For the Quarter Ending March 2025
North America
In Q1 2025, the Linear Alkylbenzene Sulfonic Acid (LABSA) market in North America saw a price decline, with prices falling in January and February. The main drivers of this downturn were reduced demand from downstream industries like detergents and cleaning agents, which typically slow down after the holiday season, combined with a drop in feedstock LAB prices. Seasonal factors and cooler weather further contributed to weaker consumption, while an abundant supply in the market kept prices from rising despite soft demand.
However, in March 2025, LABSA prices began to stabilize. Demand picked up slightly, particularly from cleaning and detergent sectors, while export markets remained steady. Increased purchasing activity in anticipation of potential price hikes due to new tariffs and inflationary pressures helped balance the market. Despite these concerns, there were no significant disruptions in supply, keeping prices stable.
Overall, the LABSA market in North America saw a 12% decrease in prices in Q1 2025 compared to Q4 2024. While there was some recovery in March, challenges such as trade policy uncertainties and inflationary pressures continue to impact the market outlook, leading to cautious market behavior.
APAC
In Q1 2025, the LABSA market in the APAC region experienced a fluctuating pricing trend shaped by seasonal demand variations, steady feedstock costs, and subdued export activity. January saw a marginal decline in LABSA prices due to weak downstream consumption from the detergent and cleaning sectors, influenced by holiday slowdowns and colder weather, while stable LAB prices and ample inventories kept supply steady. February witnessed relatively unchanged pricing as the market settled into balance, with muted demand and sufficient stock levels limiting price movement. Export demand remained soft, particularly from key buyers like China, adding to the sluggish momentum. However, in March, prices began to rise due to consistent domestic consumption and tighter supply conditions. The detergent and personal care sectors maintained strong procurement, while production costs held firm, supporting price stability. Although inflationary pressures and shipping cost fluctuations added some uncertainty, the market displayed resilience, particularly towards the end of the quarter. By March 2025, LABSA prices FOB Busan rose by 0.6%, though overall Q1 2025 prices were down 2% compared to Q4 2024. Market participants remain cautiously optimistic, with price direction likely hinging on feedstock trends and the pace of downstream demand recovery.
EUROPE
In Q1 2025, the European LABSA market exhibited a gradual recovery from the sharp downturn seen in Q4 2024. January saw a marginal price decline, pressured by soft demand, lower feedstock LAB costs, and high inventory levels. Seasonal slowdowns and weak exports further limited buying activity. However, market conditions improved in February, supported by a rebound in demand for detergents and cleaning products as industrial operations picked up. Rising feedstock prices and supply constraints in parts of Europe contributed to an upward pricing trend. March sustained this momentum, with consistent downstream consumption and elevated production costs driving prices higher. Inflationary pressures and supply chain disruptions, including weather-related logistical issues, added complexity to the market. Despite stronger domestic demand, the overall price trend for the quarter still reflected a 9% decrease compared to Q4 2024. The quarter ended with a 1.8% price increase in March, following gains in February after a subdued January. Market participants remain cautious as inflation, exchange rate volatility, and uneven demand recovery across Europe continue to influence purchasing decisions and pricing stability heading into Q2.
MEA
In Q1 2025, the LABSA market in the Middle East and Africa (MEA) displayed mixed performance, driven by shifting demand patterns and feedstock cost fluctuations. January saw a marginal decline in prices due to lower Linear Alkylbenzene (LAB) costs and ample supply, with post-holiday slowdowns and subdued export activity adding to the downward pressure. However, domestic demand from detergents and cleaning agents remained steady. In February, prices rose as overseas demand improved and rising LAB costs pushed production expenses higher. Strong export momentum and stable consumption supported this uptrend. March continued this pattern, with export interest remaining firm and domestic procurement consistent, despite inflationary pressures driven by increased housing, food, and utility costs. Although rising inflation threatened input cost stability, demand fundamentals in both domestic and international markets helped maintain a balanced outlook. Overall, LABSA prices in the MEA region fell by 5% compared to Q4 2024. Yet, by March 2025, Spot Ex-Jeddah prices increased 0.6% from February, highlighting a modest but steady recovery in the regional LABSA market, supported by stable supply and gradually improving demand.
