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Procurement Market Intelligence Report

Paraffins
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Paraffins?

What is the average price of Paraffins?

This procurement report includes pricing information to help you purchase Paraffins. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.

Has the price of Paraffins been rising or falling?

Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.

I’m not ready to purchase Paraffins yet. Will I pay more if I wait too long?

We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.

What other costs are associated with purchasing Paraffins?

Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Paraffins with a reduced risk of unexpected costs.

See how we display average pricing information, trends and market data.

Find the vendor to meet your needs

Where can I purchase ?

ProcurementIQ estimates that there are about 700 suppliers providing paraffin wax products to the domestic market. There are high capital costs and barriers to entry in operating petroleum refineries. The additional competition from imports makes it harder for smaller vendors to compete domestically. As a result, the top four suppliers... Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?

Experience and Expertise

How long have you provided these products to your longest-tenured client?

What qualifications does your staff have and what measures do you take to keep those qualifications up to date?

What industry do you most commonly supply this product for?

To what extent will ordering multiple products from your firm allow me to save on costs?

What is your repeat business rate for businesses in my industry and how does that compare to your overall rates?

Supply Chain Risk

Over the past three years, what percentage of your revenue has been dedicated to raw input materials? How has that changed?

Has the availability of raw materials tightened due to the coronavirus outbreak?

Over the past three years, what percentage of your revenue has been dedicated to labor?

How have fluctuations in input prices affected the prices of your products during the past three years?

How do you mitigate sudden price increases in raw materials?

When input prices rise, how much of the cost is absorbed by you and how much is passed onto buyers?

How, if at all, has your supply chain been affected by import tariffs levied in 2018?

Regulation

How do you manage regulatory change? Do you have regulation advisers or methods to track regulation?

How have changing regulations influenced your pricing now and how will the changes affect prices over the life our proposed agreement?

What ongoing training procedures do you provide for your staff?

Have you ever been found to be noncompliant with regulatory frameworks?

Amid widespread health concerns during the COVID-19 pandemic, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?

Cost Containment

How has the high level of volatility in crude oil prices adversely affected your supply? Revenue?

Have you ever experienced supply disruptions? If so, how did you ensure that your clients received their required volume of paraffin on time?

Assuming you have established supply contracts, what steps have you taken to mitigate considerable fluctuation in prices?

How have declining crude oil prices affected your production volumes?

Demand

Do you monitor the level of demand from consumer goods markets, such as candle and cosmetics markets?

Do you adjust your level of production in accordance with the expected level of demand?

What proportion of your revenue is derived from the candle manufacturing industry? Cosmetics? Packaging?

What other downstream markets contribute to your revenue?

Which market do you consider your expertise and why?

Are you experiencing fluctuations in demand as a result of the coronavirus outbreak? What measures are you taking to handle increased/reduced demand?

Supply Contracts

Do you have established contractual agreements with raw material suppliers? If so, do you have a number of suppliers to choose from?

What leverage do you have during the negotiation process for upstream contracts? How do you protect yourself against sudden price increases in raw materials?

Do you source materials with high exposure to market disruptions resulting from the coronavirus? How are you coping with these disruptions?

If price increases should occur, are you in a financial position to absorb the increased costs? Are these costs passed down to buyers?

What percentage of the increased costs is passed down to buyers?

Supply & Demand

Do you have any processes in place to cope with supply and demand imbalance?

Have you ever been unable to fulfill an order because demand exceeded your available supply? How did you cope with this issue?

Have you ever experienced a time when your level of supply exceeded demand? What did you do in this situation?

If a client requests more paraffin than originally planned, what processes are in place to ensure their level of need is met? What impact does this have on the price of the paraffin?

Operational Capacity

When was the last time your facilities were upgraded?

What percentage of your revenue is reserved for technological investment?

Do you have any future upgrades planned?

How stable are your operations in producing paraffin wax? Will new facility upgrades disrupt production?

What is your facilities' operational capacity in light of the coronavirus? Is this capacity expected to change in the coming months?

Quality

How do you ensure that your products meet or exceed their technical specifications?

What types of quality control standards do you have in place?

Have your products ever performed below expectations? What did you do to remedy the situation?

If a product does not meet the technical requirements, what steps are taken to ensure the delivery of a satisfactory product?

Past Performance

What previous experience do you have with a client with needs similar to my own?

If supply disruptions were to occur, what steps would be taken to ensure that my continuity of business would not be interrupted?

Do you have the ability to source supply from another supplier? Who would be liable for those costs?

Can you provide references from current clients?

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Key elements for every RFP

What should my RFP include?

Project Budget

Buyers should include the budgeting fees for transporting the paraffin wax to their location.

Buyers should state how often pricing can be adjusted.

Buyers should provide the details for converting to a fixed price.

Buyers should define payment schedules and a cost breakdown.

Selection Criteria

Buyers should evaluate suppliers on whether they price competitively.

Buyers should give priority to suppliers that are flexible with contract terms and conditions.

Buyers should request references from current and former clients.

For other selection criteria requirements, buyers should reference the Buying-Decision Scorecard section of this report.

Project Schedule

Buyers should disclose the RFP's issue date.

Buyers should disclose the due date for any questions or clarifications from suppliers.

Buyers should disclose when they will answer any questions or clarifications.

Buyers should disclose the date of the award announcement.

Buyers should list the expected start date once a supplier is chosen.

Evaluate major factors to mitigate risk

How risky is the supply chain?

On average, the paraffin wax market has a high level of risk throughout its supply chain. Reliance on crude oil production and imports are significant factors that drive the level of risk upward. Ultimately, though, the lubricant oil market will continue to undercut demand for paraffin wax, thus signaling suppliers... Subscribe to learn more.

HIGH

MEDIUM

LOW