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.
For the Quarter Ending September 2023
North America
The price of Linear Alkyl Benzene (LAB) experienced a smooth revival in the North American region in the quarter ending September 2023. The supporting factors included a slow-paced increase in the downstream sector and export orders. At the beginning of the quarter, the impact of high inflation depleted consumer sentiments, and tighter financial conditions prompted consumers to cut back on spending in the downstream market. Conversely, High global crude oil values have affected the LAB prices in the American market, as observed in September 2023. A significant rise in the prices of LAB was observed on the back of high export queries and high global crude oil value. The prices of raw material benzene remained high, as it has been rising continuously for the H2 of the quarter elevating the production costs for the commodity. The downstream surfactant market of the country remained moderate in the meantime, while domestic queries showed a marginal inclination at the end of this quarter. Therefore, taking pressure from these market fundamentals, LAB prices rose effectively during September and also affected the prices of downstream derivatives LABSA.
Asia
In Asia, the prices of LAB displayed a steady increase in the quarter ending September 2023, owing to the fluctuations in the international offers coupled with the slow increase in the demand in the surfactant industry. In September 2023, the South Korean market experienced a marginal price increase as the availability of inventories within the regional market remained modest, with improvements seen in the shipping situation. The LAB prices in South Korea showed an upward trend primarily driven by increased demand from the downstream LABSA and surfactant industries in both domestic and global markets. The South Korean LAB market has been escalated by heightened import demand from China in the H1 of the quarter. Further, the price of feedstock Benzene has seen a rise due to increased costs upstream of Naphtha and Crude oil prices towards the end of the third quarter. These factors have influenced the overall production costs for LAB contributing to the price increase in the quarter ending September 2023 in the APAC region contradicting to Chinese market as the Chinese traders have started luring by offering surprisingly high discounts on spot LAB purchases. Several traders in China have started offering discounts of more than 10% to destock their older inventories.
Europe
In the quarter ending September 2023, the price of Linear Alkyl Benzene (LAB) saw a notable increase in the European market and was primarily driven by the heightened demand and surge in the feedstock Benzene prices. Furthermore, the elevated costs of upstream Naphtha and Crude oil have had a significant effect on the production expenses of LAB, thereby reinforcing the upward price trend for this quarter. The demand from the downstream surfactant industry remained consistent within the regional market. Notably, the prevailing inflation and high-interest rates in the European region have compounded production run rate delays, compelling manufacturers to adjust the commodity pricing momentum to sustain profitability. Additionally, the supply of LAB from European countries, particularly the Netherlands and Belgium, has been somewhat constrained, resulting in evident impacts on the product's price dynamics. Furthermore, data released by Eurostat revealed a decline in European industrial activities during the previous month, with the Industrial Production output in the Euro Area registering a -1.1% change in August 2023 compared to the preceding month. This sentiment appeared to persist into September in this quarter.
Middle East Asia
The Linear Alkyl Benzene (LAB) market in the MEA region witnessed a price increase in the quarter ending September 2023 amidst the growing global demand from the downstream LABSA and surfactant industries. The rise in prices of feedstock Benzene, driven by increased costs of upstream Naphtha and Crude oil, has also contributed to elevated production costs for LAB, thereby bolstering the upward price trajectory. The demand for LAB from the Asian market, notably countries such as China and India, has remained robust, benefitting from improved economic stability in the H1 of the third quarter of 2023. Furthermore, Saudi Arabia's non-oil economy experienced accelerated growth in September, driven by a substantial increase in output and the influx of new orders. The surge in business activity has had a positive impact on the country's economic landscape impacting downstream consumer spending in the LAB market. In the second half of the quarter, LAB prices also showed an upward trend, primarily due to resilience in the demand from the downstream LABSA and surfactant sectors in the regional market and limited supplies. Additionally, steady export demand for LAB in Asian nations, particularly India, helped maintain higher prices in the MEA for this quarter.
