Global LAB Market Split in early June: Cleaning Sector Demand Pushes Up Prices in West

In early June 2025, the LAB market moved in different directions across China, Germany, and the U.S. In China, prices stayed steady this week as supply and demand were well balanced. In contrast, LAB prices rose in Germany and the U.S. due to tight supply and strong demand from cleaning product industries. Benzene, the raw material, stayed mostly stable everywhere, which helped keep production costs steady. Still, issues like shipping delays and stock levels affected how the market performed in each country.

Key Takeaways:

• In China, LAB prices stayed stable as supply matched demand, and lower benzene costs helped keep production steady.
• In Germany, LAB prices jumped due to strong demand from the LABSA industry and limited supply caused by plant maintenance and port delays.
• In the U.S., LAB prices increased because of tight supply and strong demand, even though benzene feedstock costs remained unchanged.
• Benzene feedstock prices stayed steady in all regions, helping LAB producers manage their production costs more easily.

China’s LAB market stayed steady in early June. There was enough stock at ports and plants were running smoothly, which helped balance out the weak demand at home. Lower benzene prices made production cheaper, but slow industrial activity and low demand from the LABSA sector after the holidays kept prices from rising. Exports to Southeast Asia continued at a steady pace, avoiding any excess supply. Still, with no strong boost in local demand, LAB prices did not change much.

LAB prices in Germany rose by 2.8% in early June, mainly because of strong demand from the LABSA industry and limited supply. Even though benzene costs stayed steady, producers faced issues getting enough raw materials and dealing with shipping delays. High freight charges and fewer imports added to the supply problems, making it harder to meet demand. Steady exports to nearby countries also helped keep prices on the rise in a market already struggling with supply shortages.

LAB prices in the U.S. rose by 2.1% in early June, driven by steady demand from household and industrial cleaning sectors. Supply was tight due to low inventory levels and cautious restocking, partly because of concerns over tariffs. Although benzene prices stayed stable, rising freight and packaging costs made production more expensive. Strong export demand from Latin America also added pressure on local supply, pushing prices higher.

Imports helped keep LAB prices steady in China, but they could not fix the supply shortage in Germany and the U.S. In those regions, not enough product was available, so buyers started competing more, which drove prices up. Many also bought early, and with seasonal demand for cleaning products picking up, LAB demand grew even stronger—especially in Germany and the U.S.

As per ChemAnalyst, LAB prices in China may drop in June due to low demand and sufficient supply.  Meanwhile, in Germany, prices are expected to stay high because of strong LABSA demand and limited supply. In the U.S., prices will likely remain firm for now but might dip slightly in July as buying slows and supply improves.