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.
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.
