review of candles and similar products originating in China. The export resistance of traditional wax products and paraffin in Europe and the United States has not been eliminated, and the United States, the European Union and other countries and regions encourage the import of paraffin wax and palm wax synthetic wax and its products. Therefore, traditional wax products and paraffin in Europe and the United States will face greater export resistance.
4: Strict Detection
European and American paraffin products on the environmental impact of more and more stringent testing, require companies to add a certain proportion of paraffin wax palm wax. At present, synthetic paraffin, poly wax, membrane products and other paraffin substitutes occupy a certain proportion in different industries, hitting the paraffin market.
To sum up, China's paraffin paraffin overcapacity, heavily dependent on exports, a series of factors will continue to affect the paraffin market, which is not originally needed.

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