HS Code:
Paraffin wax containing by weight less than 0.75 percent of oil (HS Code: 2712.20) is a highly refined petroleum wax used in various applications, including candle making, cosmetics, pharmaceuticals, and as a coating material in packaging. This category of paraffin wax is distinguished by its low oil content, which ensures higher purity and better performance in specific industrial uses. It is a critical raw material in industries requiring consistent quality and minimal impurities.
Total Trade Volume
USD 1.2 billion
Data from 2022
Source
United Nations Comtrade Database
USD 350 million
29.2% of total trade of total trade
Increasing
USD 200 million
16.7% of total trade of total trade
Stable
USD 150 million
12.5% of total trade of total trade
Increasing
USD 100 million
8.3% of total trade of total trade
Stable
USD 80 million
6.7% of total trade of total trade
Decreasing
Average Rate
5.2% ad valorem
Highest Rate
12% (applied by certain developing countries to protect local industries)
Lowest Rate
0% (under free trade agreements such as EU internal trade or USMCA)
Growing demand in cosmetics and pharmaceutical industries
Increased imports in regions with strong manufacturing bases for personal care products, driving trade volume growth by approximately 6% annually
2021-2022
Shift towards sustainable alternatives
Emerging competition from bio-based waxes is slightly reducing demand in environmentally conscious markets like the EU, with a potential 3% market share loss projected by 2025
2022
Rising production costs due to fluctuating crude oil prices
Export prices have increased by 8% over the last two years, impacting affordability in price-sensitive markets
2020-2022
The European Union introduced new regulations in mid-2022 requiring paraffin wax imports to meet stricter carbon footprint standards, affecting exporters from high-emission countries.
July 2022
Potential reduction in imports from non-compliant countries by 10-15%, with increased costs for certification and compliance.
China announced the opening of two new large-scale paraffin wax refineries in late 2022, boosting its export capacity significantly.
November 2022
Expected to increase global supply by 5%, potentially lowering prices but intensifying competition for smaller exporters.
Under the USMCA agreement, tariffs on paraffin wax between the US, Canada, and Mexico were reduced to 0% as of January 2023, facilitating smoother trade flows in North America.
January 2023
Trade volume within North America is projected to rise by 7% in 2023 due to cost savings and streamlined customs processes.