For the Quarter Ending March 2025
North America
In Q1 2025, the North American Linear Alkyl Benzene (LAB) market showed a fluctuating performance, initially declining in January before posting moderate gains through February and March. The early-quarter downturn was driven by seasonally weak demand from key segments like detergents and cleaning products, compounded by colder weather and ample inventories. Although feedstock costs rose particularly for benzene, producers struggled to pass on these increases due to sluggish downstream consumption, pushing prices downward early in the quarter.
From February onward, market conditions began to stabilize as demand from the LABSA industry rebounded, supported by renewed buying from both domestic and export markets. Improved weather conditions and stronger economic activity bolstered consumption in industrial and household cleaning sectors. Additionally, concerns over potential tariffs and rising feedstock costs encouraged preemptive procurement, supporting a gradual price recovery. Consistent demand and higher production expenses helped maintain this upward trend through March, with downstream industries continuing to absorb available volumes.
Despite the late-quarter improvement, overall prices in Q1 2025 remained 8% lower compared to Q4 2024. The quarter concluded with a 1.2% increase in March for detergent-grade LAB FOB Louisiana, bringing the price of reflecting the market’s cautious recovery amid ongoing inflationary and policy-related uncertainties.
APAC
In Q1 2025, the Linear Alkyl Benzene (LAB) market in the Asia-Pacific (APAC) region faced a mixed performance, with prices declining through January and February due to weak seasonal demand, ample inventories, and sluggish export activity. Downstream consumption in key segments like detergents and cleaning products remained subdued after the New Year holidays, and the region also saw limited international buying, particularly from China. Despite rising costs for feedstock benzene, manufacturers struggled to pass on higher input prices due to weak purchasing momentum. Seasonal weather and slower industrial activity further compounded the downward trend during the early part of the quarter. However, the market saw a moderate recovery in March as improved domestic demand and steady LABSA consumption supported price stabilization. Easing benzene costs reduced production expenses, helping producers maintain output and price competitiveness. Export activity picked up slightly, and regional logistics costs fell, improving supply chain fluidity. Despite external macroeconomic uncertainties and geopolitical tensions, internal market fundamentals in South Korea and neighboring regions remained steady, helping limit volatility. By the end of March 2025, the quarter closed with LAB FOB Busan prices increase of 0.7% but an overall 6% decrease in Q1 2025 compared to Q4 2024, underscoring cautious optimism amid ongoing demand challenges.
EUROPE
In Q1 2025, the Linear Alkyl Benzene (LAB) market in Europe showed a mixed performance marked by an initial decline followed by a steady recovery. January saw price drops due to post-holiday seasonal weakness, sluggish demand from the LABSA sector, and regional oversupply. Despite elevated feedstock benzene costs prices, downward pressure from excess inventories and falling transportation rates hindered market sentiment. However, starting February, the market shifted upward, driven by rising input costs and improved demand from the detergent and surfactant industries. Supply tightness in select areas and a rebound in industrial activity supported the bullish trend. By March, the LAB market stabilized, with steady procurement from downstream sectors and manageable production costs despite currency-related import inflation. The weaker euro and persisting inflation added complexity, yet stable supply-demand conditions and easing logistics costs helped maintain equilibrium. Rising consumption in both domestic and export markets strengthened the recovery through late March. The quarter concluded with the price increase of LAB FOB Hamburg of 2.5% in March. However, compared to Q4 2024, overall Q1 prices declined by 6%, highlighting continued pressure on margins amid fluctuating costs and cautious demand recovery.
MEA
In Q1 2025, the Linear Alkyl Benzene (LAB) market in the Middle East and Africa (MEA) region faced a mixed scenario, characterized by initial price declines followed by a slight recovery in March. In January and February, prices saw downward pressure due to subdued demand from key downstream sectors, particularly detergents and cleaning products, as seasonal factors led to reduced consumption. Additionally, excess supply in the market and weak export demand, especially from Asian and European markets, exacerbated the pricing challenges. Despite rising feedstock costs for benzene, which typically push prices up, the sluggish demand from both domestic and international markets prevented significant price increases. However, in March, the market showed signs of recovery with a moderate price increase of 0.7%, driven by improved domestic consumption, particularly in anticipation of increased demand during the summer months. The quarter ended with a 4% decrease in LAB prices compared to Q4 2024. While a slight recovery is noted, challenges such as fluctuating feedstock prices, inflationary pressures, and weak export demand continue to affect the market's outlook, leading to cautious expectations for the near future.
