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.
For the Quarter Ending March 2024
North America
In Q1 2024, the North American market for Linear Alkylbenzene Sulfonic Acid (LABSA) experienced a downward trend in prices. Several factors contributed to this decrease in market prices.
Firstly, there was a decrease in demand from the downstream surfactant industry, which had a direct impact on the pricing dynamics of LABSA. Additionally, global economic uncertainties and geopolitical tensions influenced market sentiment and led to a decline in prices. The USA, in particular, witnessed significant price changes during this period. The overall trend for LABSA prices in the country remained negative, with a recorded decrease of 5% from the previous quarter in 2024.
This downward trend can be attributed to reduced demand and increased market uncertainties. Seasonality also played a role in the price changes, as the first half of the quarter saw similar pricing levels compared to the second half. This stability in prices reflected the overall market sentiment and the balanced dynamics between supply and demand. At the end of the quarter, the price of LABSA in the USA was recorded at USD 2345/MT of Linear Alkylbenzene Sulfonic Acid DEL Houston. This price represented the final reflection of the decreasing sentiment in the pricing environment.
APAC
During Q1 2024, the pricing environment for Linear Alkylbenzene Sulfonic Acid (LABSA) in the APAC region has been relatively stable, with some notable changes observed in specific countries. In South Korea, the market experienced a significant decline in LABSA prices, with a decrease of 2.5% compared to the previous month. This decline can be attributed to subdued demand from the downstream surfactant industry and a decrease in the cost of feedstock Benzene. The ample supply of LABSA in the domestic market also contributed to the decrease in prices. Overall, LABSA prices in the APAC region have been influenced by factors such as feedstock costs, demand from the downstream surfactant industry, and supply dynamics. The pricing environment has been relatively stable, with minor fluctuations observed in certain countries. In terms of seasonality, the LABSA market has been impacted by off-season winter demand, which has led to decreased sales of soap and detergent products. This has resulted in a decline in LABSA prices during this period. Looking at the price changes from the previous quarter, LABSA prices recorded a decrease of 2.5% in South Korea. However, a price comparison between the first and second half of the quarter was not available. As of the end of the quarter, the price of LABSA (Retail) Ex-Gyeongju in South Korea was USD 3892/MT.
Europe
In Q1 2024, Linear Alkylbenzene Sulfonic Acid (LABSA) prices in the European region experienced significant fluctuations, driven by various factors. The market witnessed a bullish trend, with prices showing an overall increase compared to the previous quarter. This rise can be attributed to the upward movement in feedstock LAB and upstream Benzene prices, which elevated the production cost of LABSA. Supply constraints played a crucial role in shaping the pricing environment. The region faced challenges due to limited availability of raw materials and finished products, primarily stemming from disruptions in the supply chain. The ongoing Red Sea crisis further exacerbated these issues, leading to higher freight rates and supply disruptions. Although the situation gradually improved, freight rates remained above the threshold limit throughout the quarter, directly impacting LABSA prices. Demand for LABSA in the European market remained moderate, driven primarily by the downstream surfactant industry. The recent low temperatures in the region contributed to stable demand, typical of the off-season winter period. However, sluggish economic conditions and weak domestic market demand restrained the overall demand growth. Germany, in particular, witnessed the maximum price changes in the region. The country's LABSA prices showed an upward trajectory throughout the quarter, influenced by the same factors mentioned earlier. The market contended with supply shortages, primarily due to disruptions in the Red Sea and force majeure declarations by major surfactant producers.
MEA
The first quarter of 2024 has been characterized by increasing prices for Linear Alkylbenzene Sulfonic Acid (LABSA) in the Middle East and Africa (MEA) region. Several factors have influenced market prices during this period. One significant factor is the rise in feedstock prices, particularly for Benzene, which has led to higher production costs for LABSA. Additionally, supply chain disruptions, such as the recent attacks on commercial ships in the Red Sea, have resulted in increased freight rates, further impacting the pricing environment. In Saudi Arabia, which has seen the maximum price changes in the MEA region, the overall trend has been positive. Despite the challenges posed by feedstock price increases and supply chain disruptions, the market has remained resilient. The pricing environment has been stable, with a slight increase of 1% from the previous quarter and a decrease of 3% compared to the same quarter last year. Within the first quarter of 2024, there has been no significant price change between the first and second half of the quarter, indicating a consistent pricing trend. The latest quarter-ending price for LABSA in Saudi Arabia is USD 1530/MT.
