US Linear Alpha Olefin Prices Slide 17.1% on Soft Demand and High Inventories

US Linear Alpha Olefin (LAO) markets ended June with a bearish tilt as ample regional supply and softer downstream demand pressured FOB US Gulf levels. Ethylene costs declined sharply early, trimming feedstock expenses and supporting runs; mid-month higher operating rates and export availability expanded inventories. Late June saw weaker procurement from domestic and international buyers, with comfortable onshore volumes sustaining selling momentum through month-end. The tone remained bearish as downstream buyers delayed purchases, leaving traders to clear surplus cargoes amid tepid demand support. Weakness in LAO-consuming sectors weighed on sentiment; polyethylene comonomer purchases eased as resin margins stayed under pressure, and lubricant buyers remained cautious. Export inquiries from Latin America and Europe softened as buyers favored existing inventories. C20 and C10 blends fell roughly seventeen percent. Near-term outlook for Linear Alpha Olefin remains mixed, with weakness likely before an autumn rebound. Outlook hinges on demand recovery, export inquiry levels, and broader logistics or geopolitical developments.