Petroleum, Natural and Synthetic Waxes: A Global Strategic Business Report
San Jose, California (PRWEB) October 01, 2012
Follow us on LinkedIn – Waxes are one of the foremost products developed by mankind. Waxes play a prominent role in a range of household products, from matches and candles to pharmaceuticals, cosmetics, and polish. Based on their source, waxes are broadly classified into petroleum, natural and synthetic waxes. During the global recession, both demand and supply of wax were adversely affected. The market also witnessed a decline of traditional supply sources due to variation in lubrication standards as well as the shutting down of Group I base oils plants in various regions. The market, however, witnessed recovery during the second half of 2009 and is expected to grow steadily along with the recovery of the global economy. Global wax production is currently driven by GTL technology, which converts natural gases into liquid fuels. The technology is capable of commoditizing the wax market by providing high-quality wax at a low cost. Other key factors that are expected to spearhead growth in the marketplace include the introduction of various synthetic formulations and the growing preference for vegetable waxes. Additional drivers for the global wax market include increased demand for natural waxes, which resulted from an increase of customer preference for various environment-friendly products.
Despite witnessing significant increase in demand over the years, growth in the global waxes market is being largely restricted due to the existence of various supply constraints. For instance, despite the fact that petroleum waxes continue to be the leading segment in the marketplace over the years, the segment has been witnessing a gradual decline in supply. Since the late 1990s, petroleum wax production has plummeted drastically in the US and European regions. The use of hydrodewaxing compared to solvent dewaxing process for wax production resulted in a decline in the supply of waxes in North America. As a result, many of the Group I refiners are being compelled to shut down or upgrade to advanced lubricant processing technologies to address new performance requirements for finished lubricants. The rationalization and closure of Group I base oil plants is continuing at an alarming rate causing shrink in wax supply. The supply shortage in petroleum waxes, and increasing crude oil prices, is expected to have an adverse effect on the overall global wax supply in the upcoming years.
Growth in synthetic waxes, the second largest wax category, continues to be fueled by a marked shift towards more expensive synthetic waxes from commodity waxes. Advancements in polymer technology are also expected to boost demand. The fast set time, superior heat resistance, and higher melting point of synthetic waxes also contribute to the market growth. Within the synthetic wax segment, Fischer-Tropsch (F-T) waxes is expected to post significant growth through 2018, primarily driven by the increasing use of waxes in adhesives, paper, and coatings markets. On the other hand, encouraging demand is also being witnessed for natural waxes, spurred by consumer preference for products that are environmentally or nature friendly. Manufacturers are increasingly using natural materials, such as palm oil, soybean oil, beeswax, and tallow to meet the potential demand for natural waxes. Besides, the increasing prices of feedstock and receding availability of paraffin and petroleum waxes are also paving way for natural waxes.
The US represents the largest market for natural and synthetic waxes, as stated by the new market research report on Petroleum, Natural and Synthetic Waxes. However, Asia-Pacific now occupies center stage in the global waxes market, with production capacity in the region far exceeding the demand. Within the region, China and India are key producers with significant capacity additions in the recent past. Production of wax in China far exceeds domestic requirements. As a result, China has a significant surplus of wax and enjoys substantial export business through aggressive pricing strategies. China is the largest exporter of petroleum wax to the world’s major regional markets.
Key players profiled in the report include BASF SE, Blended Waxes Inc., CITGO Petroleum Corp., Clariant AG, ExxonMobil Corp., Koster Keunen Holland BV, Lubrizol Corp., Micro Powders Inc., Momentive Performance Materials Holdings Inc., Paramelt BV, Petroferm Inc., Romonta GmbH, SINOPEC Beijing Yanshan Company, Strahl & Pitsch Inc., TH.C. TROMM GmbH, and The International Group Inc., among others.
The research report titled “Petroleum, Natural and Synthetic Waxes: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of the waxes market, current market review, demand-supply scenario, future prospects, key growth drivers, current market trends and issues, review of different types of waxes, the GTL technology, new product launches, recent industry activity, profiles of major and niche global and regional market players. The report analyzes market data and analytics in terms of value (US$ million) for the years 2010 through 2018 across various regional markets, including the US, Canada, Japan, Europe, Asia-Pacific, the Middle East, and Latin America. Product segments analyzed include Petroleum and Mineral Waxes, Natural Waxes, and Synthetic Waxes.
For more details about this comprehensive market research report, please visit –
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.
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