China’s Candle Exports Hit Eight-Year Low as US, EU Duties Bite

China’s Candle Exports Hit Eight-Year Low as US, EU Duties Bite

Customs data shows China exported just 26,000 tonnes of candles in July 2026, down 32.33% year on year and 3.34% month on month — the lowest July figure since 2018. Cumulative exports for January–July stood at 161,700 tonnes, down 23.31% year on year. Caught between the EU’s newly imposed anti-dumping duties and a US sunset review of a 40-year-old tariff order, the world’s largest candle export industry is facing its toughest test in years.

US: sixth sunset review of a 40-year-old duty order

On September 1, 2026, the US Department of Commerce initiated the sixth sunset review of the anti-dumping duty order on petroleum wax candles from China, with the US International Trade Commission (ITC) launching a parallel injury review. The order has been in effect since August 28, 1986 — 40 years — with the current duty rate at 95.86% and a historical peak of 108.3%. Under the sunset review mechanism, the order survives only if both Commerce and the ITC issue affirmative determinations; if no domestic industry party participates, the order could in theory be revoked. Notably, the US launched anti-circumvention proceedings in 2005 that swept vegetable-oil candles into scope, closing the “switch-to-plant-wax” workaround — which is why exporters are watching this review closely.

EU: duties of 56.7%–60.3% finalized in January

On January 26, 2026, the European Commission issued its final determination in the anti-dumping investigation into candles, tapers and the like from China, imposing duties of 56.7%–60.3% (CN code 3406 00 00). Ningbo Kwung’s entities and Anhui Fenyuan received 56.7%; Qingdao Kingking and non-cooperating exporters 60.3%; other cooperating companies 58.1%. The 23rd amendment to the EU REACH regulation, effective March 2026, has further raised the compliance bar for scented candle shipments.

Volume down, prices up

The export slump reflects not only tariff walls but also front-loaded overseas restocking, rising crude oil prices lifting paraffin costs, and buyers shifting to just-in-time replenishment. Yet unit values are moving up: domestic 58# paraffin wax prices rose a record 1,400–1,750 yuan/tonne in Q1 2026, and the share of premium products is climbing. The industry earlier forecast full-year 2026 export value of about US$1.45 billion, up 5.3%; whether that holds depends on H2 order recovery and price support.

Industry response

China has offered export tax rebates of 5%–8% to compliant candle exporters and is steering firms toward Southeast Asian and Latin American markets. If the US sunset review turns favorable, it could open a rare window back into the American market.