In the first half of January 2025, the Linear Alkyl Benzene (LAB) market declined globally. This drop was mainly due to a decreased demand from the LABSA market, essential for producing detergents and cleaning agents. Seasonal factors and regional market dynamics also played a significant role in affecting LAB demand.

 In Asia, the LAB market experienced a downturn despite rising Benzene feedstock costs. The Chinese LAB FOB Nanjing prices dropped by 0.4%. This was mainly due to weak demand from key downstream industries like detergents and cleaners. Production reduced during the post-holiday period. Lower industrial activity at the start of the year and large market inventories also contributed to the price decline.

Likewise, the European LAB market experienced a decline, with German LAB FOB Hamburg prices dropping by 2.4% for the week ending January 17, 2025.  During the same period, the USA experienced a 2.1% decrease in detergent-grade LAB FOB Texas prices. The decline happened because there was less demand from downstream industries. Seasonal factors and less industrial activity after the holidays influenced this trend. The large supply of LAB and reduced demand lowered prices even more. This shows the overall market trends and how global markets are connected.

Additionally, freight rates from Asia to North Europe fell by 2.49% in the second week of January 2025 compared to the first week. This drop is mainly due to upcoming factory closures during the Lunar New Year, which will lower market demand. However, the shortage of carrier equipment is expected to counter this effect. This should keep freight rates mostly stable with only minor decreases. These changes will directly affect the supply of LAB products. Lower shipping costs might help reduce overall supply chain expenses. But factory closures and equipment shortages could cause temporary disruptions and delays in delivering LAB products.

In the USA, potential port strikes on the East and Gulf Coasts were averted. These strikes were supposed to start on January 15 and would have closed ports from Maine to Texas. This would have disrupted the supply chain for LAB products and other goods. Fortunately, a new six-year contract was agreed upon between the International Longshoremen’s Association (ILA) and the United States Maritime Union (USMX). This prevented the strikes, bringing hope for market stabilization. It ensures a steady flow of LAB products and minimizes supply chain interruptions.

According to ChemAnalyst, the global LAB market is expected to stay subdued. Demand is forecasted to remain weak as downstream industries face challenges before the Lunar New Year. Economic conditions in different regions are still uncertain. In the short term, the LAB market is unlikely to see much recovery. Prices will probably continue to face downward pressure due to weak demand and lower feedstock costs. While freight rates may still affect market conditions, some normalization is expected as logistical disruptions ease.