Every fluctuation in international oil prices keeps Mr. Li, a manager at a candle manufacturing company in Qingdao, Shandong, on edge. His glass-contained candle export business is facing significant challenges in cost control. After stabilizing above US$68 per barrel in early September, Brent crude prices fell sharply for three consecutive days by over 5.6% to US$65.5 per barrel. Such volatility directly impacts paraffin wax prices, thereby affecting production costs and profits of candle manufacturers. For China, the world's largest paraffin wax exporter (accounting for 44%-52% of global exports), any movement in oil prices is reshaping the business environment for export enterprises. 01 Oil Price Volatility Keeps Exporters on Edge International oil prices have recently shown significant volatility. In early September, ICE Brent crude prices had stabilized above US$68 per barrel, with markets anticipating a second consecutive weekly gain of about 1%. However, the situation quickly changed. By September 5, international oil prices had fallen sharply by over 2%, with Brent crude closing at US$65.50 per barrel and US WTI crude at US$61.87 per barrel. Oil price fluctuations are influenced by multiple factors. Weak US employment data heightened concerns about energy demand prospects. Meanwhile, OPEC+'s impending discussion of further production increases raised fears of a supply glut. US crude inventory levels increased by 2.415 million barrels, indicating weakening US energy demand as the summer driving season ended and market expectations for demand deteriorated. 02 Paraffin Wax Prices Fluctuate with Crude Oil As a downstream petroleum product, paraffin wax prices are closely tied to international crude oil prices. In February 2025, China's paraffin wax exports reached 59,500 tons, up 30.25% year-on-year and 41.29% month-on-month. China's paraffin wax exports account for about 47% of monthly production, making it an industry highly dependent on the international market. The United States is a significant export market for Chinese paraffin wax, with US demand accounting for 6.3%-15.5% of total exports between 2021 and 2024. Changes in Sino-US tariffs directly affect paraffin wax export costs. In May 2025, China and the US announced the cancellation of additional reciprocal tariffs, reverting the tariff level to 10%. This reduced export costs for Chinese companies and improved price competitiveness. However, the 90-day suspension period mentioned in the joint statement indicates that this may not be the final outcome. 03 Cost Pressures Squeeze Corporate Profits Fluctuating oil prices leading to paraffin wax price volatility directly impact the production costs and pricing strategies of glass-contained candle exporters. In August 2025, the European Commission issued a preliminary anti-dumping ruling on candles originating from China, imposing temporary anti-dumping duties as high as 70.9% on some companies. This further increased cost pressures on exporters. Candle export businesses face multiple management challenges: numerous orders with complex specifications; fluctuating raw material and costs; strict compliance and documentation requirements; difficulties in cross-departmental coordination; and policy risks, among others. Exporters face challenges such as transparent cost accounting, integrated order and production planning, and automated documentation and compliance. 04 Coping Strategies: Diversified Material Applications To address cost pressures caused by paraffin wax price volatility, many exporters are seeking material diversification. Kingking Group was the first in China to develop a paraffin substitute—vegetable wax. They now produce a series of vegetable wax products with ratios ranging from 40% to 100%, accounting for 20% of products exported to the European market. Vegetable wax not only reduces production costs by 20%-30% but also meets diverse market needs from different clients, expanding market share. A new type of vegetable wax product uses an oil production process, which does not adversely affect the fragrance or color of candles. It is neither hard nor brittle, offers good flexibility, and is an eco-friendly product that supports the circular use of renewable resources, aligning with national industrial development policies. 05 Market Diversification to Spread Business Risks Facing uncertainties in traditional markets, many companies are diversifying risks through market diversification. Chinese candle products primarily include daily-use candles, decorative candles, and scented candles, widely exported to the EU (Germany, France, the Netherlands, etc.), North American markets, Middle Eastern markets, as well as Japan and South Korea. In February 2025, the top three destinations for Chinese paraffin wax exports were Mexico (11,500 tons), Taiwan, China (5,700 tons), and Poland (5,100 tons). Companies are also enhancing international competitiveness by increasing product value through digital management and strengthening compliance awareness. Foreign trade ERP systems can help businesses achieve integrated control of operations and finance, gaining advantages in cost control and compliance management. 06 Future Outlook: Uncertainties Persist Looking ahead, the global oil market is expected to remain oversupplied. Three major international agencies (IEA, OPEC, EIA) have lowered their forecasts for global oil demand growth in 2025. Continued production increases by OPEC+ are putting significant pressure on international oil prices. In the six meetings from March 3 to August 3, cumulative production increases by eight OPEC+ countries, including Saudi Arabia and Russia, reached 2.193 million barrels per day. Geopolitical conflicts and other factors will also impact international oil prices. The ongoing turmoil in the Middle East is causing market shocks. For paraffin wax exporters, relying solely on low-price competition is no longer sustainable. They must enhance product value through digital management and strengthen compliance awareness to improve international competitiveness.   Zhongya candle factorywhatsapp: +86//187//3296//0113wechat: +86//156//9035//5727Email: Betty@kangdecandle.com

With the strong rebound of the global tourism and hotel industry in the post-pandemic era, high-end hotels and restaurants are making large-scale purchases of exquisitely designed and elegantly scented glass cup candles to enhance the customer experience. In this wave of demand, Chinese exporters have successfully created a range of high-end products that integrate Eastern aesthetics with modern craftsmanship through deep collaboration with top perfumers and designers, leading to an explosive growth in international orders. "Over the past six months, our export orders for high-end glass cup candles have increased by 200% year-on-year, with particularly significant growth in procurement from hotels in European, American, and Middle Eastern markets," said Wang Haitao, general manager of a well-known household goods export company in Zhejiang. In his view, after the impact of the pandemic, the global hotel industry is placing greater emphasis on enhancing the guest experience through, and a beautifully designed cup candle that offers both visual and olfactory appeal has become a "standard feature" in many high-end venues. These glass cup candles are not ordinary fragrant products. They are typically made with hand-blown glass containers, paired with scents carefully crafted by professional perfumers. When burned, they not only emit an elegant fragrance but also refract soft light through the exquisite glass, creating a unique ambiance. To meet the international market's dual demand for quality and cultural depth, Chinese export enterprises are actively seeking collaborations with top creative talents both domestically and internationally. For example, a Shanghai design company partnered with a French master perfumer and Chinese ceramic artists to launch the "Jiangnan Four Seasons" series of cup candles. This series incorporates Eastern scents such as osmanthus, sandalwood, and Longjing tea into modern design language. The product received pre-orders from several five-star hotels in Dubai even before its official launch. "The international market no longer values the cost advantage of 'Made in China' but increasingly favors the design and quality of 'Created in China,'" said Zhang Lin, chief designer of an export company in Shenzhen. "We are tapping into traditional Chinese cultural elements, such as the minimalist aesthetics of the Song Dynasty and the imagery of Suzhou gardens, and integrating them into our product designs." Industry analysts point out that this trend reflects the transformation of Chinese manufacturing from outsourcing to branding and high value-added production. As the global hotel industry continues to recover, the demand for high-end experiential consumption is expected to keep growing, and Chinese exporters are likely to capture a larger share of this niche market.   Zhongya candle factorywhatsapp: +86//187//3296//0113wechat: +86//156//9035//5727Email: Betty@kangdecandle.com