The stability in prices within the U.S. LAB market in December reflected a healthy balance: feedstock supply was stable, production run rates were not erratic, and demand at home and abroad was resilient-all reasons for optimism as the market heads into the new year.
Detergent-grade Linear Alkyl Benzene (LAB) prices stabilized strongly in the US during December, bucking the general volatility observed worldwide in recent months. Looking globally, LAB markets showed weakness early in the year, not uncommon during year-end slowdowns. However, the US segment-maintained pricing stability through December 2025, founded on a continued supply position and steady feedstocks.
The driver of this price stability was a reliable feedstock supply, mainly benzene feeding directly into LAB production. During the month of December, the feedstock supply was in balance as local upstream producers retained output at steady levels and significantly dampened extreme price volatility. As benzene prices moderated, this supported producer margins and prevented forced price corrections. This, along with stable run rates at major LAB manufacturing facilities, ensured that supply met overall demand without significant inventory build-ups or shortages.
The fact that the majority of the LAB plants along the Gulf Coast, like the rest of the U.S. petrochemical production sites, maintained seamless operating activities with a lack of unplanned or maintenance-related shutdowns went a long way in reassuring the markets that suppliers would be able to satisfy their commitments within their domestic as well as global markets without the need to bank on aggressively priced offers. The lack of bottlenecks associated with the logistical challenges of the end of the year also had a positive effect on delivery schedules.
Regarding the demand side, the demand from the home market and the export demand were steady. On the U.S. demand side, the steady consumption from the detergent and cleaning product market served as a steady base demand throughout December despite the weaker seasonal demand. Simultaneously, the export demand from Latin America and some other Asian countries kept the LAB market active. Although the export volume of LAB was no longer at peak levels, the demand from the exports did suppress U.S. LAB prices to some extent.
Looking forward, as per ChemAnalyst forecasts, the prices are set to experience a cautiously positive movement for LAB during the early part of 2026. The feedstock market is expected to retain a moderate pace, while the downstream market for detergents/surfactants is anticipated to receive a boost post-winter month. This is expected to provide a boost to the prices. The export market is set to experience a boost as economic activity normalizes globally.
