Availability of Substitutes of Polyethylene Wax to Hamper Global Market
Many substitutes are available for polyethylene wax such as paraffin wax, micro wax, Carnauba wax, soya wax, Candelilla wax, and palm wax
Polyethylene wax can be replaced with organic wax. Other waxes are cheaper than polyethylene wax. Most specialty waxes are organic waxes that are used in a wide range of everyday products.
Availability of substitutes such as gas-to-liquid (GTL) wax for various applications is expected to hamper the polyethylene wax market in the near future
Volatility in raw material prices affects profit margins of polyethylene wax manufacturers. This, in turn, is likely to hamper the market. Volatile crude oil price trends, along with stiff substitute threat by Fischer-Tropsch (FT) wax is likely to negatively impact the global polyethylene wax market over the next few years.
Fischer-Tropsch wax is synthesized from natural gas in high-temperature reactors and under specific conditions using catalysts. The Fischer-Tropsch technology can provide liquid fuels at prices competitive with petroleum. Thus, availability of substitutes for polyethylene wax is expected to hinder the global polyethylene wax market in the near future.
Post time: Feb-17-2022