For the Quarter Ending March 2023
North America
The market for Linear Alkylbenzene Sulfonic Acid displayed bullish emotions in the first quarter of 2023 because of increased demand and upstream (crude oil) prices in the local market. Active buying from the LABSA sectors has resulted in favorable improvements to the dynamics of the feedstock LAB and sulphonic acid market. Additionally, the robust economic expansion increased market activity. The need for downstream industrial surfactants surged as several petrochemical refineries regained full production levels, which also contributed to the rise in LABSA demand in the US. The price of Linear Alkylbenzene Sulfonic Acid in the American market climbed towards the end of the quarter as a result of rising upstream benzene costs in the US. The rising demand in March for downstream surfactants assists the increasing cost of LABSA in the American market. Linear Alkylbenzene Sulfonic Acid FOB-Illinois (USA) were assessed at USD 3244/MT.
Asia-Pacific
In Asia, the cost of Linear Alkylbenzene Sulfonic Acid has been continuously increasing this quarter. The price of LABSA in South Korea has risen because of growing upstream LAB costs. The average supply of LABSA has been produced as a result of the market's rising upstream costs in South Korea. The region's overall demand remained high as well. Due to the rising end-user demand for downstream surfactants and detergents, there was a critical need in South Korea. The upstream laundry sector's expanding demand in China is what is causing the price of LABSA to increase there. The price of Chinese Benzene upstream increased, which increased the cost of LABSA. FOB-Qingdao (China), Linear Alkylbenzene Sulfonic Acid, USD 1550/MT.
Europe
The global market for Linear Alkylbenzene Sulfonic Acid saw negative sentiment throughout the first quarter of 2023 as a result of altering upstream (crude oil) prices. The regional market's volatile prices for crude oil contributed to a decline in product demand. Due to a combination of multiple inadequate consumer needs and falling upstream and energy prices, the German market for LABSA pricing has collapsed. Low consumer demand, an abundance of supply, and rising energy prices have combined to shrink the market for LABSA pricing in Germany. Despite the region's seasonal variations, as the product's demand shrank, the inflation rate stabilized. The estimated price for LABSA FOB Hamburg (Germany) was USD 1526/MT.
For the Quarter Ending December 2022
North America
Throughout the fourth quarter of 2022, the prices of Linear Alkylbenzene Sulfonic Acid (LABSA) decreased in the American market. The main cause of the downward price trend during the fourth quarter is the below-standard demand for upstream detergents and surfactants. Although feedstock benzene costs increased in the second part of Q4 2022 due to low demand over the holiday season and destocking activities, the price of LABSA in the American market decreased with the assistance of easing feedstock benzene costs during the first half of Q4. The cost of LABSA in the US during the end of Q4 2022 was documented as USD 3180/MT Linear Alkylbenzene Sulfonic Acid FOB-Illinois.
APAC
Around USD 1377/MT Linear Alkylbenzene Sulfonic Acid FOB-Qingdao was the price of Linear Alkylbenzene Sulfonic acid (LABSA) in the Chinese market at the end of the fourth quarter of 2022. The prices were falling throughout the entire fourth quarter of 2022, which is consistent with the downward price trend of feedstock benzene prices in the Chinese market. The fourth quarter of 2022 saw a decrease in LABSA costs due to the increased number of COVID cases and the dire economic conditions in China. Since China is one of the main exporters, LABSA prices in the Indian and South Korean markets during the fourth quarter of 2022 followed the same price trend as the Chinese market.
Europe
At the conclusion of Q4 2022, the price of Linear Alkylbenzene Sulfonic acid (LABSA) in the German market was around USD 1900/MT LABSA FOB Hamburg. Prices fell during the second half of the fourth quarter of 2022, mirroring the downward trend of feedstock benzene prices in European markets. Due to rising inflation rates in various European nations, Q4 2022 witnessed weak buying sentiments from end customers and several industries in the continent of Europe. Despite all factors leading to a decreasing price trend, during the start of Q4 2022, the prices of LABSA in Germany witnessed a hike caused by production halts in various industries and rising surfactant demand.
For the Quarter Ending September 2022
North America
Due to declining feedstock benzene costs on the domestic market, which were brought on by sluggish global benzene demand, the price of linear alkylbenzene Sulfonic acid (LABSA) in the American market fell at the beginning of the third quarter. The operation costs of LABSA were reduced, lowering the price of LABSA in the US, as a result of the decline in feedstock benzene prices at the beginning of Q3. The price of LAB in the US increased in the second half of Q3 2022 as cyclones in the yellow sea route hampered the supply of feedstock benzene from South Korea. At the end of Q3 2022, the cost of LABSA in the US was estimated to be around USD 3397/MT.
