In the European market, the price of Linear Alkyl Benzene (LAB) experienced a noticeable uptick, rising by approximately 1.3% in February 2024. This surge is primarily linked to multiple contributing factors shaping the market dynamics. To begin with, the rise in expenses associated with importing LAB from international origins has pushed upward on the overall pricing of LAB. The market has grappled with a constrained supply of raw materials and LAB, despite stable demand from the downstream surfactant industry within the region, intensifying the upward price trend in the European LAB market. The European market faced elevated freight rates, a consequence of the ongoing Red Sea crisis. Although the freight situation gradually stabilized across the region, it remained above the threshold limit during the specified period, directly influencing LAB prices.

In stark contrast, the Saudi Arabian LAB market experienced a decline in prices in February 2024, despite the prevailing upward trend in feedstock Benzene. The decrease in LAB prices is primarily attributed to an abundant supply of the product, notably evident in elevated port inventories. The decline was further exacerbated by a downturn in commodity exports due to the Red Sea crises, contributing to a bearish trend in the Saudi Arabian market. Despite this pricing dip, manufacturing activities in the country showcased positive developments during the period. Increased business activity, a surge in new orders, and augmented employment led to the highest business activity pace since September 2023, rebounding from a two-year low in the previous month.

In February 2024, the South Korean LAB market witnessed a decline in prices, influenced by subdued demand in the broader Asian market. The offseason winter demand and logistic challenges arising from the Red Sea crises contributed to an overall slowdown in LAB demand. However, the latter half of the month saw a normalization of freight charges, alleviating some logistical hurdles. Additionally, manufacturing activities in the country experienced a monthly decline, attributed to the Lunar New Year festivals. During this period, the production rate of industries slightly decreased, reflecting the impact of the festivities on the overall industrial output in South Korea.

As per ChemAnalyst, the potential for an increase in LAB prices looms in the weeks ahead, driven by the expected rise in feedstock Benzene and upstream Crude Oil prices. This anticipation stems from the decision of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) to extend their voluntary oil output cuts of 2.2 million barrels per day (bpd) into the second quarter. The move aims to bolster prices amidst global growth concerns and increased output from non-OPEC+ sources.