For the Quarter Ending December 2024
North America
In Q4 2024, the North American Linear Alkylbenzene Sulfonic Acid (LABSA) market experienced a downward pricing trend, reflecting a 10% decrease compared to Q3. Prices remained relatively stable at the start of the quarter, supported by a balanced supply-demand situation and steady feedstock costs. However, demand from downstream sectors, particularly detergents and cleaning products, remained weak due to seasonal slowdowns and reduced consumer spending during the holiday season.
Additionally, logistical challenges, including labor strikes and port congestion, added to supply chain pressures but did not disrupt overall supply levels. Despite easing freight rates and a moderate recovery in crude oil prices, these factors were insufficient to stimulate significant demand growth. The overall market sentiment remained cautious, with weak domestic demand compounded by subdued export opportunities. Manufacturing conditions showed signs of stabilization, with a slowdown in new orders and production, contributing to the general pricing moderation.
By the end of the quarter, the price for LABSA FOB Illinois stood at USD 1983/MT, marking a decrease from the previous quarter. The ongoing trade uncertainties and seasonal demand fluctuations continued to challenge market participants, leaving limited prospects for recovery in the near term.
APAC
In Q4 2024, the Linear Alkylbenzene Sulfonic Acid (LABSA) market in the APAC region displayed a mixed trend. Prices initially rose in October, driven by stable demand and firm feedstock costs, but declined in the following months due to seasonal factors and weak downstream consumption. In early November, the LABSA market remained stable, with balanced supply-demand conditions and steady production, despite moderate-to-low demand from the detergent sector. Seasonal slowdowns and weak consumer sentiment, exacerbated by the year-end holidays, tempered market activity. Supply remained sufficient, with stable feedstock prices and steady inventories, despite some logistical challenges, such as rising shipping costs and concerns over regional trade disruptions. By the end of November, demand remained subdued, and prices faced downward pressure. In December, pricing remained under strain due to low downstream demand and excess inventory, though mild recovery was expected as the winter season progressed. By the end of the quarter, LABSA prices FOB Busan stood at USD 1410/MT, reflecting a 3% increase compared to Q3 2024. Despite occasional supply disruptions, the market remained relatively stable, with recovery prospects closely tied to the pace of downstream demand recovery and broader regional economic conditions.
Europe
In Q4 2024, the European Linear Alkylbenzene Sulfonic Acid (LABSA) market faced an 11% decrease in prices, primarily driven by weak demand and ongoing economic challenges. The market remained subdued, with moderate demand from downstream sectors such as detergents and industrial cleaners, influenced by seasonal factors like reduced consumption following peak demand months. Despite logistical disruptions, including port congestion at Hamburg, the market saw sufficient supply due to steady domestic production and adequate inventory. Weak industrial activity, reflected in Germany’s contracting manufacturing sector, contributed to the overall demand stagnation. Additionally, geopolitical tensions and inflationary pressures further dampened market sentiment. Throughout the quarter, prices saw a consistent downward trend, with the LABSA FOB Hamburg price ending at USD 1310/MT. These developments underline the challenges faced by market participants, like weak economic indicators, reduced demand, and logistical disruptions combined to suppress price growth. With limited signs of recovery, the LABSA market is likely to experience further pressure in the near term, as supply and demand conditions remain imbalanced amid broader regional uncertainties.
MEA
In Q4 2024, the Linear Alkylbenzene Sulfonic Acid (LABSA) market in the Middle East and Africa (MEA) region experienced a notable decline in prices, reflecting a 10% decrease compared to Q3. This downward trend was influenced by several factors, including weak demand from downstream sectors such as detergents and cleaning agents, which typically slow down toward the year's end. The market also faced an oversupply situation, with stable feedstock prices for LAB and sluggish demand from key international markets like Asia and Europe. Seasonal factors further exacerbated the situation, as production rates reduced in anticipation of the holiday season, resulting in lower consumption of LABSA. Despite the challenges, Saudi Arabia's market remained relatively stable, with prices ending the quarter at USD 1296/MT for Spot EX-Jeddah. Additionally, moderate supply levels and consistent domestic demand for LABSA helped maintain stability, despite logistical issues and rising freight rates. The market participants are adjusting to a cautious outlook, expecting stable but weak demand in the coming months. The decrease in prices highlights the ongoing struggles for producers, facing a tough environment amid low consumption and supply-side pressures.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American market for Linear Alkylbenzene Sulfonic Acid (LABSA) experienced a notable decline in prices, with the USA witnessing the most significant fluctuations. Several key factors contributed to this downward trend, significantly shaping market dynamics. Primarily, subdued demand from downstream industries, particularly within the detergents and cleaning sectors, played a crucial role in pushing prices lower. As consumer interest waned, manufacturers found themselves with excess inventory, further exacerbating the pricing pressures. Additionally, easing feedstock LAB costs helped to reduce production expenses, but this also led to a more competitive market environment where prices continued to decline.