For the Quarter Ending June 2023
North America
During the second quarter of the year 2023, the LAB prices in North America have shown a bearish trend. The ample supply of the product, along with subdued demand, has led the costs of the product to a downturn. Due to market uncertainties, the American market has shown lackluster demand from the downstream LABSA and surfactant industries. The increased interest rates and the fear of recession have caused consumers to be reluctant to make fresh purchases and make only need-based purchases. The upstream Benzene and Crude oil has shown mixed sentiments as the prices rose in April but fell continuously for the next two months influencing the LAB prices. The price of Linear Alkyl Benzene Detergent grade FOB Louisiana (USA) was USD 2217/MT in April, USD 2192/MT in May, and USD 2060/MT in June 2023. The price decline for LAB was around 6% in the last month of the quarter. As per ISM data, the manufacturing PMI index has been declining, as 47.1 in April, 46.9 in May, and 46 in June, indicating a contraction in the manufacturing sector in the US.
APAC
Linear Alkyl Benzene (LAB) prices have fluctuated in the year's second quarter. The prices surged in April but fell for the next two months, May and June. The decline was primarily due to the subdued demand from the downstream surfactant industries. The Chinese market is a major importer of LAB. However, the slowdown in the Chinese economy and weaker market sentiments has caused the prices to decrease in the Asia- Pacific region. The excess inventories have led the producers to curtail their production rates to avoid overstocking the inventories and have caused sellers to offer discounts to sell the product. The South Korean LAB prices were fluctuating in this quarter as the prices were quoted to be USD 1863/MT in April with a marginal surge of 0.4%, prices were USD 1733/MT in May, which counts to a decline of 7% and in June the price was USD 1664/MT, with 4% drop. The upstream Benzene has also shown mixed sentiments as the prices rose from 7% in April and fell consecutively by 10% in May and June.
Europe
This quarter, the Linear Alkyl Benzene (LAB) prices have shown fluctuations in the price movement as they increased in the month of April but declined in May and June. The market dynamics and conditions were impacted on account of recession and geopolitical tensions due to the Russia-Ukraine war. The upstream Benzene also showed fluctuations in the second quarter. The ease in the Benzene and Crude oil prices in May and June has supported the downward trend for the LAB in Germany. The FOB Hamburg (Germany) LAB prices were USD 1692/MT in April, USD 1540/MT in May, and USD 1494/MT in June. The LAB prices declined by 1% in April but fell by 9% and 3% in May and June, respectively, in the German market. The annual inflation rate in the Euro area fell to 5.5% in June 2023 from 6.1% in May 2023, as per Eurostat data, the statistical office of the European Union. Although the inflation rate has reduced from the all-time hike, the rates still remain high, keeping consumers hesitant to buy products.
MEA
During the Q2 of this year, the LAB prices have shown fluctuations in Middle East Asia region. Linear Alkyl Benzene (LAB) prices have surged in Saudi Arabia for the first two months, April and May, but decreased in June. The fluctuation in LAB prices was seen due to changing prices of upstream Benzene as a similar trend in prices was followed. The price increase was seen due to raised demand for LAB from the downstream surfactant industry in the domestic market of Saudi Arabia; also, the raised prices of Crude oil have strengthened LAB prices. The decline in June was seen as the Crude Oil and Benzene prices eased, and the demand was subdued along with a surplus product supply. The price for LAB Fob Jeddah in Saudi Arabia was USD 1710/MT in April, USD 1830/MT in May, and USD 1739/MT in June. The price rose by 2% and 7% in April and May, respectively, while a 5% decline was observed in June.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, the Linear Alkyl Benzene market showcased bullish sentiments on account of rising demand and upstream (crude oil) prices in the regional market. Positive changes in the dynamics of the feedstock Benzene market have been brought about by active procurement from the LAB industries. In addition, market activity increased because of the robust economic expansion. As several petrochemical refineries have resumed their full production levels, the demand for downstream industrial surfactants increased, contributing to the demanding hike of LAB in the US. The cost of Linear Alkyl Benzene in the American market increased towards the end of the quarter on the back of rising upstream Benzene costs in the US. The rising demand in March for downstream surfactants assists the increasing cost of LAB in the American market.
