In the first week of May 2025, Linear Alkyl Benzene (LAB) prices moved in different directions across Asia and Europe. In China, prices stayed steady due to balanced supply and steady demand from LABSA industry. India, however, saw a moderate price rise due to limited supply and strong demand from the fast-moving consumer goods (FMCG) sector. Meanwhile, in Germany, prices jumped sharply as manufacturing activity picked up and LAB supply remained tight across the region.

Key Takeaways:

• LAB prices held steady in China as inventories were adequate and demand from the surfactant sector remained consistent.
• Indian LAB Prices moved up due to tight supply and strong demand from the FMCG sector, despite lower raw material costs.
• German LAB market rose sharply, supported by a rebound in manufacturing and limited product availability in the market.

In China, LAB prices stayed steady in the first week of May. Lower feedstock benzene prices helped bring down production costs, which made it easier for manufacturers to keep prices stable. Production levels stayed consistent, and there was enough supply at ports to meet local needs and moderate export demand to Southeast Asia. Demand from detergent makers, especially those producing LABSA, stayed steady as more household cleaning products were used with the arrival of warmer weather. 

LAB prices in India went up by 0.7% in the first week of May, mainly due to strong local demand and limited supply. The FMCG sector, which grew 11% year-on-year in Q1 2025, continued to underpin LAB demand, especially for detergent and personal care applications.  Rural areas drove most of the demand, with more people buying affordable, small-sized products as summer approached. 

LAB prices in Germany jumped by 3.1% in the first week of May, driven by a pickup in local manufacturing and strong demand across Europe. Production of investment goods increased, and more export orders boosted the need for LABSA. Seasonal demand for cleaning products also added to the overall rise in consumption.

Although feedstock benzene prices dropped, LAB supply in Germany remained tight. Product availability was limited, and producers were cautious due to ongoing job cuts and shrinking inventories, which added to the supply pressure.

ChemAnalyst expects LAB prices in China and India to come down in the second half of May, as local demand starts to ease, and supply remains sufficient. In contrast, prices in Europe—especially in Germany—are likely to keep rising, with limited supply and steady demand continuing to push the market upward through the rest of the month.