Wax production in the balance says Kline
Petroleum wax production is declining globally as synthetic, animal and vegetable alternatives battle to take control of the market.
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Wax used in candles Image: L.C.Nøttaasen |
According to the latest Kline report, "Global Wax Industry 2010:Market Analysis and Opportunities", petroleum wax production is in decline as a result of external pressures from regional base stock quality and rising crude prices.
However, there is some way to go before petroleum wax is overtaken by its competitors. According to Kline, petrol-based wax products still dominate 85% of the market, although this is the first time in several decades that this had dropped below 90%.
Wax alternatives, predominently synthetics with an 11% share of the global market and vegetable-based waxes, are the main contenders to replace petroleum waxes. The main use of wax is for candles, as well as board sizing, surface and health applications - the latter two being the fastest growing market segments.
With the rapidly diminishing supply of Group I base oils, petroleum wax supplies particlarly from North America and Western Europe has shrunk significantly according to the report, with China no longer filling the gap as it too moves away from Group I to Group II and III oils to supply its growing performance lubricants demands.
