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Chinese LABSA Market Improves in March 2024, While Global Prices are yet to move
Chinese LABSA Market Improves in March 2024, While Global Prices are yet to move

Chinese LABSA Market Improves in March 2024, While Global Prices are yet to move

  • 04-Apr-2024 5:38 PM
  • Journalist: Harold Finch

Throughout the closing week of March 2024, the LABSA (Linear Alkyl Benzene Sulfonic Acid) market in the USA has demonstrated remarkable stability, a trend chiefly influenced by the harmonious interplay between demand and supply dynamics. This equilibrium has effectively maintained price stability within the market for the LABSA. Furthermore, the stability in the price of feedstock LAB (Linear Alkyl Benzene) has also contributed to the overall consistency in pricing for the product. Although there was a slight uptick in the price of upstream Benzene during this period, it was offset by other factors, resulting in nearly stable production costs.

In the Saudi Arabian market, the price of LABSA remained steady this week, attributed to a well-balanced equilibrium between demand and supply. Additionally, the price of the feedstock LAB remained unchanged, reinforcing the overall stability of the product's pricing trend. Both domestic demand and supply for the product were observed to be at moderate levels, leading to an average price of LABSA in Saudi Arabia for the current week holding firm at USD 1530/MT.

Despite the stability in feedstock LAB prices, the price of LABSA experienced an increase in the Chinese market. This surge can be attributed to heightened demand from the end-use surfactant industry, particularly with the arrival of the summer season. Anticipating this seasonal uptick in demand, traders began stocking material, further bolstering the market. However, the sudden rise in demand outpaced the available supply, resulting in a bullish market scenario. Despite average supply levels, the demand-supply imbalance drove prices upwards, with the average price of Linear Alkylbenzene Sulfonic Acid in China for the current week standing at USD 1450/MT.

Similarly, despite the stability in feedstock LAB prices, the price of LABSA experienced an increase in the Indian market. This rise is primarily attributable to heightened demand from the end-use surfactant industry, particularly with the onset of the summer season. Anticipating this seasonal surge in demand, traders began stocking material, further reinforcing the market. However, the sudden rise in demand outpaced the available supply, resulting in a bullish market scenario. Despite an average supply of the LABSA within the country, the demand-supply imbalance drove prices upwards. Consequently, the average price of LABSA in India for the current week stands at USD 1555/MT, underscoring the significant impact of demand dynamics on market prices, particularly in industries sensitive to seasonal fluctuations.

According to ChemAnalyst, the price of LABSA is anticipated to see an upward trend in April 2024. This surge is expected to be fuelled by the rising value of feedstock LAB and upstream Benzene, both crucial components in the production of LABSA. Additionally, the impending arrival of the summer season is projected to contribute to a rebound in LABSA demand, potentially influencing its pricing dynamics throughout April.

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