For the Quarter Ending June 2023
North America
During the second quarter of the year 2023, the LAB prices in North America have shown a bearish trend. The ample supply of the product, along with subdued demand, has led the costs of the product to a downturn. Due to market uncertainties, the American market has shown lackluster demand from the downstream LABSA and surfactant industries. The increased interest rates and the fear of recession have caused consumers to be reluctant to make fresh purchases and make only need-based purchases. The upstream Benzene and Crude oil has shown mixed sentiments as the prices rose in April but fell continuously for the next two months influencing the LAB prices. The price of Linear Alkyl Benzene Detergent grade FOB Louisiana (USA) was USD 2217/MT in April, USD 2192/MT in May, and USD 2060/MT in June 2023. The price decline for LAB was around 6% in the last month of the quarter. As per ISM data, the manufacturing PMI index has been declining, as 47.1 in April, 46.9 in May, and 46 in June, indicating a contraction in the manufacturing sector in the US.
APAC
Linear Alkyl Benzene (LAB) prices have fluctuated in the year's second quarter. The prices surged in April but fell for the next two months, May and June. The decline was primarily due to the subdued demand from the downstream surfactant industries. The Chinese market is a major importer of LAB. However, the slowdown in the Chinese economy and weaker market sentiments has caused the prices to decrease in the Asia- Pacific region. The excess inventories have led the producers to curtail their production rates to avoid overstocking the inventories and have caused sellers to offer discounts to sell the product. The South Korean LAB prices were fluctuating in this quarter as the prices were quoted to be USD 1863/MT in April with a marginal surge of 0.4%, prices were USD 1733/MT in May, which counts to a decline of 7% and in June the price was USD 1664/MT, with 4% drop. The upstream Benzene has also shown mixed sentiments as the prices rose from 7% in April and fell consecutively by 10% in May and June.
Europe
This quarter, the Linear Alkyl Benzene (LAB) prices have shown fluctuations in the price movement as they increased in the month of April but declined in May and June. The market dynamics and conditions were impacted on account of recession and geopolitical tensions due to the Russia-Ukraine war. The upstream Benzene also showed fluctuations in the second quarter. The ease in the Benzene and Crude oil prices in May and June has supported the downward trend for the LAB in Germany. The FOB Hamburg (Germany) LAB prices were USD 1692/MT in April, USD 1540/MT in May, and USD 1494/MT in June. The LAB prices declined by 1% in April but fell by 9% and 3% in May and June, respectively, in the German market. The annual inflation rate in the Euro area fell to 5.5% in June 2023 from 6.1% in May 2023, as per Eurostat data, the statistical office of the European Union. Although the inflation rate has reduced from the all-time hike, the rates still remain high, keeping consumers hesitant to buy products.
MEA
During the Q2 of this year, the LAB prices have shown fluctuations in Middle East Asia region. Linear Alkyl Benzene (LAB) prices have surged in Saudi Arabia for the first two months, April and May, but decreased in June. The fluctuation in LAB prices was seen due to changing prices of upstream Benzene as a similar trend in prices was followed. The price increase was seen due to raised demand for LAB from the downstream surfactant industry in the domestic market of Saudi Arabia; also, the raised prices of Crude oil have strengthened LAB prices. The decline in June was seen as the Crude Oil and Benzene prices eased, and the demand was subdued along with a surplus product supply. The price for LAB Fob Jeddah in Saudi Arabia was USD 1710/MT in April, USD 1830/MT in May, and USD 1739/MT in June. The price rose by 2% and 7% in April and May, respectively, while a 5% decline was observed in June.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, the Linear Alkyl Benzene market showcased bullish sentiments on account of rising demand and upstream (crude oil) prices in the regional market. Positive changes in the dynamics of the feedstock Benzene market have been brought about by active procurement from the LAB industries. In addition, market activity increased because of the robust economic expansion. As several petrochemical refineries have resumed their full production levels, the demand for downstream industrial surfactants increased, contributing to the demanding hike of LAB in the US. The cost of Linear Alkyl Benzene in the American market increased towards the end of the quarter on the back of rising upstream Benzene costs in the US. The rising demand in March for downstream surfactants assists the increasing cost of LAB in the American market.
Asia-Pacific
This quarter, the price of Linear Alkyl Benzene in Asia has been steadily rising. The price of LAB has grown in South Korea as a result of rising upstream Benzene costs. An average supply of LAB has been produced due to the rising cost of upstream Benzene in the South Korean market. Furthermore, the region's total demand remained high. In South Korea, there was a strong need due to the growing end-user demand for downstream surfactants and detergents. The rising cost of LAB in the Chinese market was being driven by the country's growing demand in the downstream laundry industry. The price of upstream Benzene in China rose, which drove up the price of Chinese LAB. Linear Alkyl Benzene (LAB) FOB Nanjing (China) USD 1762/MT.