Asia-Pacific
This quarter, the price of Linear Alkyl Benzene in Asia has been steadily rising. The price of LAB has grown in South Korea as a result of rising upstream Benzene costs. An average supply of LAB has been produced due to the rising cost of upstream Benzene in the South Korean market. Furthermore, the region's total demand remained high. In South Korea, there was a strong need due to the growing end-user demand for downstream surfactants and detergents. The rising cost of LAB in the Chinese market was being driven by the country's growing demand in the downstream laundry industry. The price of upstream Benzene in China rose, which drove up the price of Chinese LAB. Linear Alkyl Benzene (LAB) FOB Nanjing (China) USD 1762/MT.
Europe
The Linear Alkyl Benzene market displayed negative market sentiments throughout the first quarter of 2023 as a result of shifting upstream (crude oil) prices in the global market. Along with fluctuating crude oil prices on the regional market, the product's demand fell. The German market for LAB pricing has shrunk due to a confluence of numerous subpar consumer demands and declining upstream and energy prices. The market for LAB pricing in Germany has shrunk as a result of a combination of low customer demand, plentiful supply, and rising energy prices. Despite the region's seasonal variations, the inflation rate stabilized as the demand for the product decreased.
For the Quarter Ending December 2022
North America
The prices of Linear Alkyl Benzene (LAB) in the American market dropped throughout the fourth quarter of 2022. The below-average demand for detergents and downstream surfactants is the major reason behind the declining price trend during the fourth quarter. During the first half of Q4, upstream benzene's easing price abetted LAB's easing price in the US. In the second half of Q4 2022, despite the rise in upstream benzene costs due to the poor demand during the festive season and destocking activities brought down the prices of LAB in the American market. The price of LAB during the end of Q4 2022 in the US was recorded at USD 2120/MT Linear Alkyl Benzene detergent grade FOB Louisiana (USA).
APAC
The price of Linear Alkyl Benzene (LAB) during the end of Q4 2022 in the Chinese market was recorded at around USD 1643/MT Linear Alkyl Benzene (LAB) FOB Nanjing. The prices decreased throughout the fourth quarter of 2022, which reflects the price trend of upstream benzene in the Chinese market. The rising covid cases and the poor economic situation in China is a major factor that abetted the drop in LAB prices during the fourth quarter of 2022. Throughout the Q4 of 2022, LAB prices in the Indian and south Korean markets followed the same price trend in the Chinese market since China is one of the major exporters.
Europe
Linear Alkyl Benzene (LAB) was priced at roughly USD 2190/MT Linear Alkyl Benzene (LAB) FOB Hamburg at the end of Q4 2022 in the German market. In line with the declining price pattern of upstream benzene in the German market, prices fell during the entire fourth quarter of 2022. The poor buying sentiments during Q4 2022 in the European region from the end-users and several industries are due to high inflation rates in several European countries. The slight easing of the energy prices during Q4 2022 in Europe assisted the price drop of LAB in European countries by reducing operation costs.
For the Quarter Ending September 2022
North America
The prices of Linear Alkyl Benzene (LAB) in the American market dropped during the start of the third quarter due to decreasing cost of upstream Benzene in the domestic market, caused by weak buying sentiments for Benzene globally. The benzene price drop during the start of Q3 brought down the operation cost of LAB, easing the price of LAB in the US. The second half of Q3 2022 in the US witnessed a price rise of LAB in the US as the supply of upstream Benzene from South Korea was disrupted due to cyclones in the yellow sea route. The price of LAB in the US was recorded at around USD 2217/MT at the end of Q3 2022.
