The market for Linear Alpha Olefin (LAO) in South Korea is expected to continue to be supported by tight merchant supply and continued consumer demand through December 2025. The majority of the C10 LAO product produced has been trapped in the domestic market for use by manufacturers of synthetic lubricants and polyethylene's; also, reduced volume of exported products from the Middle East has further reduced the balance of supply within the region. The price for ethylene from the feedstock remained fairly stable and therefore, the LAO product value has continued to be supported and allowed LAO producers a high level of confidence in their pricing strategies. The downstream manufacturers focused on specialty polyethylene's polyalphaolefin lubricants, and surfactant products continue to have healthy production levels driving strong domestic offtake and solid export inquiries from both Northeast and Southeast Asia. With inventories at low levels and disciplined production and inventory levels, the LAO marketplace finished out 2025 on a strong and stable footing.
