Timing is very important when prices change rapidly
Crude oil prices have been very volatile lately due to the situation in Iran among other things, so paraffin wax prices got affected too. However, this has raised a question for many clients that it is not about the lack of the supply but it is more about the timing, that if now is the right time to buy or not.
We at Junda wax see that hesitation is the biggest problem when people think of buying in such a scenario. First, they think the price is too high now and at the same time they think the price would be even higher. So we try to convince the clients not to get carried away by the thought of buying at the absolute lowest point only but to think of the situation that the market has become volatile first. After this one should start thinking of his buying cycles rather than just waiting for the market to change.
1. Your Buying Pattern Should be Your First Step
Every client is different and so is the best way to buy them. We have some clients who are in long-term and steady supply, most of these are candle, board manufacturing, packaging industries; these people should be more of a "buying at regular intervals" kind of approach. Then there are those clients who do their orders only based on projects and it will be very useful for them if they do their transactions in a single, lock-in way.
We at Junda Wax work 24/7 which is why we can plan to match order cycles with shipments and production runs. As a supplier, we feel strongly that it is better for customers to identify their specific consumption patterns clearly and only then decide if they want to buy; going after market trends blindly is not an option. In fact, the right strategy is usually much more important than the perfect market timing.
2. Always Make Sure that the Supply Is Stable
It has been seen that ordinarily, customers look mostly at the price factor when the market is doing good; however, during times of volatility, even the most careful production will be affected if there is no availability of the inputs. Imagine the losses if you have the orders ready but no raw materials! These losses will be way more than the rise in raw materials price.
Junda Wax has long-time supply chains for raw materials and a large-scale production capacity, so we can promise you the uninterrupted delivery of the orders. Given today's environment, we are telling our customers to first find a supply they can trust and only then, think of buying at a more cost-effective manner. Most definitely, this point is one of the major ones for customers who are doing export orders, or who have production plans for the long run.
3. Buying in Several Installments Is a More Secure Way
Once the prices become volatile, a single, large order at one go can be a big risk because it is not really known whether the current price is a market peak or just a temporary one. On the other hand, if you divide your buying in several phases, you will be less exposed to the effect of price changes. We sometimes work with our customers to organize the phased deliveries in such a way that they get aligned with their monthly or quarterly consumption needs. Junda Wax, on its part, supports flexible production scheduling so we could also work out the clients procurement cycles indoors. Seeing things from a supplier's point of view, purchasing in lots is really more about making risks manageable rather than saving money.
4. An Important Thing Is Also to Choose the Right Grade of Paraffin
While in a situation of prices going up, the paraffin wax grade is the one thing that most people go without noticing. For example, if the wrong grade is bought, one with a melting point which is not suitable or the one which is not a good match for the application, it can in use lead to more cost or worse, to degraded quality of the product. Junda wax is prepared to help a client who is looking for support in paraffin grade selection to reach a perfect paraffin wax specification for the application by experimenting with a range of paraffin wax products that we manufacture. We usually tell our clients that the first thing they should do is to get the use case to be figured out then to pick the correct product specifications.
Capacity for Supply is One of the Things That Cannot Be Neglected
The fluctuations often bring a flood of low-price offers to the market, however, these prices might neither be sustainable nor will they be free of supply problems. Junda Wax is most focused on building long-term relationships, something a company is able to support with a stable supply of raw materials, steady production capacity, and a mature export and delivery infrastructure. Suppliers can only really recommend that clients take into account all the capabilities of the partner before performing the selection, and not just a price point alone.
Procurement Is Not About Price Forecasting But Risk Management
Under the conditions of this market one cannot say with confidence when the prices of paraffin wax will peak or reach their bottom; still, one can always adjust the procurement strategies proactively. Helping clients to turn the complicated market fluctuation into an easy, practicable, and barely disruptive procurement rhythm is the main reason why we exist at Junda Wax. Besides, we encourage buyers to focus their attention on the following three major things: first, the clear definitions of usage requirements; second, controlling the rate of procurement; and third, prioritizing supply stability. With these three things done right, even in a volatile market a business can operate with a rather stable level. So, if you are in the phase of planning your next paraffin procurement, do not hesitate to provide us with your requirements; through our experience in production and supply, we will be able to help you make more informed and fruitful purchasing decisions.