APAC
Linear Alkyl Benzene (LAB) prices in the Chinese market dropped during the start of the third quarter on the back of poor buying sentiments for upstream Benzene in China. The demand for upstream Benzene was very poor, which reduced the production cost of LAB in China, leading to the easing of LAB prices. However, the situation changed during the latter half of Q3 due to rising demand for downstream cleaning products, where the requirement was raised on the back of the mid-autumn festival. The South Korean LAB market followed the same trend as the Chinese market, and the price of LAB during the end of Q3 in South Korea was recorded at around USD 1875/MT.
Europe
The easing demand for upstream Benzene in the European markets eventually caused the price fall of Linear Alkyl Benzene (LAB) during the first half of the third quarter of 2022. Also, Increased demand for downstream surfactants in the Europe market started to ease during the start of Q3, which led to the fall of LAB prices in Europe during the same time period. Despite weak upstream prices in Europe, the high energy price pushed up the operation cost of LAB and raised its prices during the latter half of Q3 2022. The price of LAB in Germany during the last month of Q3 was recorded at around USD 3553/MT.
For the Quarter Ending June 2022
North America
The price of Linear Alkyl Benzene (LAB) in the American market rose gradually throughout the second quarter of 2022. Historically, the end of the second quarter is when chemical refineries and industries undergo annual maintenance. So, the demand for industrial surfactants in the domestic market. Linear Alkyl Benzene Sulfonic Acid (LABSA), the highly preferred industrial surfactant, was in high demand in the second quarter of 2022. LABSA is a downstream product of LAB, so the increased demand for LABSA drove up the need for LAB in the domestic market. The high cost of upstream Benzene in the domestic market assisted the increasing price trend of LAB in the US during Q2 2022.
APAC
In the Indian market, the Linear Alkyl Benzene (LAB) price rose steadily across the second quarter of 2022. The price hike happened primarily due to high demand from end-users and households for detergents and laundry cleaners. The demand from LABSA manufacturers increased as the need for industrial surfactants peaked during the end of Q2 2022. The high price of upstream Benzene on the back of high feedstock crude oil costs abetted the uprising trend of LAB prices in India. In China, the price trend of LAB dropped during MAY as covid regulations dampened the demand for the commodity in the domestic market. The pricing movement turned over the following month owing to increased demand from industries for surfactants.
Europe
In the European market, the prices of Linear Alkyl Benzene (LAB) witnessed a vast hike during the mid of second quarter of 2022. The high hike in the price was significantly due to the energy crisis in the continent, which drove up the production and transportation costs of the commodity. The rising price of upstream Benzene due to the high feedstock price on the continent due to the ongoing war between Russia and Ukraine abetted the price hike of LAB. But during the end of Q2, the prices of LAB in the domestic markets were artificially brought down because of no offtakes on account of high cost.
For the Quarter Ending March 2022
North America
Prices of linear alkyl benzene in the United States market increased throughout the first quarter of 2022. Prices hiked on the back of the inclining feedstock (crude oil) prices on the account of the escalating geo-political tensions in the eastern European region in mid-February. When Russia invaded Ukraine, it worsened the situation of the crude oil supply globally leading to high feedstock Benzene prices. At the end of the Q1 of 2022, linear alkyl benzene traded around USD 2080/MT in the US. Major companies and end–users’ preference of linear alkyl benzene as a detergent due to its eco-friendly nature assisted in the inclination of linear alkyl benzene demand in the American market.
Asia Pacific
The Asian market for linear alkyl benzene (LAB) started on a bullish trend as the availability of upstream Benzene was low owing to the failure to meet the supply need of upstream crude oil in the Asian countries. The prices hiked in March again as production in China remained halted on the account of winter Olympics. China is the major producer and exporter of LAB to Asian countries especially India, the production halts in February reflected in the price of the commodity during March. The price of LAB in the Indian market during the end of the first quarter of 2022 was USD 2848/MT.
