Linear Alkyl Benzene (LAB) Price Trend and Forecast - ChemAnalyst
by Chem Analyst Chemical Database PriceThe cost of Linear Alkyl Benzene
(LAB) price underwent a gradual recovery in the North American region during
the quarter ending in September 2023. Contributing factors to this positive
trend included a slow but steady increase in the downstream sector and a rise
in export orders. At the onset of the quarter, high inflation dampened consumer
sentiments, leading to tightened financial conditions and a reduction in
consumer spending in the downstream market. In contrast, the LAB prices in the
American market were influenced by high global crude oil values, particularly
evident in September 2023. A substantial increase in LAB prices was noted,
driven by heightened export inquiries and the elevated global crude oil value.
The prices of the raw material benzene remained elevated, continuously rising
throughout the latter half of the quarter, thereby increasing production costs
for the commodity. Meanwhile, the country's downstream surfactant market
maintained a moderate pace, with domestic inquiries showing a slight increase
towards the end of the quarter. Consequently, buoyed by these market dynamics,
LAB prices effectively rose in September, subsequently impacting the prices of
downstream derivatives like LABSA.
During the quarter ending in
September 2023, the European market experienced a significant uptick in the
price of Linear Alkyl Benzene (LAB), primarily propelled by heightened demand
and an increase in feedstock Benzene prices. Additionally, the elevated costs
of upstream Naphtha and Crude oil exerted a considerable impact on LAB
production expenses, reinforcing the overall upward price trend for the
quarter. The demand from the regional downstream surfactant industry remained
steady. Notably, prevailing inflation and high-interest rates in the European
region led to delays in production run rates, prompting manufacturers to adjust
commodity pricing to maintain profitability. Moreover, the supply of LAB from
European countries, particularly the Netherlands and Belgium, faced
constraints, visibly impacting the price dynamics of the product. Eurostat data
indicated a decline in European industrial activities in the preceding month,
with the Industrial Production output in the Euro Area experiencing a -1.1% change
in August 2023 compared to the previous month. This sentiment appeared to
persist into September in the current quarter.
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Created on Dec 27th 2023 23:15. Viewed 53 times.