Europe
The Linear Alkyl Benzene market displayed negative market sentiments throughout the first quarter of 2023 as a result of shifting upstream (crude oil) prices in the global market. Along with fluctuating crude oil prices on the regional market, the product's demand fell. The German market for LAB pricing has shrunk due to a confluence of numerous subpar consumer demands and declining upstream and energy prices. The market for LAB pricing in Germany has shrunk as a result of a combination of low customer demand, plentiful supply, and rising energy prices. Despite the region's seasonal variations, the inflation rate stabilized as the demand for the product decreased.
For the Quarter Ending December 2022
North America
The prices of Linear Alkyl Benzene (LAB) in the American market dropped throughout the fourth quarter of 2022. The below-average demand for detergents and downstream surfactants is the major reason behind the declining price trend during the fourth quarter. During the first half of Q4, upstream benzene's easing price abetted LAB's easing price in the US. In the second half of Q4 2022, despite the rise in upstream benzene costs due to the poor demand during the festive season and destocking activities brought down the prices of LAB in the American market. The price of LAB during the end of Q4 2022 in the US was recorded at USD 2120/MT Linear Alkyl Benzene detergent grade FOB Louisiana (USA).
APAC
The price of Linear Alkyl Benzene (LAB) during the end of Q4 2022 in the Chinese market was recorded at around USD 1643/MT Linear Alkyl Benzene (LAB) FOB Nanjing. The prices decreased throughout the fourth quarter of 2022, which reflects the price trend of upstream benzene in the Chinese market. The rising covid cases and the poor economic situation in China is a major factor that abetted the drop in LAB prices during the fourth quarter of 2022. Throughout the Q4 of 2022, LAB prices in the Indian and south Korean markets followed the same price trend in the Chinese market since China is one of the major exporters.
Europe
Linear Alkyl Benzene (LAB) was priced at roughly USD 2190/MT Linear Alkyl Benzene (LAB) FOB Hamburg at the end of Q4 2022 in the German market. In line with the declining price pattern of upstream benzene in the German market, prices fell during the entire fourth quarter of 2022. The poor buying sentiments during Q4 2022 in the European region from the end-users and several industries are due to high inflation rates in several European countries. The slight easing of the energy prices during Q4 2022 in Europe assisted the price drop of LAB in European countries by reducing operation costs.
For the Quarter Ending September 2022
North America
The prices of Linear Alkyl Benzene (LAB) in the American market dropped during the start of the third quarter due to decreasing cost of upstream Benzene in the domestic market, caused by weak buying sentiments for Benzene globally. The benzene price drop during the start of Q3 brought down the operation cost of LAB, easing the price of LAB in the US. The second half of Q3 2022 in the US witnessed a price rise of LAB in the US as the supply of upstream Benzene from South Korea was disrupted due to cyclones in the yellow sea route. The price of LAB in the US was recorded at around USD 2217/MT at the end of Q3 2022.
APAC
Linear Alkyl Benzene (LAB) prices in the Chinese market dropped during the start of the third quarter on the back of poor buying sentiments for upstream Benzene in China. The demand for upstream Benzene was very poor, which reduced the production cost of LAB in China, leading to the easing of LAB prices. However, the situation changed during the latter half of Q3 due to rising demand for downstream cleaning products, where the requirement was raised on the back of the mid-autumn festival. The South Korean LAB market followed the same trend as the Chinese market, and the price of LAB during the end of Q3 in South Korea was recorded at around USD 1875/MT.
Europe
The easing demand for upstream Benzene in the European markets eventually caused the price fall of Linear Alkyl Benzene (LAB) during the first half of the third quarter of 2022. Also, Increased demand for downstream surfactants in the Europe market started to ease during the start of Q3, which led to the fall of LAB prices in Europe during the same time period. Despite weak upstream prices in Europe, the high energy price pushed up the operation cost of LAB and raised its prices during the latter half of Q3 2022. The price of LAB in Germany during the last month of Q3 was recorded at around USD 3553/MT.
For the Quarter Ending June 2022
North America
The price of Linear Alkyl Benzene (LAB) in the American market rose gradually throughout the second quarter of 2022. Historically, the end of the second quarter is when chemical refineries and industries undergo annual maintenance. So, the demand for industrial surfactants in the domestic market. Linear Alkyl Benzene Sulfonic Acid (LABSA), the highly preferred industrial surfactant, was in high demand in the second quarter of 2022. LABSA is a downstream product of LAB, so the increased demand for LABSA drove up the need for LAB in the domestic market. The high cost of upstream Benzene in the domestic market assisted the increasing price trend of LAB in the US during Q2 2022.