For the Quarter Ending December 2023
North America
The North American Linear Alkylbenzene Sulfonic Acid (LABSA) market exhibited a stable trend throughout Q4 2023, characterized by a balance in supply and demand dynamics.
Despite the overall stability, the market faced challenges stemming from weakened demand in downstream surfactant industries and an anticipated depreciation in feedstock Benzene prices, potentially influencing the trajectory of LABSA prices. Notably, no plant shutdowns were reported during this period, contributing to the overall stability of the market. In the USA, LABSA prices remained steady, with minimal changes in the price percentage from the previous quarter and a modest 1.2% increase from October to December 2023. This pricing trend was largely influenced by the equilibrium in supply and demand, with the high value of Crude Oil providing support to prices.
The expected decline in feedstock Benzene prices in the USA has the potential to mitigate costs associated with LABSA production in the region. However, the challenging global economic landscape introduces an element of uncertainty, possibly leading to a bearish trend. The latest recorded price for LABSA in the North American region stood at USD 2459 per metric ton of Linear Alkylbenzene Sulfonic Acid DEL Houston in the USA during Q4 2023. In summary, the stable supply and demand dynamics, coupled with the influence of feedstock Benzene and Crude Oil prices, emerged as the central factors shaping the North American LABSA market during the fourth quarter of 2023.
Europe
The European market for Linear Alkylbenzene Sulfonic Acid (LABSA) confronted significant challenges during the fourth quarter of 2023. Notably, the market experienced a notable decrease in prices, with Germany emerging as the most affected country. Several factors contributed to this downturn, with the sluggish demand from the downstream surfactant industry, a global economic slowdown, and a decline in consumer spending being the top three influencers. The domestic market faced an unhealthy demand situation during the winter season, leading to a decline in LABSA prices. Adding to the complexities, Germany grappled with an energy crisis stemming from reduced natural gas supplies from Russia, further impacting the market dynamics. It is noteworthy that no plant shutdowns were reported during this quarter, indicating a resilience in production despite the challenging conditions. The price trend in Germany exhibited a notable decrease, registering a 6% decline from the previous quarter and a significant 32% drop compared to the same quarter of the previous year. As the quarter concluded, the price for LABSA in Germany stood at USD 1370 per metric ton FOB Hamburg. In summary, the LABSA market in Europe encountered formidable challenges during the fourth quarter, driven by weak demand, an economic slowdown, and supply disruptions, collectively contributing to a decline in prices.
APAC
The fourth quarter of 2023 witnessed a bearish market scenario for Linear Alkylbenzene Sulfonic Acid (LABSA) in the Asia-Pacific (APAC) region. This trend was primarily attributed to a slight operational adjustment triggered by the decline in international Crude Oil prices, diminishing support for the product on the cost side, and unexpected increases in US Crude Oil inventories. Concerns about demand in the Asian region further fuelled a decline in Crude Oil prices, offering only limited support to the LABSA market. Notably, there were no reported plant shutdowns during this period. Among the countries in the APAC region, South Korea emerged as a focal point with significant changes in LABSA prices. The market situation in South Korea was characterized by a bullish trend, driven by low supply levels. An anticipated depreciation in feedstock Benzene prices was expected to exert an impact on the price trajectory. While there was no significant change in LABSA prices compared to the same quarter of the previous year, a 1% increase was observed from the preceding quarter of 2023. In conclusion, the closing price of LABSA in South Korea for the latest quarter was reported at USD 4026 per metric ton (Retail) Ex-Gyeongju. The bearish market conditions, combined with low supply levels, contributed to the observed price dynamics in the APAC region during the fourth quarter of 2023.
