For the Quarter Ending September 2024
North America
In Q3 2024, the North American market for Linear Alkyl Benzene (LAB) experienced a notable decline in pricing, driven by several critical factors. Compared to both the same period last year and the previous quarter, LAB prices showed a consistent downward trend. This decline was largely attributed to weak demand from downstream industries, particularly in the detergents and cleaning products sectors, which significantly impacted purchasing activity. The situation was further exacerbated by easing feedstock Benzene prices, which added to the overall reduction in LAB pricing.
Focusing specifically on the USA, which saw the most substantial fluctuations, the market exhibited a distinctly negative pricing environment throughout the quarter. By the end of Q3 2024, the price change for Linear Alkyl Benzene detergent grade FOB Louisiana was 2% in September as compared to the previous month, indicative of the prevailing bearish sentiment among market participants.
This persistent decrease in prices highlights the ongoing challenges confronting the LAB market, characterized by subdued demand and the influence of falling feedstock costs exerting downward pressure on pricing. Overall, the market dynamics suggest that LAB producers will need to adapt to these conditions to remain competitive amid evolving industry demands.
APAC
In Q3 2024, the Linear Alkyl Benzene (LAB) market in the APAC region experienced a notable decline in prices, primarily driven by weak demand and stable supply conditions. Several factors contributed to this downward trend, including reduced downstream demand from the LABSA industry and an abundance of LAB in the market. Additionally, stable feedstock Benzene prices played a role in maintaining the price equilibrium despite the challenges. China saw the most significant fluctuations in LAB pricing, with a noticeable decrease compared to both the same quarter last year and the preceding quarter in 2024. The quarter ended with a 6.4% decline in the price of Linear Alkyl Benzene (LAB) FOB Nanjing, highlighting the market's persistent struggles. This overall downward trajectory in pricing underscores a challenging market environment, characterized by a prevailing negative sentiment as demand pressures coupled with stable supply dynamics exerted downward influence on prices throughout the quarter. These conditions indicate that market players may need to reassess their strategies to navigate the complexities of the LAB market in the APAC region, particularly in response to shifting demand patterns and the need for competitive pricing.
Europe
Throughout the third quarter of 2024, the Linear Alkyl Benzene (LAB) market in Europe faced significant challenges, evidenced by a consistent decline in prices throughout the quarter. This downward trend is largely attributed to a confluence of factors, including weak demand from downstream industries, an oversupply of LAB, and decreased feedstock costs. Compared to the same quarter last year, the market showed a notable shift, reflecting ongoing negative sentiment that had persisted from the previous quarter. Germany emerged as a focal point for the most significant price fluctuations within the region, demonstrating how local dynamics echoed broader market trends. The quarter-ending price saw a decrease of 6.2% for FOB Hamburg (Germany), further underscoring the prevailing negative pricing environment. This decline highlights the difficulties the European LAB market is encountering, exacerbated by global economic uncertainties and a lack of robust demand from key sectors. Overall, the quarter painted a bleak picture for the LAB industry, characterized by decreasing prices driven by complex market dynamics.
MEA
In Q3 2024, the Linear Alkyl Benzene (LAB) market in the Middle East and Africa (MEA) region experienced a notable decline in prices, highlighting the industry's challenging dynamics. Several key factors contributed to this downward trend. Primarily, there was subdued demand from downstream sectors, particularly from LABSA, affecting both domestic and international markets. This weakened demand exerted considerable downward pressure on LAB prices. Additionally, supply chain disruptions caused by vessel delays and ongoing geopolitical tensions further complicated market conditions, exacerbating price declines. The overall market sentiment was shaped by stable feedstock prices coupled with persistent global economic uncertainties, which created an overall negative pricing environment for LAB. In Saudi Arabia, the impact was particularly pronounced, where the market saw the most significant price fluctuations within the region. By the end of the quarter, the price of Linear Alkyl Benzene (LAB) FOB Jeddah decreased by 1.5%, underscoring the prevailing negative pricing dynamics. This situation illustrates the complexities facing the MEA LAB market, with supply constraints and weak demand contributing to the industry's struggles in maintaining stable pricing.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American market for Linear Alkyl Benzene (LAB) experienced a significant upward trajectory in pricing. This increase was driven by robust demand from downstream detergent and surfactant industries, heightened by the seasonal summer surge. Elevated temperatures led to greater LAB consumption for cleaning products due to increased outdoor activities and soiling. Additionally, the rise in upstream crude oil prices, influenced by geopolitical tensions and OPEC's supply cuts, significantly impacted LAB production costs. Supply chain disruptions, including higher freight rates and container shortages, further exacerbated pricing pressure.