APAC
In the Indian market, the Linear Alkyl Benzene (LAB) price rose steadily across the second quarter of 2022. The price hike happened primarily due to high demand from end-users and households for detergents and laundry cleaners. The demand from LABSA manufacturers increased as the need for industrial surfactants peaked during the end of Q2 2022. The high price of upstream Benzene on the back of high feedstock crude oil costs abetted the uprising trend of LAB prices in India. In China, the price trend of LAB dropped during MAY as covid regulations dampened the demand for the commodity in the domestic market. The pricing movement turned over the following month owing to increased demand from industries for surfactants.
Europe
In the European market, the prices of Linear Alkyl Benzene (LAB) witnessed a vast hike during the mid of second quarter of 2022. The high hike in the price was significantly due to the energy crisis in the continent, which drove up the production and transportation costs of the commodity. The rising price of upstream Benzene due to the high feedstock price on the continent due to the ongoing war between Russia and Ukraine abetted the price hike of LAB. But during the end of Q2, the prices of LAB in the domestic markets were artificially brought down because of no offtakes on account of high cost.
For the Quarter Ending March 2022
North America
Prices of linear alkyl benzene in the United States market increased throughout the first quarter of 2022. Prices hiked on the back of the inclining feedstock (crude oil) prices on the account of the escalating geo-political tensions in the eastern European region in mid-February. When Russia invaded Ukraine, it worsened the situation of the crude oil supply globally leading to high feedstock Benzene prices. At the end of the Q1 of 2022, linear alkyl benzene traded around USD 2080/MT in the US. Major companies and end–users’ preference of linear alkyl benzene as a detergent due to its eco-friendly nature assisted in the inclination of linear alkyl benzene demand in the American market.
Asia Pacific
The Asian market for linear alkyl benzene (LAB) started on a bullish trend as the availability of upstream Benzene was low owing to the failure to meet the supply need of upstream crude oil in the Asian countries. The prices hiked in March again as production in China remained halted on the account of winter Olympics. China is the major producer and exporter of LAB to Asian countries especially India, the production halts in February reflected in the price of the commodity during March. The price of LAB in the Indian market during the end of the first quarter of 2022 was USD 2848/MT.
Europe
Unlike the trends of linear alkyl benzene prices in the other markets, in the European market the price of linear alkyl benzene has been stable with very negligible price fluctuation throughout the first quarter of 2022. Europe despite being the most affected region from the invasion of Ukraine suffered unprecedented shortage of natural gas and crude oil but did not see a price hike of linear alkyl benzene as the Europe had strong inventory of detergent and cleaning products. LAB was assessed at nearly USD 2475/MT in the German market throughout Q1 of 2022.
For the Quarter Ending December 2021
North America
LAB market in North America showed signs of bullishness with consistently rising prices during the whole of October and mid-November. The price rise was majorly driven by the tightness in benzene feedstock supplies on raging upstream crude oil prices along with low productions in the USA facilities that were on the path to recovery from Ida hurricane inflicted damages. Crippled spot activity also remained a major cause of concern for the traders. In December, the USA market witnessed down-revised prices on the boost in raw material availability towards end-November and December. Also, the relaxing port clogging enabled improved offtakes in the international downstream industries causing the December prices in the USA to hover around USD 1840/MT FOB Louisiana. Meanwhile, the local demand in the household cleaning and personal care sector also showed stability.
Asia
The discussions for LAB in the Asian market demonstrated firmness until mid-November under the influence of strong-getting benzene feedstock on the back of depleting upstream crude oil inventories. With a slight slip in the prices on the capped upstream market, the downstream cleaning and detergent industry accelerated their buying patterns during November-end in order to fill their inventories to avoid any delays in catering to customer demands. The improvement in import activity, as well as the year-end stock-clearing tendency among the Indian producers tamed LAB prices in the country, causing them to hover in the range of USD 1718/MT to USD 1908/MT during December.
Europe
High volatility in the upstream crude oil prices and crawling up demand from the downstream industries kept the prices of LAB to stay buoyed in Europe for a major portion of the quarter. Despite improvement in feedstock availability, December prices of LAB in Germany reached USD 2430/MT FOB Hamburg after showing a marginal fall from October and November trends owing to the surge in demand fundamentals due to increased cleaners and detergent consumption with the resurgence in Coronavirus cases.
For the Quarter Ending September 2021
North America
The prices of Linear Alkyl Benzene (LAB) rose significantly in North America in Q3 2021 on the back of the consistent demand from the downstream industries. A tight supply of upstream benzene due to lower inventory levels and increasing raw material cost added to the supply side constraints in the production of LAB during Q3 2021. Increased demand from the downstream surfactant industry added upwards pressure to the pricing of LAB in the 3rd quarter. Hampered transportation activities and high freight costs were major concerns among the regional traders.