The market faced additional challenges due to disruptions in the supply chain, including delays related to hurricanes and port congestion, which complicated logistics and distribution networks. These operational hurdles hindered the ability of suppliers to respond effectively to market demand, leading to an overall negative sentiment in the industry.
When compared to the same quarter the previous year, LABSA prices indicated a substantial decline, reflecting a significant shift in market conditions. By the end of the quarter, prices for LABSA in the USA decreased by 1.8%, underscoring the ongoing negative pricing environment marked by persistent declines and various challenges within the market.
APAC
In Q3 2024, the Linear Alkylbenzene Sulfonic Acid (LABSA) market in the APAC region exhibited a mixed trend, characterized by a price decline in the initial two months, followed by a surge in the final month of the quarter. This fluctuation reflects a challenging market environment shaped by various factors. The initial price drop can be attributed to subdued demand from downstream industries, particularly in the detergent and cleansing agents’ sectors, coupled with an oversupply in the global market. Despite these challenges, a rebound in prices was observed towards the end of the quarter, driven by improved demand in anticipation of the festive season in major Asian markets, such as China and India. Further complicating the situation, supply disruptions, including port congestion, also impacted product availability, influencing price trajectories throughout the quarter. The overall decrease compared to the same quarter last year was intensified by a drop from the previous quarter in 2024, reflecting a persistent bearish sentiment in the market. Key factors contributing to this depreciation included global oversupply, reduced downstream demand, and fluctuations in feedstock LAB prices. In South Korea, the market saw the most significant price changes, with LABSA FOB Busan prices easing by 0.9% and 1.4% in July and August, respectively, before rebounding by 3% by the end of September. Overall, the pricing environment for LABSA in Q3 2024 was predominantly negative, highlighting the challenges in supply-demand dynamics and external market conditions that continue to affect the industry.
Europe
In Q3 2024, the European Linear Alkylbenzene Sulfonic Acid (LABSA) market experienced a notable downward pricing trend, marked by a 5% decline compared to the same quarter last year. This decrease can be attributed to several interrelated factors affecting the market dynamics. Primarily, weak demand across the region exerted significant downward pressure on prices. The sluggish demand from the downstream surfactant industry was a critical factor, limiting the consumption of LABSA despite ongoing supply constraints. Additionally, a reduction in upstream Benzene costs and feedstock LAB prices further contributed to the negative pricing trajectory. Germany observed the most pronounced price changes, reflecting both seasonality and a correlation with broader market trends. The price movements in the country illustrated how external factors, such as economic conditions and demand fluctuations, directly impacted LABSA pricing. By the end of the quarter, the price for LABSA FOB Hamburg registered a decrease of 5.3%, reinforcing the prevailing bearish sentiment in the pricing environment. This consistent downward trend highlights the challenges faced by the European LABSA market, driven by subdued demand and fluctuating feedstock costs.
MEA
In Q3 2024, the Linear Alkylbenzene Sulfonic Acid (LABSA) market in the Middle East and Africa (MEA) region experienced a consistent decline in prices, indicative of a negative pricing environment. This downward trend can be attributed to several significant factors influencing market dynamics. A notable decline in demand from downstream industries, particularly within the surfactant sector, played a crucial role in driving LABSA prices lower. Additionally, decrease in feedstock LAB prices, combined with a sufficient supply of LABSA, further exerted downward pressure on pricing, making it difficult for producers to justify higher price levels. Moreover, logistical challenges, including delays in vessel arrivals from Asia due to geopolitical tensions, limited the availability of the product. In Saudi Arabia, the LABSA market experienced the most pronounced price changes in the region, mirroring the overall downward trajectory. By the end of the quarter, LABSA prices reflected a decrease of 2.2% Spot EX-Jeddah, indicating a sustained decline compared to the same period last year. This consistent downward trend underscores the challenges faced by the MEA LABSA market amid weakening demand and stable supply dynamics.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American market for Linear Alkylbenzene Sulfonic Acid (LABSA) experienced a steady decline in prices, driven by several key factors. A significant drop in feedstock costs, particularly for Linear Alkylbenzene (LAB), led to reduced production expenses and, consequently, lower LABSA prices.
