What is driving the recent price rally in chlorinated paraffin and how sustainable is it?

What is driving the recent price rally in chlorinated paraffin and how sustainable is it?
Chlorinated paraffin prices rose for two consecutive weeks from mid-February, climbing from RMB 5,900 to 6,075/tonne, a 2.97% gain. This uptick is primarily cost-push rather than demand-driven. Liquid paraffin feedstock costs, closely tied to crude oil, account for the largest cost share, and the recent oil price surge has lifted the cost floor. Producers are holding price lines to protect margins. However, downstream sectors like PVC and cable materials are operating at modest rates, with demand characterized as weak just-in-time purchasing. This suggests the rally is a cost-pass-through event, not the start of a sustainable bull market. The key variables to monitor are crude oil direction and downstream operating rates. If oil retreats or demand fails to improve, downward price pressure will build. Market participants are adopting a wait-and-see stance, prioritizing stability over aggressive positioning.