MEA
During the fourth quarter of 2023, the Linear Alkylbenzene Sulfonic Acid (LABSA) market in the Middle East and Africa (MEA) region exhibited stability. The market's equilibrium was influenced by three primary factors: a surplus of available supply, subdued demand from the domestic market, and declining prices of the feedstock Benzene. The consistent demand from downstream sectors further contributed to the overall stability of the market. In Saudi Arabia, LABSA prices experienced a 1% drop compared to the previous quarter, primarily driven by the decrease in feedstock Benzene prices. Notably, the price trend in Saudi Arabia indicated a bullish market situation, characterized by moderate supply and high demand, resulting in marginal price increases. The percentage comparison between the first and second halves of the quarter in Saudi Arabia remained at 1%. Interestingly, the price in the same quarter of the previous year remained unchanged, while the percentage change from the current quarter to the previous quarter was -1%. The closing price for LABSA in Saudi Arabia at the end of the quarter stood at USD 1505 per metric ton Spot EX-Jeddah. The overall stability in prices can be attributed to the sustained demand from downstream sectors and the absence of significant market fluctuations, prompting traders to maintain price levels consistently throughout the quarter.
For the Quarter Ending September 2023
North America
In the North American region, the cost of Linear Alkylbenzene Sulfonic Acid (LABSA) saw a recovery during the quarter ending September 2023 amidst a gradual uptick in the downstream industry demand and increased export orders. Initially, at the start of the quarter, LABSA prices were adversely impacted by high inflation, leading to reduced consumer confidence and tighter financial conditions that caused consumers to curtail their spending in the downstream market. Conversely, the LABSA prices in the American market were influenced by elevated global crude oil prices, particularly in September 2023. Notably, there was a significant upswing in LABSA prices due to heightened demand from export markets and the continued high values of global crude oil in the second half of the quarter. The cost of the raw material, benzene, also remained elevated, steadily increasing for the time being, thereby raising production costs for the commodity. Meanwhile, the regional surfactant market in the country maintained a moderate performance, with the inquiries showing a slight increase toward the end of the quarter for LABSA.
Asia
In the Asia-Pacific region, the prices of Linear Alkylbenzene Sulfonic Acid (LABSA) exhibited a consistent upward trend during the third quarter of 2023. This LABSA price increase was primarily governed by positive fluctuations in international offers and a gradual rise in demand within the surfactant industry. Notably, in September 2023, the South Korean market observed a slight uptick in LABSA prices due to the limited availability of inventories in the market, although there were improvements in the shipping situation. Moreover, The rise in the LABSA prices in South Korea was primarily fueled by the growing demand from the downstream surfactant industries, both domestically and globally. Additionally, the Asian LABSA market saw an escalation in the first half of the quarter, driven by heightened import demand. The price of the raw material, Benzene, experienced an increase, primarily due to rising upstream costs of Naphtha and Crude oil towards the end of the third quarter. These factors collectively impacted the overall production costs of LABSA, contributing to the price hike in the quarter ending September 2023 in the Asia-Pacific region.
Europe
In the third quarter of 2023, the European Linear Alkylbenzene Sulfonic Acid (LABSA) market experienced a significant price increase, primarily driven by increased demand from the downstream surfactant segment and rising feedstock Benzene prices. Furthermore, higher costs of upstream Naphtha and Crude oil have substantially impacted LABSA production expenses, reinforcing the upward price trend for the third quarter. From the demand perspective, the new orders from the surfactant industry in the region remained relatively stable throughout the quarter. The persistent inflation and high-interest rates in Europe caused delays in production run rates, leading manufacturers to adjust commodity prices to maintain profitability in the regional market. Additionally, LABSA supply from European countries like the Netherlands and Belgium faced constraints, affecting the product's pricing dynamics in the H2 of the quarter as well. Eurostat data indicated a decline in European industrial activities in the previous month, with Industrial Production in the Euro Area experiencing a -1.1% change in August 2023 compared to the previous month, and this trend continued into September in the same quarter.
