In the third week of February 2024, the Indian and US markets experienced distinct shifts in Linear Alkyl Benzene (LAB) prices. In India, a 0.5% increase in LAB prices was noted, primarily propelled by a concurrent 1.2% surge in the price of feedstock Benzene. This rise directly influenced the production cost of LAB, contributing to the overall price uptick. Despite moderate demand from the domestic surfactant sector, the supply remained stable throughout the week. Global ocean freight rates saw a corrective downward trend over the past two weeks, driven by a deceleration in demand associated with the Chinese Lunar New Year holidays. However, ongoing logistical challenges in the Red Sea from the crisis restrained the drop, maintaining rates significantly above pre-crisis levels. The global container freight index remained unchanged. The average price over the week for LAB Ex Delhi NCR was USD 1808/MT.

Simultaneously, the US market witnessed a 0.5% increase in LAB prices, primarily fuelled by a concurrent 5% surge in Benzene prices. This uptick in feedstock costs directly impacted LAB production costs, contributing to the overall price increase. Similar to India, despite moderate demand from the domestic surfactant sector, supply remained stable. Global ocean freight rates showed a corrective downward trend due to decreased demand during the Chinese Lunar New Year holidays. However, challenges from the Red Sea crisis-maintained rates significantly above pre-crisis levels. The global container freight index remained unchanged.

During the same week, the Chinese LAB market exhibited stability in pricing, reflecting a market environment characterized by moderate supply and demand. The influence of the Chinese Lunar New Year was evident as it impacted domestic market demand, resulting in a lack of new queries for LAB. Despite overall stability, specific sectors in China contributed to fluctuations in LAB pricing. The real estate downturn posed a threat to commodity supplies, leading to decreased LAB demand and maintaining stable pricing. Additionally, the softening of new energy vehicle sales in China contributed to reduced LAB demand in this sector. Economic indicators, including a dip in China's producer prices for the 16th consecutive month and the largest drop in consumer prices since 2009, further influenced LAB pricing dynamics. The average price for LAB FOB Nanjing over the week stood at USD 1,530/MT, reflecting a negligible change from the previous week. When compared to prices from the same period last year, a modest change of 4% was observed.

According to ChemAnalyst, an anticipated increase in LAB prices may foresee in the second half of February 2024. This rise may be attributed to the influence of raw material prices, specifically the expected fluctuations in the cost of feedstock benzene. The tight supply conditions for benzene following the holiday period are expected to persist, contributing to sustained high prices for this crucial raw material. As benzene prices are expected to remain elevated and subject to fluctuations, the knock-on effect on prices is anticipated to continue in the coming weeks.