For the Quarter Ending December 2024
North America
The North American Linear Alkyl Benzene (LAB) market in Q4 2024 saw a 12% decrease in prices compared to Q3. Despite stable feedstock costs, weak demand from key sectors like detergents, cleaning products, and construction dampened market activity. Seasonal factors, including the typical year-end slowdown and colder weather, further suppressed demand.
Supply conditions remained stable due to sufficient production levels, although logistical disruptions, such as port congestion and labor strikes at Canadian ports, posed challenges. Freight rate pressures, rising slightly in some regions, added strain to the supply chain but did not significantly impact overall availability.
Global demand remained muted, especially from Europe and Asia, which helped maintain a balanced market. Despite the stable supply, trade uncertainties and slower industrial activity kept pressure on prices, which continued to fall throughout the quarter. As quarter ended, the price for Linear Alkyl Benzene detergent grade FOB Louisiana (USA) stood at USD 1930/MT, marking a decline from previous quarters. The market outlook remains cautious, with weak domestic consumption and external economic risks limiting any near-term recovery.
APAC
In Q4 2024, the linear alkyl benzene (LAB) market in the APAC region experienced a downward pricing trend, primarily due to weakening demand from key downstream sectors like detergents and cleaning agents. This slowdown was exacerbated by seasonal factors, including reduced consumption during the New Year holidays and ongoing geopolitical uncertainties impacting trade flows. Although supply levels remained adequate, the market faced challenges from logistical disruptions and excess inventory, further suppressing prices. In comparison to previous quarters, the LAB market has seen reduced stability, with pricing pressures mounting throughout the quarter. Increased production from domestic manufacturers helped to maintain supply; however, a lack of significant recovery in downstream consumption limited the potential for price increases. The expectation for improved demand post-holidays may offer some hope for market recovery. The quarter-ending price for Linear Alkyl Benzene (LAB) FOB Busan (South Korea) fell to USD 1549/MT and reflecting a decline of 4% compared to Q3. Overall, the combination of declining prices, subdued demand, and persistent challenges will require market participants to implement strategic adjustments to navigate the uncertainties ahead.
EUROPE
In Q4 2024, the Linear Alkyl Benzene (LAB) market in Europe faced persistent challenges, with prices declining by 15% compared to Q3. This downturn was driven by weaker demand from downstream sectors, particularly detergents and cleaning products, influenced by seasonal slowdowns and cautious consumer spending. Supply remained relatively stable, supported by adequate domestic production and inventories, despite occasional logistical disruptions due to port congestion, particularly at Hamburg. This was exacerbated by geopolitical uncertainties and supply chain issues. The LAB market in Germany, a focal point of price fluctuations, exhibited moderate demand early in the quarter, primarily from the LABSA industry, but showed signs of softening as the year-end approached. Manufacturing activity was subdued, in line with the broader economic slowdown, contributing to reduced demand. The quarter-ending price for Linear Alkyl Benzene (LAB) FOB Hamburg (Germany) stood at USD 1268/MT, reflecting the drop from Q3. This price trend indicates the market's vulnerability to seasonality, geopolitical instability, and reduced industrial production, suggesting a challenging outlook as economic uncertainties persist.
MEA
In Q4 2024, the Linear Alkyl Benzene (LAB) market in Middle East and Africa (MEA) region faced a challenging period, marked by an 8% price decline compared to Q3. The market saw continued subdued demand, particularly from downstream sectors such as detergents and cleaning agents, which traditionally slow down towards the end of the year. This weakened demand, combined with stable feedstock prices, exerted downward pressure on LAB prices. The oversupply situation was further exacerbated by weak export demand from key regions like Asia and Europe. Additionally, seasonal factors and reduced manufacturing activity contributed to the lack of momentum in the market. Despite occasional disruptions in supply due to geopolitical tensions and weather-related challenges, Saudi Arabia's LAB supply remained steady, ensuring consistent domestic availability. By the end of the quarter, the price of LAB FOB Jeddah stood at USD 1525/MT, reflecting the broader trend of price reductions. Market participants, facing a combination of weak demand and supply chain uncertainties, are taking a cautious approach, with little expectation of an immediate market rebound. The outlook for the LAB market remains cautious, with further challenges anticipated from oversupply and restrained consumption in the near term.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American market for Linear Alkyl Benzene (LAB) experienced a notable decline in pricing, driven by several critical factors. Compared to both the same period last year and the previous quarter, LAB prices showed a consistent downward trend. This decline was largely attributed to weak demand from downstream industries, particularly in the detergents and cleaning products sectors, which significantly impacted purchasing activity. The situation was further exacerbated by easing feedstock Benzene prices, which added to the overall reduction in LAB pricing.
