The global Linear Alkyl Benzene (LAB) market experienced a significant price surge across key regions, including Asia, the United States, and Europe, during the third week of February. This increase is attributed to rising demand from the detergent and cleaning product sectors and higher feedstock costs, particularly for paraffin wax and benzene. 

Key Takeaways

• LAB prices increased across the Asian, European, and US markets due to higher demand and rising feedstock costs.
• Downstream LABSA sector rebound contributed significantly to the price uptick.
• US and European demand recovered post-winter, as improving weather conditions boosted industrial consumption.
• China’s LAB market strengthened post-Lunar New Year, with increased procurement activities.

In Asia, LAB prices saw a notable increase, particularly in China and India. The Chinese LAB market rebounded post-Lunar New Year holidays as industrial operations resumed and procurement activities intensified. This led to a 2.9% price increase for LAB FOB Nanjing, in this week concluding on February 21, 2025. The detergent and industrial cleaning sectors drove demand, further strengthening market sentiment. Similarly, in India, prices followed an upward trajectory due to strong demand from FMCG and cleaning product manufacturers. In addition, the rising costs of paraffin wax and benzene exerted pressure on manufacturers, supporting the ongoing price hike. 

The US LAB market also witnessed a price recovery following a prolonged demand downturn during the winter months. With warmer temperatures, industrial and commercial cleaning sectors resumed operations, leading to a 0.8% price increase for LAB detergent grade FOB Louisiana this week. A key driver behind this rebound was the strengthening demand for LABSA, a primary downstream product used in detergents and surfactants. Additionally, the rising costs of benzene and paraffin wax, both essential feedstocks for LAB production, further contributed to the bullish price trend. 

In Europe, LAB prices followed a similar upward trajectory, with a 2.0% increase FOB Hamburg (Germany). The market had experienced seasonal slowdowns in winter, but as industrial activity picked up, demand for detergents and surfactants surged, pushing prices higher. Furthermore, supply constraints in certain regions, coupled with elevated feedstock costs, played a critical role in the price hike. The European LAB market is expected to remain strong in the near term as demand continues to rebound and input costs remain high. 

As per ChemAnalyst, the LAB market is poised to maintain an upward trend in the coming months. Strong demand from downstream industries, coupled with rising paraffin wax and benzene costs, will continue to exert upward pressure on production expenses, thereby influencing LAB pricing. Additionally, factors such as geopolitical uncertainties, supply chain disruptions, and seasonal demand variations will play a crucial role in shaping market dynamics.