Industry data clearly indicates that the U.S. is not a core export market for China’s Paraffin wax, a characteristic that provides Fushun Paraffin Wax with a solid foundation to avoid the impact of the new policies. From 2021 to 2024, China’s Paraffin wax exports to the U.S. dropped from 124,600 tons to 42,200 tons, with its proportion declining year by year. From January to August 2025, the proportion of exports to the U.S. further fell to 4%. Fushun Paraffin Wax, however, has long aligned its export strategy with high-growth markets, rather than over-relying on the U.S. market.
For years, we have closely followed industry trends and prioritized the development of high-potential markets such as Mexico and Vietnam. Between 2022 and 2024, the proportion of China’s Paraffin wax exports to Mexico and Vietnam rose to 25% and 10% respectively. Concurrently, Fushun Paraffin Wax has seen a parallel growth in its market share in these two key markets. By virtue of consistent product quality and efficient supply chain services, we have become the preferred partner for numerous local customers. Currently, exports to the U.S. account for less than 3% of Fushun Paraffin Wax’s total exports. Short-term fluctuations in the U.S. market have a negligible impact on the overall operation of our enterprise, and the stability of our core markets provides strong support for our development.
In the face of short-term challenges in the maritime logistics sector, Fushun Paraffin Wax has established a multi-dimensional response strategy. Through supply chain optimization and resource integration, we effectively reduce cost volatility and ensure delivery efficiency—critical for maintaining trust with our global Paraffin wax customers.
In terms of logistics cooperation, we have established long-term strategic partnerships with several leading shipping companies. This allows us to flexibly adjust shipping routes and vessel resources, avoiding additional costs through a combination of "optimized routes and transit coordination". For instance, in relation to the Southeast Asian and Latin American markets, we secure stable shipping capacity in advance to keep sea freight costs manageable. Additionally, through bulk transportation and long-term contracts, we further reduce unit logistics costs, preventing short-term fluctuations in shipping rates from affecting our customers' procurement costs for Paraffin wax.
In risk management, Fushun Paraffin Wax has built a comprehensive supply chain monitoring system. This system tracks logistics dynamics and policy changes in real-time, and we proactively communicate delivery timelines with customers to ensure on-time order fulfillment. Furthermore, we optimize our inventory layout by setting up transit warehouses near core markets. This not only shortens delivery cycles but also enhances our responsiveness to customers, using efficient services to offset uncertainties in the external environment for our Paraffin wax supply.
Changes in the external market have further strengthened Fushun Paraffin Wax’s strategic direction of focusing on technological innovation and upgrading its product structure. In recent years, China’s Paraffin wax industry has accelerated its pace of import substitution in high-end products—and Fushun Paraffin Wax has long been positioned in this track. Through technological breakthroughs, we enhance product added value and unlock new growth opportunities in the global Paraffin wax market.
In terms of R&D investment, we continuously increase efforts in the research and development of high-end products such as high-melting-point specialty wax, food-grade Paraffin wax, and pharmaceutical-grade Paraffin wax. We have established a professional technical team that has overcome a number of key technical challenges. Currently, the proportion of our high-end Paraffin wax production capacity has increased to 30%, and the product performance has reached the international advanced level. These products can replace imported alternatives and meet the needs of high-end fields such as automotive, electronics, pharmaceuticals, and food. For example, our high-purity food-grade Paraffin wax has passed international food safety certifications and has successfully entered the food packaging markets in Southeast Asia and Europe. Our high-melting-point specialty wax is widely used in automotive coatings, electronic component packaging, and other fields, winning high recognition from customers.
In market expansion, Fushun Paraffin Wax takes high-end Paraffin wax products as a breakthrough to actively develop high-end customer groups in non-U.S. markets. Relying on technological advantages and customized services, we have established cooperation with a number of well-known international enterprises, and the proportion of high-end product exports has increased year by year. In the future, with the growth of domestic demand for high-end Paraffin wax and the expansion of international markets, Fushun Paraffin Wax will further expand its high-end product capacity and become a core supplier in the global high-end Paraffin wax field.
Regardless of changes in the market environment, Fushun Paraffin Wax always places customer value at the forefront. Through stable quality, flexible services, and transparent cooperation, we establish long-term win-win cooperative relationships with customers in the global Paraffin wax industry.
In response to the needs of customers in different industries, we provide customized solutions. For example, we optimize the melting point and compatibility of Paraffin wax for plastic processing enterprises, and adjust the dispersibility and stability of our products for coating enterprises. These efforts help customers improve production efficiency and reduce costs. At the same time, we have established a fast-response customer service system to promptly solve problems encountered by customers in the process of product use and procurement, ensuring customer satisfaction with our Paraffin wax products and services.
Faced with the current market pattern, Fushun Paraffin Wax is more willing to work hand in hand with global customers. Through stable supply, high-quality Paraffin wax products, and efficient services, we will jointly address external challenges and seize growth opportunities. We believe that with solid technological accumulation, a stable market layout, and strong supply chain resilience, Fushun Paraffin Wax will achieve greater development in the industry transformation and contribute to the stability and upgrading of the global Paraffin wax industry.
In the future, Fushun Paraffin Wax will continue to be driven by innovation, centered on customers, deepen its presence in core markets, expand into high-end fields, break through adversity in the complex market environment, build a more competitive Paraffin wax brand, and create a sustainable growth future with partners.