Europe
Unlike the trends of linear alkyl benzene prices in the other markets, in the European market the price of linear alkyl benzene has been stable with very negligible price fluctuation throughout the first quarter of 2022. Europe despite being the most affected region from the invasion of Ukraine suffered unprecedented shortage of natural gas and crude oil but did not see a price hike of linear alkyl benzene as the Europe had strong inventory of detergent and cleaning products. LAB was assessed at nearly USD 2475/MT in the German market throughout Q1 of 2022.
For the Quarter Ending December 2021
North America
LAB market in North America showed signs of bullishness with consistently rising prices during the whole of October and mid-November. The price rise was majorly driven by the tightness in benzene feedstock supplies on raging upstream crude oil prices along with low productions in the USA facilities that were on the path to recovery from Ida hurricane inflicted damages. Crippled spot activity also remained a major cause of concern for the traders. In December, the USA market witnessed down-revised prices on the boost in raw material availability towards end-November and December. Also, the relaxing port clogging enabled improved offtakes in the international downstream industries causing the December prices in the USA to hover around USD 1840/MT FOB Louisiana. Meanwhile, the local demand in the household cleaning and personal care sector also showed stability.
Asia
The discussions for LAB in the Asian market demonstrated firmness until mid-November under the influence of strong-getting benzene feedstock on the back of depleting upstream crude oil inventories. With a slight slip in the prices on the capped upstream market, the downstream cleaning and detergent industry accelerated their buying patterns during November-end in order to fill their inventories to avoid any delays in catering to customer demands. The improvement in import activity, as well as the year-end stock-clearing tendency among the Indian producers tamed LAB prices in the country, causing them to hover in the range of USD 1718/MT to USD 1908/MT during December.
Europe
High volatility in the upstream crude oil prices and crawling up demand from the downstream industries kept the prices of LAB to stay buoyed in Europe for a major portion of the quarter. Despite improvement in feedstock availability, December prices of LAB in Germany reached USD 2430/MT FOB Hamburg after showing a marginal fall from October and November trends owing to the surge in demand fundamentals due to increased cleaners and detergent consumption with the resurgence in Coronavirus cases.
For the Quarter Ending September 2021
North America
The prices of Linear Alkyl Benzene (LAB) rose significantly in North America in Q3 2021 on the back of the consistent demand from the downstream industries. A tight supply of upstream benzene due to lower inventory levels and increasing raw material cost added to the supply side constraints in the production of LAB during Q3 2021. Increased demand from the downstream surfactant industry added upwards pressure to the pricing of LAB in the 3rd quarter. Hampered transportation activities and high freight costs were major concerns among the regional traders.
Asia
The overall market outlook of LAB experienced a consistent rise in the pricing trend across the Asia Pacific region in Q3 2021. In India, after falling dull early in August, discussions of LAB got bullish under the influence of consistent upward crawl in crude oil values and appreciable consumption for the downstream LABSA. Besides, as deliveries for LAB in India were not sufficient to serve the overall demand, buyers were willing of restocking cargoes even at premium prices to avoid any hurt to consumer sentiments in the upcoming festive season. Linear Alkyl Benzene (LAB) prices shot up from USD 1967/MT to USD 2154/MT during the third quarter.
Europe
In the European region, the domestic market showcased mixed sentiments during the third quarter of 2021. In terms of supply, upstream feedstock Benzene supply remained tight across the region which affected the supply fundamentals of LAB. The demand for Linear Alkyl Benzene from the surfactants industry remained muted due to lesser operations at the downstream plants during the quarter.
For the Quarter Ending June 2021
North America
Despite of volatility in prices of feedstock Benzene, prices of Linear Alkyl Benzene (LAB) increased effectively increased throughout the quarter. The demand for Linear Alkyl Benzene remained sturdy to support the prices, while the availability remained tight due to lower inventory levels across the region. In addition, demand from downstream detergent and LABSA remained high that supported the overall price trajectory for LAB during this timeframe. In addition, the demand from the global market remained strong in the meantime, while the suppliers were anxious about unstable transportation activities, where the freight cost was shot up rapidly across prime trade route.
