I. Industry Overview
Paraffin wax, also known as crystalline wax, is soluble in non-polar solvents including gasoline, carbon disulfide, xylene, ethyl ether, benzene, chloroform, carbon tetrachloride, and naphtha, but insoluble in polar solvents such as water and methanol.
II. Industry Policy Landscape
The Chinese government actively promotes energy structure reform, reducing reliance on fossil fuels like coal and petroleum. This has imposed stricter environmental and technical requirements on the paraffin wax industry, driving enterprises toward technological upgrades and cleaner production. As a byproduct of the petrochemical industry, paraffin wax production and supply are influenced by national petroleum policies. The government encourages petrochemical enterprises to enhance production efficiency and optimize resource allocation. Recent years have seen consecutive policy releases to support China's paraffin wax industry development, including circular economy initiatives and refining capacity optimization targets.
III. Industry Supply Chain
1. Supply Chain Structure
China's paraffin wax supply chain comprises three tiers:
Upstream: Extraction and refining of raw materials (crude oil, shale oil, asphalt mineral oils)
Midstream: Refining and processing into various paraffin products (microcrystalline wax, liquid paraffin, polyethylene wax, semi-refined paraffin, chlorinated paraffin - CPW)
Downstream: Application in end products (candles, waterproofing agents, ointments, electrical insulation materials)
2. Downstream Applications
China's paraffin wax consumption structure is dominated by candle production (primary sector), followed by building panels, plastic additives, and packaging. The candle sector highlights paraffin's role in everyday commodities, while panel and plastic additive demand demonstrates its importance in construction and plastics industries. Packaging applications underscore its critical function in product preservation. This diversified consumption drives paraffin's growth across multiple industries.