In the first half of November 2023, the global Linear Alkyl Benzene (LAB) market faced a downturn primarily attributed to a drop in its feedstock, Benzene, associated with a decline in Crude oil prices. Further, subdued demand in the downstream surfactant sector increased the market's challenges and lowered the costs of the product. In the United States, LAB prices declined due to an abundant supply. In contrast, the Asian market displayed mixed sentiments, stabilizing Chinese prices after an initial high in the first week. Middle Eastern countries also experienced a downshift in LAB prices as declining crude oil prices influenced the global market dynamics. The overall market situation was impacted by several factors, including reduced feedstock costs, persistent inflation, geopolitical tensions, and heightened interest rates, which influenced consumer purchasing sentiments overall.

The American LAB market's decline was predominantly driven by the diminishing costs of feedstock Benzene, linked to a downturn in Crude oil prices amid increased stock. Lackluster domestic demand and elevated inventories further intensified the downward price trajectory. Overseas markets in Europe and Asia experienced sluggish demand, influenced by economic slowdowns and persistent inflation in those regions. Additionally, the anticipation of sustained high-interest rates in the United States had an adverse impact on domestic LAB market demand.

In the Asian LAB market during this timeframe, a significant decline was observed, primarily propelled by reduced demand in the surfactant market, especially as the Chinese economy underwent a slowdown. Another contributing factor to this decline was the global easing of feedstock Benzene prices, influenced by Crude Oil prices and subdued demand. In the Indian market, purchasing sentiments declined post-festival seasons, and the ample domestic supply further supported the prevailing downward trend for LAB.

Similarly, the Saudi Arabian LAB market experienced a bearish trend amid global sluggish demand for the product. The demand from overseas markets, particularly Asia, also seemed gloomy, coupled with ease in feedstock costs, which led to reduced material costs. Further, a plant shutdown was reported as Gulf Farabi Petrochemical shut its LAB unit in early November 2023 for a maintenance turnaround. The duration of the shutdown cannot be ascertained. It is located in Yanbu, Saudi Arabia, and has a plant capacity of 120,000 mt/year.

As per ChemAnalyst, the price movement for LAB is anticipated to decline through November and December in the global market. This is foreseen due to anticipating a persistently bearish demand for the product from the downstream industry. Additionally, the price trajectory may be influenced by the expectation that feedstock Benzene prices will remain low, contributing to the ease in the product's production costs during this period. Nevertheless, a rebound of the LAB market in January 2024 is expected, which can be attributed to the possible reduction in inventories and a potential rise in demand during that period.