Additionally, increased supply volumes, boosted by improved weather conditions in major production areas, resulted in higher inventory levels, further exerting downward pressure on prices. Logistical challenges, including disruptions in major transportation routes, also impacted the market by affecting export activities and causing product accumulation at ports.
In the USA, the most notable price fluctuations occurred this quarter, with a consistent negative trend reflected in a 22% year-on-year decrease and a 3% decline from the previous quarter. The price comparison between the first and second half of the quarter showed a 3% drop, with the latest quarter-ending price settling at USD 2250/MT DEL Houston. This decline underscores a bearish market sentiment influenced by lower production costs, ample supply, and logistical issues.
APAC
In Q2 2024, the Linear Alkylbenzene Sulfonic Acid (LABSA) market in the Asia-Pacific (APAC) region experienced a significant decline in prices due to multiple factors. A key driver of this downward trend was a 1.4% decrease in the cost of feedstock Linear Alkylbenzene (LAB). Domestic demand for LABSA in the region remained average, contributing to the overall bearish sentiment. Rising freight rates across Asia further impacted prices, as the increased shipping costs exacerbated the decline. South Korea saw notable price drops, with a 2% decrease compared to the same quarter last year and a 2% reduction from the previous quarter. Seasonal expectations for higher summer demand did not materialize, leading to excess supply and reinforcing the price drop. Additionally, high port inventories contributed to the bearish conditions in the LABSA market. By the end of Q2 2024, LABSA prices in South Korea were USD 3811/MT (Retail) Ex-Gyeongju, reflecting the ongoing negative market conditions influenced by lower feedstock costs, subdued demand, and high freight rates.
Europe
In Q2 2024, the European Linear Alkylbenzene Sulfonic Acid (LABSA) market saw a notable price increase due to several key factors. Rising costs for feedstocks, such as Linear Alkylbenzene (LAB) and Benzene, led to higher production expenses, which were reflected in LABSA prices. Additionally, global freight rate hikes and supply chain disruptions intensified the pricing pressures, particularly impacting European supply chains. Strong seasonal demand from the detergent and surfactant sectors, driven by elevated temperatures and increased outdoor activities, further boosted LABSA consumption and market sentiment in the Europe. Germany experienced the most significant price fluctuations, with LABSA prices climbing steadily in line with the broader European trend. Prices in Germany surged 23% compared to the same quarter last year and rose 8% from the previous quarter. By the end of Q2 2024, LABSA prices FOB Hamburg reached USD 1598/MT, highlighting a strong and consistent upward trend influenced by high production costs, increased freight rate, robust demand, and ongoing supply challenges.
MEA
In the second quarter of 2024, Linear Alkylbenzene Sulfonic Acid (LABSA) prices in the MEA region remained stable due to a balanced supply and demand scenario. The consistency in feedstock prices for Linear Alkylbenzene (LAB) contributed to stable production costs, while moderate demand from the downstream surfactant industry prevented major market disruptions. Rising temperatures in the Middle East and Europe also boosted demand for cleaning products, supporting the stable price trend. Despite increased freight rates across Asia and the Middle East, which impacted overseas demand, regional supply remained robust, avoiding significant price fluctuations. In Saudi Arabia, LABSA prices showed stability, reflecting a balanced supply-demand situation and unchanged feedstock costs. Seasonality played a role, with warmer weather driving LABSA consumption for surfactant production. Compared to the same quarter last year, LABSA prices in Saudi Arabia saw a slight 1% decline, but increased by 1% from the previous quarter, indicating a stable yet upward trend. By the end of the quarter, LABSA was priced at USD 1535/MT for Spot EX-Jeddah, highlighting a generally stable market environment.