APAC
Due to weak demand for feedstock benzene in China, Linear Alkylbenzene Sulfonic Acid (LABSA) prices on the Chinese market fell at the beginning of the third quarter. Because there was virtually little demand for feedstock benzene, it was cheaper to produce LABSA in China, which resulted in lower LABSA pricing. But as demand for downstream cleaning products increased as a result of the mid-autumn holiday, the situation changed in the second half of Q3 2022. The prices of LABSA at the end of Q3 in South Korea were recorded at around USD 4267/MT, following a similar trajectory as the Chinese market.
Europe
The price decline of Linear Alkyl Benzene Sulfonic Acid (LABSA) in Europe during the first half of the third quarter of 2022 was brought on by the weakening demand for upstream Benzene in the European markets. The rise in downstream surfactant demand in the European market began to decline at the beginning of Q3, which coincided with a decline in LABSA prices in the region. Despite low upstream prices in Europe (except LAB), the rising cost of energy increased LABSA's operating expenses and caused a price increase in the second half of Q3 2022. During the final month of Q3, the price of LABSA in Europe was estimated to be around USD 1994/MT.
For the Quarter Ending June 2022
North America
Throughout the second quarter of 2022, the cost of Linear Alkyl Benzene Sulfonic Acid (LABSA) in the American market increased gradually. The end of the second quarter has traditionally been the time for annual maintenance at chemical refineries and related sectors. The local market's demand for industrial surfactants increased at the end of Q2 abetting the increase in LABSA prices in the US. The most popular industrial surfactant, linear alkyl benzene sulfonic acid (LABSA), was in great demand in the second quarter of 2022. Due to the high cost of upstream Benzene in the USA market, the LABSA price trend was rising in Q2 of 2022. The rising price trend of upstream Linear Alkyl Benzene (LAB) also aided the price hike of LABSA during Q2 2022.
APAC
Throughout the second quarter of 2022, the price of Linear Alkyl Benzene Sulfonic Acid (LABSA) increased steadily in the Indian market. The rising price trend of LABSA is primarily due to the strong demand for surfactants and laundry detergents from industries and households. The requirement for industrial surfactants peaked at the end of Q2 2022, which led to a rise in demand for LABSA. The high price of upstream Benzene increased LABSA prices in India due to the high cost of feedstock crude oil. Due to covid rules, reduced demand for LABSA in the domestic market led to the fall in the price trend in China during the month of MAY. Due to a rise in the high demand for surfactants from industries, pricing began to change the next month.
Europe
During the middle of the second quarter of 2022, the European market significantly increased prices for Linear Alkyl Benzene Sulfonic Acid (LABSA). The energy crisis on the continent, which increased the cost of producing and transporting the goods, was a major factor in the price increase. The growing cost of upstream Benzene aided the price increase of LABSA due to the high cost of feedstock on the continent due to the ongoing conflict between Russia and Ukraine. However, by the end of Q2, LABSA prices in domestic markets were artificially lowered because there were no offtakes due to the high cost.
For the Quarter Ending March 2022
North America
Prices of Linear Alkyl Benzene Sulfonic Acid rose steadily throughout the first quarter of 2022, it peaked to USD 1560/MT during the end of Q1 of 2022. Hike in prices was due to high upstream Linear Alkyl Benzene prices, which was caused by the rising geo-political in the eastern European region during January and the Russian invasion of Ukraine during February and March of 2022. The rising popularity of Linear Alkyl Benzene Sulfonic Acid as a surfactant and detergent from the end users on the account of its low environmental Impact assisted in the rise in price trend of Linear Alkyl Benzene Sulfonic Acid in the US.
Asia Pacific
Prices of Linear Alkyl Benzene Sulfonic Acid in the Chinese market witnessed consistent rise on the back of the high demand from downstream surfactant and disinfectant commodities as Covid cases in China began to peak again in January 2022. Production halts in February due to the winter Olympics and Chinese New Year abet the rising trend of Linear Alkyl Benzene Sulfonic Acid prices. Linear Alkyl Benzene Sulfonic Acid traded around USD 1534/MT in the Chinese market. The price in the Indian market rose due to high upstream Linear Alkyl Benzene and Sulphuric Acid prices.