Focusing specifically on the USA, which saw the most substantial fluctuations, the market exhibited a distinctly negative pricing environment throughout the quarter. By the end of Q3 2024, the price change for Linear Alkyl Benzene detergent grade FOB Louisiana was 2% in September as compared to the previous month, indicative of the prevailing bearish sentiment among market participants.
This persistent decrease in prices highlights the ongoing challenges confronting the LAB market, characterized by subdued demand and the influence of falling feedstock costs exerting downward pressure on pricing. Overall, the market dynamics suggest that LAB producers will need to adapt to these conditions to remain competitive amid evolving industry demands.
APAC
In Q3 2024, the Linear Alkyl Benzene (LAB) market in the APAC region experienced a notable decline in prices, primarily driven by weak demand and stable supply conditions. Several factors contributed to this downward trend, including reduced downstream demand from the LABSA industry and an abundance of LAB in the market. Additionally, stable feedstock Benzene prices played a role in maintaining the price equilibrium despite the challenges. China saw the most significant fluctuations in LAB pricing, with a noticeable decrease compared to both the same quarter last year and the preceding quarter in 2024. The quarter ended with a 6.4% decline in the price of Linear Alkyl Benzene (LAB) FOB Nanjing, highlighting the market's persistent struggles. This overall downward trajectory in pricing underscores a challenging market environment, characterized by a prevailing negative sentiment as demand pressures coupled with stable supply dynamics exerted downward influence on prices throughout the quarter. These conditions indicate that market players may need to reassess their strategies to navigate the complexities of the LAB market in the APAC region, particularly in response to shifting demand patterns and the need for competitive pricing.
Europe
Throughout the third quarter of 2024, the Linear Alkyl Benzene (LAB) market in Europe faced significant challenges, evidenced by a consistent decline in prices throughout the quarter. This downward trend is largely attributed to a confluence of factors, including weak demand from downstream industries, an oversupply of LAB, and decreased feedstock costs. Compared to the same quarter last year, the market showed a notable shift, reflecting ongoing negative sentiment that had persisted from the previous quarter. Germany emerged as a focal point for the most significant price fluctuations within the region, demonstrating how local dynamics echoed broader market trends. The quarter-ending price saw a decrease of 6.2% for FOB Hamburg (Germany), further underscoring the prevailing negative pricing environment. This decline highlights the difficulties the European LAB market is encountering, exacerbated by global economic uncertainties and a lack of robust demand from key sectors. Overall, the quarter painted a bleak picture for the LAB industry, characterized by decreasing prices driven by complex market dynamics.
MEA
In Q3 2024, the Linear Alkyl Benzene (LAB) market in the Middle East and Africa (MEA) region experienced a notable decline in prices, highlighting the industry's challenging dynamics. Several key factors contributed to this downward trend. Primarily, there was subdued demand from downstream sectors, particularly from LABSA, affecting both domestic and international markets. This weakened demand exerted considerable downward pressure on LAB prices. Additionally, supply chain disruptions caused by vessel delays and ongoing geopolitical tensions further complicated market conditions, exacerbating price declines. The overall market sentiment was shaped by stable feedstock prices coupled with persistent global economic uncertainties, which created an overall negative pricing environment for LAB. In Saudi Arabia, the impact was particularly pronounced, where the market saw the most significant price fluctuations within the region. By the end of the quarter, the price of Linear Alkyl Benzene (LAB) FOB Jeddah decreased by 1.5%, underscoring the prevailing negative pricing dynamics. This situation illustrates the complexities facing the MEA LAB market, with supply constraints and weak demand contributing to the industry's struggles in maintaining stable pricing.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American market for Linear Alkyl Benzene (LAB) experienced a significant upward trajectory in pricing. This increase was driven by robust demand from downstream detergent and surfactant industries, heightened by the seasonal summer surge. Elevated temperatures led to greater LAB consumption for cleaning products due to increased outdoor activities and soiling. Additionally, the rise in upstream crude oil prices, influenced by geopolitical tensions and OPEC's supply cuts, significantly impacted LAB production costs. Supply chain disruptions, including higher freight rates and container shortages, further exacerbated pricing pressure.