In the USA, LAB prices reflected a bullish trend throughout Q2 2024, supported by seasonal demand and persistent supply chain challenges. Year-over-year, LAB prices surged by 16% from the same quarter last year, indicating robust growth. Compared to the previous quarter, prices increased by 6%, demonstrating a consistent upward trend.
Within the quarter, prices rose by 8% from the first to the second half, underscoring the steady increase. The quarter ended with LAB detergent grade FOB Louisiana prices at USD 2350/MT, driven by strong demand, escalating production costs, and ongoing supply chain constraints.
APAC
In Q2 2024, the Linear Alkyl Benzene (LAB) market in the APAC region remained stable due to a balanced demand-supply gap. However, in the first month of the quarter, LAB prices increased by 1.4%, driven by a surge in demand for surfactants from both local and overseas markets. The primary catalyst behind this bullish sentiment was the rising temperatures in Asia and Europe, which spurred higher LAB consumption in the surfactant industry. Elevated temperatures lead to increased outdoor activities and greater soiling, boosting demand for cleaning products. Surfactants, essential in cleaning agents, detergents, and household cleaners, saw heightened demand. However, in the following two months, LAB prices decreased by 0.8% and 0.3% respectively. This decline was due to ample raw material availability within the country, facilitated by easing feedstock Benzene prices. Additionally, lower freight rates compared to the previous year, driven by reduced overseas demand, contributed to the downward price trend. Overall, the quarter showcased a dynamic interplay of rising early demand and subsequent price adjustments influenced by raw material availability and logistics.
Europe
In Q2 2024, the European Linear Alkyl Benzene (LAB) market experienced notable price increases driven by heightened demand from the downstream surfactant industry, increased overseas inquiries, and rising temperatures. These factors collectively propelled LAB prices upward, creating a bullish market sentiment. The supply chain faced moderate constraints due to elevated freight rates and material shortages, exacerbated by global shipping disruptions, such as vessel diversions around the Cape of Good Hope. In Germany, the market exhibited the most pronounced price changes in the region. Increased demand for cleaning products, spurred by warmer weather and heightened outdoor activities, contributed to the surge in LAB prices. Compared to the same quarter last year, prices surged by 11%, reflecting robust market dynamics and economic conditions. The quarter-on-quarter increase from Q1 2024 was 4%, underscoring persistent upward momentum. Prices rose by 2% between the first and second halves of the quarter, signaling consistent growth throughout the period. By the end of Q2 2024, the price of LAB in Germany reached USD 1620/MT FOB Hamburg. This steady increase indicates a positive pricing environment driven by strong seasonal demand, increased operational costs, and strategic market positioning by suppliers.
MEA
In Q2 2024, the Middle East and Africa (MEA) region experienced an uptrend in Linear Alkyl Benzene (LAB) prices, driven by several factors. Increased production costs due to higher feedstock Benzene prices were crucial, with the Benzene surge attributed to geopolitical tensions and reduced crude oil output by OPEC countries. Additionally, substantial challenges in the global freight industry, including increased freight rates, further exacerbated production costs and logistics issues. Seasonal demand, particularly from the surfactant industry, also played a pivotal role, with heightened temperatures in the Middle East and European markets boosting LAB consumption for cleaning products. Saudi Arabia saw the most significant price changes in the region. Overall, there was a steady increase in LAB prices, with seasonality playing a crucial role. Compared to the same quarter last year, LAB prices rose by 1%, reflecting a consistent upward trend. By the end of the quarter, the price of LAB reached USD 1710/MT FOB Jeddah, illustrating the influence of these cumulative factors on the pricing trajectory. The quarter was marked by a positive pricing environment driven by increased costs, heightened demand, and logistical challenges.
For the Quarter Ending March 2024
North America
In Q1 2024, the North American Linear Alkyl Benzene (LAB) market experienced a downward trend in prices. This decrease can be attributed to several significant factors. Firstly, there was an overall decline in demand for LAB in the region.