Asia
Asian market encountered firm demand for Linear Alkyl Benzene (LAB) during Q2 2021, backed by ample offtakes from downstream surfactant sector. In the Indian market, demand remained sturdy from downstream detergent manufacturers, under the second wave of COVID pandemic in the country. Therefore, prices of LAB accessed as USD 1952/MT during the final week of the quarter in India. In addition, IOCL and Gujarat government signed a MoU to provide infrastructure facility that includes tank truck loading facility for LAB, which is a small part of the big investment that aims to boost the production as well as transportation of several important commodities.
Europe
European manufacturers witnessed a stable demand outlook for LAB during this quarter, backed by sturdy demand from domestic and international market. Rising production cost was also marked as a major concern, which led to an effective hike in commodities prices. Meanwhile, Cepsa, a major oil and chemical giant of Spain, successfully switched the manufacturing process of LAB for environmental safety. This new process is expected to reduce the waste and water consumption during the LAB manufacturing process.
For the Quarter Ending March 2021
North America
Devastated production activities across the US Gulf coast halted the overall output of LAB across the region. Amidst freezing weather, several major refineries like ExxonMobil, Total, Shell etc. faced unplanned turnarounds that reduced the availability of all prime upstream chemicals like feedstock Benzene. USA faced critical shortage of Benzene, which affected the prices of almost all the downstream chemicals including LAB. It is estimated that more than 74% of total Benzene output was halted during this period, which made the LAB prices to shoot up during the quarter.
Asia
The Asian market observed mixed sentiments during this quarter, the demand remained firm from downstream detergent segments and varied country wise across the region. Sturdy crude oil values and lower spot availability of Benzene supported the price of LAB during this quarter. Hence prices of LAB followed an upward trend across the region. In the Indian markets, LAB value surged from USD 1383.7per MT (January 2021) to USD 1467.5 per MT (March 2021) despite stable demand fundamentals in the market.
Europe
Unlike the Asian and North American countries, Benzene prices in the European region followed a downward trajectory backed by adequate availability and feeble demand. Second wave of COVID-19 impacted the functionality of downstream industries, hence the demand for LAB remained low from downstream segments. However, high freight cost and shipping container shortage supported the export prices for the region.
For the Quarter Ending September 2020
North America
With increased consumption from surfactants and cleaning products as a preventive measure of the global contagion, the demand for Linear Alkyl Benzene in the region has witnessed appreciable gains. However, with reduced panic procurement and stockpiling of the product, the market fundamentals of LAB have considerably stabilized. Manufacturers have suffered fall in their profit intakes on mounting inventories of the product and no severe cut implemented in the operating rates. However, LAB market dynamics are likely to trace fast recovery with surface chemical industry continuously experimenting with new products expressing optimism over improved demand by the next quarter.
Asia
Discussions in the Asian Linear Alkyl Benzene (LAB) market were mostly thin for the quarter ending September 2020. Although negligible change was observed in demand fundamentals due to the pandemic, negotiations prompted by the traders to initiate better offtakes shrouded the contract prices due. Nonetheless, the skyrocketing demand from the detergent and cleaning industry failed to provide prominent gains as manufacturers flooded the market with excess supply. However, with consistent growth in market sentiments of feedstock Benzene, the hovering outlook of LAB is anticipated to bounce back by the next quarter.
Europe
The third quarter for the LAB market in Europe remained firm with continuous demand for surface cleaning products under strict industrial practices to maintain hygiene. Consumption of LAB in the surfactants and derivatives further exacerbated with resurgence of the coronavirus contagion in several parts of the region. With no planned turnaround in the near term, market players were cautious over supply outstripping the demand that ultimately led to reduced profit margins. As there are no hopes for complete abatement of the virus till date, the demand is likely to observe no appreciable change in future.
