For the Quarter Ending June 2025
North America
• The LAB Price in the U.S. increased by 2% quarter-over-quarter in Q2 2025, contributing to a rise in the Price Index.
• Strong downstream demand from the LABSA industry, especially in detergent and cleaning product segments, supported firmer buying activity.
• Despite stable feedstock benzene costs, supply constraints driven by logistical bottlenecks and cautious inventory management created a tighter market environment.
• Export demand, particularly from Latin America, remained consistent, further straining domestic availability amid tariff-related uncertainties.
Why did the price of LAB change in July 2025 in North America?
• In July 2025, the LAB Spot Price increased due to strong seasonal demand from cleaning and detergent industries coupled with limited inventories.
• The LAB Production Cost Trend remained stable, but freight and packaging costs added upward pressure to producer margins.
• The LAB Demand Outlook remained robust, fueled by steady domestic consumption and resilient export flows.
• The LAB Price Forecast anticipates continued firmness unless supply constraints ease or demand unexpectedly softens.
APAC
• The LAB Price in South Korea decreased by 1% quarter-over-quarter in Q2 2025, leading to a marginal dip in the Price Index.
• Softer demand from downstream LABSA producers, particularly in the cleaning and detergent sectors, weighed on the market despite seasonally steady household consumption.
• Adequate domestic supply, supported by stable benzene feedstock costs and uninterrupted plant operations, helped maintain balanced inventories and consistent production.
• Export volumes remained under pressure from weaker global sentiment and tariff-related trade realignments, but stable regional flows toward Southeast Asia prevented significant imbalances.
Why did the price of LAB change in July 2025 in South Korea?
• In July 2025, the LAB Price in South Korea saw a slight decline due to subdued downstream demand and moderated industrial activity.
• The LAB Production Cost Trend remained favorable, supported by low benzene input costs and steady refinery margins.
• The LAB Demand Outlook reflected stable but cautious sentiment, with routine procurement from the cleaning sector offset by weaker industrial offtake.
• The LAB Price Forecast points to a largely stable market trajectory unless there is a marked shift in industrial recovery or export demand.
Europe
• The LAB Price in Germany increased by 12% quarter-over-quarter in Q2 2025, lifting the regional Price Index due to a combination of tight supply and firm downstream demand.
• Seasonal demand from the downstream LABSA sector, particularly in the cleaning and detergent industries, remained strong throughout the quarter, boosting LAB Demand Outlook.
• On the supply side, unplanned maintenance, port congestion, and delayed imports led to inventory tightening, while elevated freight costs and stable feedstock levels added upward pressure to the LAB Production Cost Trend.
• Despite some easing in euro area inflation, persistent structural constraints and active procurement by detergent manufacturers reinforced bullish sentiment across the region.
Why did the price of LAB change in July 2025 in Europe?
• In July 2025, the LAB Spot Price in Germany remained firm before showing signs of moderation due to weakening downstream demand and restored supply flows.
• The LAB Production Cost Trend was mixed, with easing benzene prices balancing against elevated energy and logistics expenses.
• The LAB Demand Outlook turned cautious as industrial and consumer demand for cleaning products softened amid inflationary pressures and low retail activity.
• The LAB Price Forecast for Europe suggests a potential cooling in prices if downstream consumption continues to slow and supply-side stability persists.
MEA
• The LAB Spot Price in Saudi Arabia increased quarter-over-quarter in Q2 2025, pushing the regional Price Index higher on the back of solid downstream offtake from the LABSA segment.
• Strong seasonal demand for cleaning and detergent products supported consumption, while domestic producers operated near capacity to ensure balanced inventory, despite softer feedstock benzene costs.
• The LAB Demand Outlook remained positive due to persistent hygiene-related procurement, especially post-Ramadan, and Hajj, although muted export interest and high inflation slightly curbed the pace of growth.
• The LAB Production Cost Trend remained stable, aided by favorable benzene economics and consistent output from integrated production units, keeping margins intact for regional suppliers.
Why did the price of LAB change in July 2025 in MEA?
• In July 2025, the LAB Spot Price in Saudi Arabia showed signs of softening due to a slowdown in downstream LABSA consumption post-Hajj and weaker regional industrial activity.
• The LAB Production Cost Trend continued to benefit from subdued feedstock prices, but these savings failed to offset the impact of weakening demand.
• The LAB Demand Outlook turned cautious, with FMCG and detergent manufacturers reducing procurement amidst high summer temperatures and inflation-related pressures.
• The LAB Price Forecast for MEA signals potential downward adjustments if export activity remains sluggish and regional demand fails to recover.
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.
FAQs
1. What is the current price of Linear Alkyl Benzene (LAB)?
The price of LAB varies across regions. In Q2 2025, Saudi Arabia and Germany experienced notable price increases, while South Korea observed a slight decline. Regional dynamics such as supply conditions, feedstock costs, and downstream demand continue to shape current pricing.
2. Who are the top LAB producers in the global market?
Major global LAB producers include CEPSA, Sasol, Reliance Industries, Farabi Petrochemicals, and ISU Chemical, with strong manufacturing footprints across the Middle East, Europe, Asia, and North America.
3. What are the main applications of Linear Alkyl Benzene (LAB)?
LAB is primarily used in the production of Linear Alkylbenzene Sulfonic Acid (LABSA), a key ingredient in household and industrial cleaning agents, detergents, and personal care products.
4. What is the expected price trend for LAB in Q3 2025?
The Q3 2025 outlook for LAB pricing is mixed. Prices in Europe and North America may see moderation due to easing demand and supply normalization, while MEA and APAC could witness a stable to slightly bearish trend depending on export activity and feedstock dynamics.