Europe
Contrary to the trends of Linear Alkyl Benzene Sulfonic Acid in the other markets, in the European market the price of linear alkyl benzene sulfonic acid has been rising with a very low percentage difference in month-on-month basis throughout the first quarter of 2022. Europe despite being the most affected region from the invasion of Ukraine by Russia and suffered a lot of shortages of natural gas and crude oil did not see a price hike of linear alkyl benzene sulfonic acid as the Europe had strong inventory of detergent and surfactant products. USD 1780/MT is the price of linear alkyl benzene in the German market throughout Q1 of 2022.
For the Quarter Ending December 2021
North America
The LABSA market in North America stood strong throughout October and November due to price escalations in its feedstock LAB backed by bullish benzene and crude oil upstreams, which got translated into the input costs of LABSA. Low feedstock output from Ida hurricane-affected facilities in the USA and trade constraints due to crippled logistics across ports made the manufacturers struggle in fulfilling enquiries from the domestic and international buyers. The USA market took a sigh of relief from the fall in upstream prices due to gradual build-up in the inventories as the majority of the production units restarted operations causing the Linear Alkylbenzene Sulfonic Acid (LABSA) prices to fall to USD 1320/MT FOB New York during December at a rate of 4% from the record high prices in November.
Asia
Though the initial two months of the quarter recorded an overall buoyed market trait in Asia, the month-specific price trends differed country wise. The discussions for LABSA in China remained highest during October on the back of feedstock tightness and slump in production activity owing to China’s Dual Control Policy. With falling upstream futures, the prices plummeted gradually through November and December during when the prices settled at USD 1541/MT and USD 1515/MT FOB Qingdao, respectively, with demand faltering a little due to stockpiling of LABSA inventories by the downstream sectors during the initial days of December. In India, the Linear Alkylbenzene Sulfonic Acid prices peaked during November with extreme tightness in raw materials in the international market and a 60-70% rise in freight costs. Amid high demand, the traders were heard revising their offers frequently in order to improve their margins. However, the retracing upstream market from skyrocketing trends during November end, as well as the quickly-pacing stock clearing activity in the Indian market before the approaching new year caused the traders to stick to low contract prices that hovered around USD 1166/MT to USD 1381/MT in December.
Europe
Oscillating between catastrophic energy tightness and surging raw material prices, the LABSA market in Europe represented raised sentiments throughout the quarter. The Linear Alkylbenzene Sulfonic Acid prices rose incessantly with every passing week in Germany as the downstream detergent sector continued on unwavering demand fundamentals with the rise in Coronavirus cases. Constraints in spot trading in addition to high input costs also remained a point of concern for the manufacturers. Despite the slight relaxation in the container crisis, the LABSA prices in December, which hovered around USD 1725/MT FOB Hamburg, registered the highest price values propelled by the surge in downstream demand both in domestic and international markets.
For the Quarter Ending September 2021
North America
The overall market of Linear Alkylbenzene Sulfonic Acid showcased mixed sentiments across the North American region in Q3 2021. In the US, LABSA prices witnessed a slight downtrend during H1 of Q3 due to lowered prices of feedstock benzene. However, a short sharp surge was recorded during the hurricane season as the supply of Benzene was hard to find. Increased costs of transport and intermittence in power supply in and around regions of the gulf coast as well as the disruptions in the supply chain caused by tropical storm Nicholas in the state of Texas also contributed to the spike in the regional prices. Prices are however expected to stabilize in Q4 as the supply of Benzene eases up and logistical costs come down as well.
Asia
The Asian LABSA market witnessed a downward trend in the third quarter of 2021 as the prices of raw material Linear Alkyl Benzene observed a major decline during Q3 across the region. In India, LABSA prices kept on declining in August under the pressure of stabilizing feedstock prices amid stable offtakes from the domestic market. Major detergent and surfactant manufacturers revealed that they had to revise their product prices while protecting their profit margin in Q3. Producer’s margins had been significantly reduced due to consistently increasing feedstock prices coupled with soaring freight costs. The price of LABSA declined significantly and eventually settled at USD 1342/MT from USD 1758/MT in September.
Europe
The regional market demonstrated mixed trends in Q3 of 2021 across the European region. LABSA supplies remained tight during the quarter due to a restricted supply of feedstock benzene across the region. The demand for Linear Alkyl Benzene Sulfonic Acid from the downstream surfactants and detergents industry remained low due to lesser buying momentum in the end user industries. Resumption of several Benzene production units towards the end of Q3 supported the production to get back to its norm.