This was influenced by various factors such as reduced economic activity, decreased consumer spending, and a slowdown in the manufacturing sector. Additionally, there was ample supply of LAB in the market, which further contributed to the downward pressure on prices. In the USA, the largest market for LAB in North America, the price trend mirrored the overall regional trend.
The market saw a decrease in prices compared to the same quarter last year, with a decline of 6%. There was also a decrease in prices compared to the previous quarter in 2024, with a decline of 1%. However, there was a slight increase in prices between the first and second half of the quarter, with a 2% increase. Overall, the pricing environment for LAB in Q1 2024 can be characterized as negative, with prices declining throughout the quarter. The latest quarter-ending price for Linear Alkyl Benzene detergent grade FOB Louisiana in the USA was USD 2080/MT.
APAC
During Q1 2024, the Linear Alkyl Benzene (LAB) market in the APAC region exhibited a generally stable pricing environment with moderate fluctuations. Market prices were influenced by various factors including supply and demand dynamics, fluctuations in feedstock costs, and disruptions in global trade. The overall market trend reflected a mix of positive and negative developments. In South Korea, LAB prices showed significant fluctuations during the quarter, particularly experiencing a bearish trend with a 2.1% decrease in December 2023. This decline was attributed to subdued demand from the downstream surfactant industry and a decrease in the cost of feedstock Benzene. Additionally, the market witnessed low demand with contracting new orders and reduced overseas sales. Across the APAC region, LAB prices remained relatively stable throughout Q1 2024, albeit with variations among different countries. South Korea saw the most pronounced decrease in prices, whereas countries like China and India observed stability or slight increases in prices. The quarter-ending price for LAB in South Korea stood at USD 1685/MT FOB Busan, reflecting the overall stability of the market during Q1 2024 despite localized fluctuations. In summary, the APAC LAB market in Q1 2024 was characterized by stability and modest price changes, influenced by supply-demand dynamics and global market conditions.
Europe
In Q1 2024, the pricing environment for Linear Alkyl Benzene (LAB) in the European region was influenced by various factors. Overall, the market experienced a positive trend, with prices showing an upward trajectory. Germany, in particular, saw significant price changes during this period. One of the key factors that influenced LAB prices was the cost of importing the product from overseas sources. The European market faced supply disruptions due to security concerns in the Red Sea, which led to increased shipping times and elevated freight rates. These disruptions, coupled with a constrained supply of raw materials and finished products, exerted upward pressure on LAB prices. Additionally, the demand for LAB from the downstream surfactant industry remained stable, contributing to the price increase. The recent low temperatures in the region also supported demand, typical of the off-season winter period. Looking at the price trends within the quarter, LAB prices in Germany increased by approximately 1.4% compared to the previous quarter. This upward trend was consistent with the overall positive pricing environment in the European market. In conclusion, the pricing environment for LAB in Europe, and specifically in Germany, was positive in Q1 2024. Factors such as supply disruptions, stable demand, and seasonal variations contributed to the upward trend in prices. The quarter-ending price for LAB in Germany was USD 1559/MT.
MEA
The first quarter of 2024 presented significant challenges for the Linear Alkyl Benzene (LAB) market in the Middle East and Africa (MEA) region, particularly in Saudi Arabia. LAB prices experienced fluctuations driven by multiple factors. Saudi Arabia witnessed the most notable price changes, with prices trending downward throughout the quarter. One key influence on market dynamics was the imbalance between supply and demand. The market saw an abundance of LAB supply, resulting in excess inventory levels. To manage surplus stock, traders lowered prices, creating downward pressure on market values. Concurrently, demand for LAB remained moderate, primarily driven by the downstream surfactant industry. Overseas demand for LAB faced obstacles, notably due to disruptions in the Red Sea transportation route. These disruptions led to increased freight charges and security concerns, affecting export volumes. Despite rising feedstock Benzene prices, LAB prices remained relatively stable due to ample supply in the market. The overall price trend for LAB in Saudi Arabia reflected a downward trajectory in Q1 2024, aligning with broader market sentiment and the aforementioned factors. Comparing prices between the first and second half of the quarter reveals a consistent decline.
For the Quarter Ending December 2023
North America
The North American Linear Alkyl Benzene (LAB) market witnessed a mixed trend during the last quarter of 2023 (Q4).
