Linear Alkyl Benzene (LAB) prices exhibited a declining trend in the first half of December 2024 across the United States and Europe, reflecting challenges in downstream demand and broader market dynamics. In the USA, LAB prices fell by 3% for detergent-grade FOB Louisiana, driven by weakened consumption from the LABSA sector, which primarily serves detergent and cleaning product industries. Seasonal demand moderation, coupled with high inventory levels and subdued consumer spending, amplified the downward pressure. A similar trend was observed in Europe, where LAB prices declined by 2% FOB Hamburg due to reduced industrial activity and logistical disruptions. Easing Crude oil and feedstock Benzene prices provided temporary cost relief to producers in both regions, but the benefit was largely offset by persistent weak demand and other economic uncertainties.

In Europe, the decline in LAB prices was compounded by seasonal demand slowdowns, typical during the year-end, were exacerbated by ongoing geopolitical tensions and disruptions in supply chains. Port congestion at major European terminals, particularly in Hamburg, delayed raw material deliveries and increased storage costs, forcing suppliers to liquidate inventories at reduced prices. Additionally, downstream sectors such as detergents and cleaning products experienced sluggish demand, influenced by restrained consumer spending and lower industrial output. The European market remains under pressure from these logistical and economic challenges, leaving producers with limited opportunities for recovery in the near term.

Similarly, in the United States, the downward trajectory of LAB prices was similarly influenced by weak domestic demand and seasonal dynamics. The holiday season significantly reduced industrial activity, particularly in the manufacturing of cleaning agents and detergents, further curbing consumption. Trade uncertainties added to the market's volatility, with proposed tariffs by the president-elect threatening to increase freight costs and disrupt export opportunities.  Further, a decline in feedstock Benzene and crude oil prices, ample product availability and weak downstream demand forced suppliers to adopt aggressive pricing strategies to manage inventory. Logistical challenges, including West Coast port congestion and rerouted shipments due to labor unrest, exacerbated supply chain pressures, adding complexity to the market environment.

The global LAB market is projected to experience a price decline in December 2024, primarily driven by year-end destocking as producers and traders aim to clear excess inventories. This seasonal trend, coupled with subdued downstream demand from the detergent and cleaning sectors, is expected to exert downward pressure on LAB prices. However, the market sentiment is likely to shift positively at the start of 2025.  This seasonal uptick in demand, typically observed in early January, could provide a much-needed boost to the global LAB market. Moreover, fluctuations in feedstock Benzene and crude oil prices remain pivotal in shaping LAB price trends.