Paraffin, also known as crystalline wax, is a hydrocarbon mixture mainly composed of solid alkanes. It usually appears in the form of a pale yellow or white semi-transparent solid, odorless and tasteless, with a greasy feel. It is soluble in most solvents such as benzene, ether, chloroform, xylene, petroleum ether, and carbon disulfide.
From the perspective of the industrial chain, the upstream of the paraffin industry mainly consists of suppliers of raw materials and processing equipment such as petroleum, shale oil, and asphalt mineral oil. The midstream is the production and supply stage of paraffin. The products can not only be classified into soft wax (below 45℃) and hard wax (45-60℃) based on their melting points, but also into crude paraffin, semi-refined paraffin, refined paraffin, etc. according to their fineness. Downstream, paraffin has excellent plasticity, ductility and electrical insulation properties, and is widely used in multiple fields such as food, textile, construction, agriculture, plastics, coatings and cosmetics.
In recent years, driven by strong demand, the global paraffin market has developed rapidly. Specifically, in 2023, the global paraffin market size reached 43.36 billion yuan. It is also expected that during the period from 2024 to 2028, thanks to the gradual expansion of application scope and the accelerated rise of emerging markets, this figure will maintain an average annual compound growth rate of nearly 4%, and is likely to exceed 52.5 billion yuan by 2028.
Brazil is one of the paraffin markets with great investment potential in the world. According to the "2024-2028 Brazil Paraffin Market In-depth Research and Analysis Report" released by Xinsijie Industry Research Center, in Brazil, the application of paraffin is mainly concentrated in the fields of food, textiles, construction, agriculture, etc. For instance, in the textile sector, the textile industry is a major traditional industry in Brazil and holds an important position in the national economy. The competitiveness of textile and garment products in the international market has also increased. According to the data released by the National Bureau of Statistics, in 2021, Brazil's textile and garment export value reached 1.064 billion US dollars, mainly exported to neighboring countries and regions such as Argentina, Paraguay and the United States. Paraffin wax is a textile material with excellent softness and water resistance. It can not only be used for lubrication and waterproof treatment of textiles, but also enhance the waterproof effect. With the vigorous development of Brazil's textile industry, the demand for its application continues to increase.
However, at present, the domestic paraffin production capacity in Brazil is still at a relatively low level, making it difficult to fully meet the growing domestic application demands, which in turn leads to a significant reliance on imports in the market. According to the statistics of the General Administration of Customs of China, from January to May 2024, the cumulative export volume of paraffin from China reached 270,100 tons. Among them, American countries such as Mexico, the United States, and Brazil, Asian countries such as Vietnam and Myanmar, and European countries such as Poland and the Netherlands are all popular export destinations for Chinese paraffin.
Export situation: China's paraffin wax export volume holds an important position in the global market. The main export destinations include the United States, Europe, Japan, South Korea, Southeast Asia and other countries and regions. In recent years, China's paraffin wax export volume has maintained a growth trend. In 2023, the main export destinations of China's paraffin wax industry were widely distributed, with Mexico and the United States accounting for the largest share, followed by Vietnam, Poland and Brazil. With the advancement of the "Belt and Road Initiative", the share of Chinese paraffin products in emerging markets such as the Middle East and Africa has gradually increased.
Analysts from Newsijie Brazil Market stated that paraffin wax has excellent plasticity, ductility, and electrical insulation properties, and is widely used in multiple fields such as food, textiles, construction, and agriculture. Brazil is a significant global demand market for paraffin wax. However, in terms of supply, due to its relatively low local production capacity, its market still relies on overseas imports. China is an important source of imports for it, and Chinese paraffin wax suppliers have greater opportunities to enter the Brazilian market.