The supply of LAB remained moderate to high this quarter, while the demand was low from the domestic market but high from exporting for destinations. The market remained bearish due to the challenging global economy and weakened demand from the downstream surfactant industry. The anticipated inclination in feedstock Benzene prices and rising crude oil prices may impact the price trajectory. However, the price trend sustained an uptrend during this quarter, supported by the expected improvement in natural gas prices and high crude oil value.
The USA, the major player in the North American market, witnessed a 1% decrease in price, reaching USD 2032/MT for Linear Alkyl Benzene detergent grade FOB Louisiana on quarter-end. The price reduction can be attributed to the depreciating Benzene prices amid easing crude oil prices, which overall contributed to the decrease in the cost pressures of the product. The trend remained bearish with a high supply of the product and low demand from the domestic market, and overseas trading activities may remain sluggish. This quarter saw no plant shutdowns reported by market analysts. The price percentage change from the last year same quarter was -4%, while the percentage change from the current to the previous quarter 2023 was -3%. The price percentage comparison of the first and second half of the quarter of the USA was -1%.
APAC
The fourth quarter of 2023 was characterized by a bearish market situation for Linear Alkyl Benzene (LAB) in the APAC region. The supply of LAB was high, leading to a downward pressure on prices. The anticipated depreciation in the feedstock Benzene prices also contributed to the bearish market sentiment. Additionally, the decline in international crude oil prices and concerns about demand in the Asian region further impacted the LAB market. In South Korea, which experienced the most significant changes in prices, the market situation was bullish with a moderate supply. However, the consumption from the downstream surfactant industry was high, leading to sellers increasing the price due to insufficient inventories. In terms of price trends, there was a -2% percentage change in prices compared to the same quarter of the previous year, indicating a slight decrease. However, the price change from the previous quarter was only 1%, suggesting relatively stable pricing. In conclusion, the fourth quarter of 2023 saw a bearish market for LAB in the APAC region. The high supply, anticipated depreciation in feedstock prices, and concerns about demand contributed to the downward pressure on prices. In South Korea, the market was bullish with a moderate supply, but sellers increased prices due to high consumption from the surfactant industry. The quarter ended with a price of USD 1710/MT for LAB FOB Busan in South Korea.
Europe
The fourth quarter of 2023 for Linear Alkyl Benzene (LAB) in the European region was impacted by several factors. Firstly, the market experienced a decline in prices compared to the same quarter of the previous year, with a decrease of 34%. This can be attributed to the challenging global economy and weakened demand recovery in key regions, particularly in China. Additionally, the demand for LAB in Germany, the largest economy in Europe, remained low due to unhealthy economic conditions and reduced purchasing activities. The market sentiment remained pessimistic, leading to minimal purchases and minimal inventory levels. The supply of LAB in Europe was high, with no notable disruptions reported. However, the supply from certain countries such as the Netherlands and Belgium was relatively low, impacting the overall market. Despite this, the market was influenced by competitively priced import cargoes from overseas suppliers. In terms of plant shutdowns, no closures were reported during this quarter. Overall, the quarter ended with a price of USD 1495/MT of Linear Alkyl Benzene (LAB) FOB Hamburg in Germany.
Middle East
In Q4 2023, the Middle Eastern Linear Alkyl Benzene (LAB) market experienced a substantial 6% decline in prices, driven by a noteworthy 6.5% decrease in feedstock benzene costs. This led to more cost-effective LAB production, contributing to a bearish trend. The downstream surfactant industry, facing lacklustre demand domestically and internationally, especially in Europe, saw further decline amid a pessimistic winter market outlook. Sluggish demand persisted in both domestic and international markets during the quarter, accentuated by the winter season's impact. Feedstock benzene costs also decreased due to fluctuations in crude oil prices. OPEC's November output decline, with reduced shipments from Nigeria and Iraq and sustained production cuts, particularly from Saudi Arabia, aimed to stabilize the market but faced economic challenges due to insufficient market response. The bearish sentiment extended to Saudi Arabia, influenced by concerns about sluggish global economic growth, notably in China. Additionally, the General Authority of Statistics reported a slight 0.1% uptick in consumer prices in October 2023, with expectations of a marginal increase in November. Persistent inflationary pressures influenced consumer sentiments, causing a reduction in domestic demand. As the region grapples with these challenges, the intricate interplay of global economic conditions, feedstock dynamics, and regional sentiments shapes the LAB industry landscape in Q4 2023.