Asia
The overall market outlook of LAB experienced a consistent rise in the pricing trend across the Asia Pacific region in Q3 2021. In India, after falling dull early in August, discussions of LAB got bullish under the influence of consistent upward crawl in crude oil values and appreciable consumption for the downstream LABSA. Besides, as deliveries for LAB in India were not sufficient to serve the overall demand, buyers were willing of restocking cargoes even at premium prices to avoid any hurt to consumer sentiments in the upcoming festive season. Linear Alkyl Benzene (LAB) prices shot up from USD 1967/MT to USD 2154/MT during the third quarter.
Europe
In the European region, the domestic market showcased mixed sentiments during the third quarter of 2021. In terms of supply, upstream feedstock Benzene supply remained tight across the region which affected the supply fundamentals of LAB. The demand for Linear Alkyl Benzene from the surfactants industry remained muted due to lesser operations at the downstream plants during the quarter.
For the Quarter Ending June 2021
North America
Despite of volatility in prices of feedstock Benzene, prices of Linear Alkyl Benzene (LAB) increased effectively increased throughout the quarter. The demand for Linear Alkyl Benzene remained sturdy to support the prices, while the availability remained tight due to lower inventory levels across the region. In addition, demand from downstream detergent and LABSA remained high that supported the overall price trajectory for LAB during this timeframe. In addition, the demand from the global market remained strong in the meantime, while the suppliers were anxious about unstable transportation activities, where the freight cost was shot up rapidly across prime trade route.
Asia
Asian market encountered firm demand for Linear Alkyl Benzene (LAB) during Q2 2021, backed by ample offtakes from downstream surfactant sector. In the Indian market, demand remained sturdy from downstream detergent manufacturers, under the second wave of COVID pandemic in the country. Therefore, prices of LAB accessed as USD 1952/MT during the final week of the quarter in India. In addition, IOCL and Gujarat government signed a MoU to provide infrastructure facility that includes tank truck loading facility for LAB, which is a small part of the big investment that aims to boost the production as well as transportation of several important commodities.
Europe
European manufacturers witnessed a stable demand outlook for LAB during this quarter, backed by sturdy demand from domestic and international market. Rising production cost was also marked as a major concern, which led to an effective hike in commodities prices. Meanwhile, Cepsa, a major oil and chemical giant of Spain, successfully switched the manufacturing process of LAB for environmental safety. This new process is expected to reduce the waste and water consumption during the LAB manufacturing process.
For the Quarter Ending March 2021
North America
Devastated production activities across the US Gulf coast halted the overall output of LAB across the region. Amidst freezing weather, several major refineries like ExxonMobil, Total, Shell etc. faced unplanned turnarounds that reduced the availability of all prime upstream chemicals like feedstock Benzene. USA faced critical shortage of Benzene, which affected the prices of almost all the downstream chemicals including LAB. It is estimated that more than 74% of total Benzene output was halted during this period, which made the LAB prices to shoot up during the quarter.
Asia
The Asian market observed mixed sentiments during this quarter, the demand remained firm from downstream detergent segments and varied country wise across the region. Sturdy crude oil values and lower spot availability of Benzene supported the price of LAB during this quarter. Hence prices of LAB followed an upward trend across the region. In the Indian markets, LAB value surged from USD 1383.7per MT (January 2021) to USD 1467.5 per MT (March 2021) despite stable demand fundamentals in the market.
Europe
Unlike the Asian and North American countries, Benzene prices in the European region followed a downward trajectory backed by adequate availability and feeble demand. Second wave of COVID-19 impacted the functionality of downstream industries, hence the demand for LAB remained low from downstream segments. However, high freight cost and shipping container shortage supported the export prices for the region.
Discussions in the Asian Linear Alkyl Benzene (LAB) market were mostly thin for the quarter ending September 2020. Although negligible change was observed in demand fundamentals due to the pandemic, negotiations prompted by the traders to initiate better offtakes shrouded the contract prices due. Nonetheless, the skyrocketing demand from the detergent and cleaning industry failed to provide prominent gains as manufacturers flooded the market with excess supply. However, with consistent growth in market sentiments of feedstock Benzene, the hovering outlook of LAB is anticipated to bounce back by the next quarter.
The third quarter for the LAB market in Europe remained firm with continuous demand for surface cleaning products under strict industrial practices to maintain hygiene. Consumption of LAB in the surfactants and derivatives further exacerbated with resurgence of the coronavirus contagion in several parts of the region. With no planned turnaround in the near term, market players were cautious over supply outstripping the demand that ultimately led to reduced profit margins. As there are no hopes for complete abatement of the virus till date, the demand is likely to observe no appreciable change in future.