For the Quarter Ending June 2021
North America
During the second quarter of 2021, the North American LABSA industry improved drastically as the resumption of industrial operations after Q1 setbacks increased o availability of LABSA in the domestic market. The situation was further favoured by the continuously improving production rates at several manufacturing facilities as the supply chain recovered from the impact of winter storm Uri. Demand were consistent from the downstream surfactants industries and the offtakes from the consumer goods sector were surged. Soaring Benzene continued to send ripples to the LAB prices. As a ripple effect, the supplies of LABSA in the US domestic market took an uptrend with FOB New Jersey prices were assessed at USD 3250 per tonne in June.
Asia Pacific
In the second quarter of 2021, LABS supplies were ample in the Asia pacific region, however surging values of the key feedstock LAB provided the cost support to the LABSA prices in the Asian markets. The pricing trend was supported by the rising inflation rates on the key raw materials in China, and record breaking surged in the price of upstream Benzene remained. Due to the rising COVID cases in India, the market activities were restricted, and the bulk procurement activities were reduced in the first half. Despite hovering uncertainties, LABSA purchases from the detergent manufacturers were sufficient to keep the demand fundaments firm throughout the quarter. Due to exceptionally high-cost feedstock LAB, the prices of LABSA maintained firmness in the second quarter with Ex-Works Mumbai (India) discussions settled at USD 1724 per tonne in June.
Europe
LABSA supply conditions in the European region improved during the second quarter of 2021, owing to the improved production margins as the raw material shortages were cured as the supply chain restored with the improvement in the climate conditions. Furthermore, imported volumes from the USA increased as the industrial activities in the Gulf coast region recovered from the impact of the polar winter storm Uri. LABSA procurement was consistent throughout the European region which showcased surged demand outlook as offtakes were consistent from the surfactant industries to meet the end-user enquiries. The pricing trend stabilized in Q2 after observing an uptrend in Q1.
For the Quarter Ending March 2021
North America
LABSA supplies were tight, owned to significant halt in regional production activities amidst severe freezing conditions resulting in disrupted supply chain across the USA gulf region. The rare climatic condition forced the several upstream Benzene players to shut down the production including ExxonMobil, Total, Shell etc., causing severe shortage of raw materials during the first quarter of 2021. Demand surged due to the constant offtakes from the downstream soap and detergent industries, which led the LAB and LABSA prices to shoot-up during the quarter.
Asia-Pacific (APAC)
Asia Pacific LABSA supplies witnessed mixed sentiments during the first quarter of 2021, owing to limited spot availability of Benzene and constantly surging prices of Crude Oil across the region. Stronger upstream rates sent ripples to price of both LAB and LABSA which touched record highs during the quarter. The demand kept a firm stance as the offtakes were constant from the downstream cleaning industries and high consumer sentiments. In the Indian market, Benzene supply-demand gap significantly widened pushing CFR prices of LABSA to USD 1488 per tonne in February.
Europe
LABSA supplies were balanced to tight in the European market owned to the limited availability of Benzene. Supply constraints were witnessed as the plants operated at low production rates due to delayed transportation of key raw material and severe cold weather in the northwest European region. Demand remained stable initially in the quarter. With surging rate of COVID infections towards the end of the quarter, the demand gained pace due to its increasing end-use in detergents and other cleaners amid rising consciousness among netizens.
North America
The demand for Linear Alkylbenzene Sulfonic Acid (LABSA) in North America witnessed promising gains in the previous quarter on its increased consumption for surfactants and cleaning products under the stress of global contagion. However, with reduced panic procurement and stockpiling of the disinfectants and cleaning products, market values of LABSA have considerably stagnated. Profit intakes of manufacturers and traders were hurt on mounting inventories of downstream products following consistent operating rates. Nonetheless, LABSA market dynamics are likely to outline rapid recovery with surface chemical industry continuously innovating fresh products under optimism over increment in demand by the next quarter.
Market fundamentals of the Asian Linear Alkylbenzene Sulfonic Acid (LABSA) remained mostly flat for the quarter ending September 2020. Although minor fluctuations were witnessed in demand pattern due to the global contagion, negotiations offered by the traders to instigate improvement in offtakes eased off the contract prices. Meanwhile, budding demand from the detergent and cleaning industry failed to provide prominent gains as manufacturers filled the market with ample supply. However, with consistent growth in market values of feedstock Benzene, the lingering outlook of LABSA is anticipated to revive in the coming months.