Middle East Asia
During the third quarter of 2023, the Linear Alkylbenzene Sulfonic Acid (LABSA) market experienced a price Decline in the MEA region, driven by stabilized global demand from the downstream industries. This price decrease was further influenced by the surged inventory levels despite the hike in the costs of feedstock Benzene, thereby leading to the lower prices of the commodity in the first half of the quarter. The demand for LABSA from the regional market remained modest in the H2 of the quarter in the MEA. Moreover, Saudi Arabia's non-oil economy saw significant growth in September, driven by increased output and a surge in new orders. This boost in business activity positively impacted the country's economic landscape and subsequently influenced consumer spending in the LABSA market marginally. In the latter part of the quarter, LABSA prices rose due to the unchanged demand from the regional surfactant sector, coupled with limited supplies. Additionally, steady export demand for LABSA in Asian nations, particularly India, played a significant role in maintaining resilience in the LABSA prices in the MEA region in the terminating month of the third quarter amidst rising production costs.
For the Quarter Ending June 2023
North America
Linear Alkyl Benzene Sulfonic Acid (LABSA) market in the US witnessed mixed sentiments in the Q2 of this year, 2023. The price of LABSA surged in April but fell in the month of May and June in the US market. The fluctuations were on account of demand from the downstream surfactant industry. The US banking crisis and increased interest rates, with the fear of recession in the US, have caused purchasing activities to slow down. Further, the lackluster demand, along with a surplus supply of the product, has impacted the prices of the LABSA. The price of LABSA FOB Illinois (USA) in the quarter was reported as USD 3258/MT in April, USD 3230/MT in May, and USD 3059/MT in June. The upstream Benzene has also shown a similar price trend, rising in April but weakening by the end of the quarter. The declining manufacturing index in the US has also contributed to the weaker market outlook. As per ISM data, the manufacturing PMI index has been decreasing as it was 47.1 in April, 46.9 in May, and 46 in June, indicating a contraction in the manufacturing sector in the US.
APAC
During the second quarter, the market showed mixed sentiments for LABSA in the APAC region. The price of LABSA rose in April but kept declining for the rest of the quarter in South Korea. However, in the Indian and Chinese markets, prices fell in April and June but declined in May. The primary reason for the decline in the APAC region is the weaker procurement activities in the Chinese and Indian markets, along with ample product availability. The Chinese economy’s deceleration and reduced market confidence have resulted in a decline in the prices across the Asia Pacific region for LABSA, which is a significant import for the Chinese market. The price of LABSA FOB Busan in South Korea was quoted as USD 1610/MT in April, USD 1513/MT in May, and USD 1460/MT in June. The upstream Benzene has also followed a similar trend and supported the price movement of LABSA as the Benzene prices increased by 1% in April but fell by 6% and 4% in May and June this year.
Europe
In the Q2 of this year, 2023, the prices of LABSA in Europe surged in the first month but declined by the end of the quarter. In the month of April, the demand was adequate from the downstream surfactant industry; however, due to subdued demand and ample availability of the product, the price fell for the next two months. Further, the market dynamics and conditions were impacted on account of recession and geopolitical tensions due to the Russia-Ukraine war. The global economic slowdown and market uncertainties have caused market participants to show a cautious approach toward making fresh purchases. Also, the increased inventories have led the sellers to offer discounts leading to reduced costs. The upstream Benzene has also shown a similar price trajectory as it rose in April but declined in May and June, influencing the LABSA prices. The LABSA FOB Hamburg prices in Germany were USD 1547/MT in April, USD 1408/MT in May, and USD 1366/MT in June. Moreover, 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
The Middle East Asian region has seen fluctuations in the price of LABSA in the second quarter of the year. However, the prices have shown an upward trend in the starting two months of the quarter but declined by the end of the quarter in June on account of reduced demand. The fluctuation in LABSA prices was seen due to changing prices of upstream Benzene as a similar trend in prices was followed. The increase in price was seen due to raised demand for LABSA from the downstream surfactant industry in the domestic market of Saudi Arabia. Also, the raised prices of Crude oil have strengthened LABSA prices. The decline in June was seen as the Crude Oil and Benzene prices eased, and the demand was subdued along with a surplus supply of the product. The price for LABSA FOB Jeddah in Saudi Arabia was USD 1593/MT in April, USD 1634/MT in May, and USD 1577/MT in June. The price rose by 1% and 3% in April and May, respectively, while product prices declined by 3% in June 2023.
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.
For the Quarter Ending September 2020
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.
Asia
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.