In the USA, LAB prices reflected a bullish trend throughout Q2 2024, supported by seasonal demand and persistent supply chain challenges. Year-over-year, LAB prices surged by 16% from the same quarter last year, indicating robust growth. Compared to the previous quarter, prices increased by 6%, demonstrating a consistent upward trend.
Within the quarter, prices rose by 8% from the first to the second half, underscoring the steady increase. The quarter ended with LAB detergent grade FOB Louisiana prices at USD 2350/MT, driven by strong demand, escalating production costs, and ongoing supply chain constraints.
APAC
In Q2 2024, the Linear Alkyl Benzene (LAB) market in the APAC region remained stable due to a balanced demand-supply gap. However, in the first month of the quarter, LAB prices increased by 1.4%, driven by a surge in demand for surfactants from both local and overseas markets. The primary catalyst behind this bullish sentiment was the rising temperatures in Asia and Europe, which spurred higher LAB consumption in the surfactant industry. Elevated temperatures lead to increased outdoor activities and greater soiling, boosting demand for cleaning products. Surfactants, essential in cleaning agents, detergents, and household cleaners, saw heightened demand. However, in the following two months, LAB prices decreased by 0.8% and 0.3% respectively. This decline was due to ample raw material availability within the country, facilitated by easing feedstock Benzene prices. Additionally, lower freight rates compared to the previous year, driven by reduced overseas demand, contributed to the downward price trend. Overall, the quarter showcased a dynamic interplay of rising early demand and subsequent price adjustments influenced by raw material availability and logistics.
Europe
In Q2 2024, the European Linear Alkyl Benzene (LAB) market experienced notable price increases driven by heightened demand from the downstream surfactant industry, increased overseas inquiries, and rising temperatures. These factors collectively propelled LAB prices upward, creating a bullish market sentiment. The supply chain faced moderate constraints due to elevated freight rates and material shortages, exacerbated by global shipping disruptions, such as vessel diversions around the Cape of Good Hope. In Germany, the market exhibited the most pronounced price changes in the region. Increased demand for cleaning products, spurred by warmer weather and heightened outdoor activities, contributed to the surge in LAB prices. Compared to the same quarter last year, prices surged by 11%, reflecting robust market dynamics and economic conditions. The quarter-on-quarter increase from Q1 2024 was 4%, underscoring persistent upward momentum. Prices rose by 2% between the first and second halves of the quarter, signaling consistent growth throughout the period. By the end of Q2 2024, the price of LAB in Germany reached USD 1620/MT FOB Hamburg. This steady increase indicates a positive pricing environment driven by strong seasonal demand, increased operational costs, and strategic market positioning by suppliers.
MEA
In Q2 2024, the Middle East and Africa (MEA) region experienced an uptrend in Linear Alkyl Benzene (LAB) prices, driven by several factors. Increased production costs due to higher feedstock Benzene prices were crucial, with the Benzene surge attributed to geopolitical tensions and reduced crude oil output by OPEC countries. Additionally, substantial challenges in the global freight industry, including increased freight rates, further exacerbated production costs and logistics issues. Seasonal demand, particularly from the surfactant industry, also played a pivotal role, with heightened temperatures in the Middle East and European markets boosting LAB consumption for cleaning products. Saudi Arabia saw the most significant price changes in the region. Overall, there was a steady increase in LAB prices, with seasonality playing a crucial role. Compared to the same quarter last year, LAB prices rose by 1%, reflecting a consistent upward trend. By the end of the quarter, the price of LAB reached USD 1710/MT FOB Jeddah, illustrating the influence of these cumulative factors on the pricing trajectory. The quarter was marked by a positive pricing environment driven by increased costs, heightened demand, and logistical challenges.
