In September 2025, a clear split in competition formed in the LAO (Linear Alpha Olefins) market between South Korea and the USA, with South Korea gaining strength and the USA losing strength during this same period of time. South Korea's LAO market supported by rising ethylene prices, tightness in feedstock supply and increasing export demand to key Asian destinations including China, India and Thailand. Overall strong downstream performance including LAB, LABSA and surfactants was, in part, driven by solid economic conditions in the region. There was a slight delay to crews due to Port congestion in Busan; however, sentiment in the South Korean market is optimistic, expecting weakening to short term, but recovery at the beginning of 2026. The USA's LAO market, or at least the USA short line LAO market, weakened on the back of falling ethylene values, weak downstream demand, and lackluster export flows to major destinations. Further, logistical and transport congestion and delays at the port of Houston disheartened market participants. This regional divergence is indicative of the fact that feedstock trends and trade are paving different paths for the future of global LAO flows, where Asia was developed predominately from an expanding downstream base and Western markets remain nostalgic of being 'more economic' versus 'culturally equitable'.
