LAB and LABSA Prices Fall in Asian and US Markets Amid the Dampened Demand

In the recent week of May 2023, a declining trend was observed in the FOB prices of Linear Alkyl Benzene (LAB) and Linear Alkyl Benzene Sulfonic Acid (LABSA) in the Asian and US market. The suppliers were eager to attain increased values to sustain a viable profit margin in the market with decreasing demand. Moreover, the geopolitical tension between China and US and the ongoing Russia-Ukraine war have contributed to the weak sentiments in the Asian and US markets.

The FOB prices of LAB and LABSA in China dropped by 3% and 4%, respectively. Moreover, the price trend in the US market was also seen downward as the FOB prices dropped to USD 2200/MT and USD 3244/MT for LAB and LABSA, respectively. The overall decrease in the US market was about 2% for LAB and 1% for LABSA.

The weak economic outlooks have dampened the demand for downstream surfactants in the Chinese market owing to the geopolitical tension in the country. In the past weeks, sellers attempted to raise prices, but they acknowledged that demand remained low for LAB and LABSA as buyers hesitated to show increased interest in purchasing.

The imports in India have dwindled as the Bureau of Industry Standards (BIS) has given certification for imports only to a few producers. However, the buying momentum in the domestic market continued to be sluggish, but overall stability was maintained.

Consumers’ confidence has been undermined, and trade has been hindered due to inflationary forces, an impending worldwide economic downturn, and the banking sector turmoil in the US. 

As per ChemAnalyst, the prices of LAB and LABSA might show an upward trend in the second quarter of 2023 in the Asian and US markets. The forecasted increase in prices of upstream Benzene may also contribute to a surge in the prices of LAB and LABSA. Additionally, the increase in demand for eco-friendly and efficient downstream surfactants in the global market could lead to increased prices of LAB and LABSA.