Linear Alkyl Benzene (LAB) Price Trend Analysis: Q4 2024
In Q4 2024, LAB prices experienced a two-phase trend. In the first half of the quarter, LAB prices rose due to a combination of factors. Strong demand from the consumer goods sector, particularly for detergents during the pre-holiday season, led to an uptick in LAB consumption. Additionally, suppliers faced some logistical disruptions and tightness in raw material availability, pushing up the prices in the early part of Q4.
However, this upward trajectory reversed in the second half of Q4, as the industry entered a destocking phase. Manufacturers began to reduce inventory levels, anticipating lower demand after the peak holiday period. The price decline was also influenced by a weakening of crude oil prices and lower feedstock costs.
This destocking, coupled with a slower pace of global economic growth, caused a drop in LAB prices during the latter half of Q4. Overall, Q4 2024 ended with a more cautious outlook for the LAB market, as manufacturers adjusted to more stable pricing conditions for the coming year.Â
Linear Alkyl Benzene (LAB) Price Trend Analysis: Q3 2024
In Q3 2024, LAB prices followed a volatile trend. During the first half of the quarter, prices saw a decrease due to a reduction in demand during the mid-summer months, traditionally a quieter period for the detergent and cleaning industries. In July 2024, LAB prices in China experienced a monthly decrease of around 2%, settling at USD 1,528 per metric ton. This decline was linked to a reduction in upstream benzene prices, which lowered production costs for LAB. This was coupled with a temporary reduction in production costs, as feedstock prices stabilized following the highs seen in Q2. Lower demand, coupled with stable feedstock costs, led to a short-term price drop in the early part of Q3.
However, the second half of the quarter saw a recovery in LAB prices as global economic conditions improved and demand rebounded, particularly in key markets like Asia and Europe. Manufacturers replenished inventories following the destocking that occurred earlier in the year, creating upward pressure on LAB prices towards the end of the quarter.
This recovery also coincided with increased industrial activity in the lead-up to Q4, further driving prices back up.Â
Linear Alkyl Benzene (LAB) Price Trend Analysis: Q2 2024
In Q2 2024, Linear Alkyl Benzene (LAB) prices saw a notable increase, driven by a combination of factors that affected both supply and demand. By Q2 2024, LAB prices rebounded with a 2.5% increase in China, driven by a resurgence in demand as end-use industries began restocking and ramping up production.
This uptick was further fuelled by rising production costs and supply chain disruptions. Key drivers included higher feedstock costs, particularly for benzene and long-chain alkenes, which saw price surges due to limited availability and fluctuations in crude oil prices. Additionally, increased demand from detergent manufacturers in both emerging and developed markets contributed to upward price pressure.
The rising production costs, combined with robust demand from the household and industrial cleaning sectors, led to LAB price increases during the second quarter. Companies across the supply chain, from petrochemical producers to end-users, faced increased operational costs, which were reflected in the market pricing.Â
Linear Alkyl Benzene (LAB) Price Trend Analysis: Q1 2024
In the APAC market, Linear Alkyl Benzene (LAB) prices experienced notable fluctuations across 2024. In Q4 2023, LAB prices peaked due to high demand. However, this trend reversed in Q1 2024, when prices fell by approximately -2% in China compared to the previous quarter, with similar declines observed in India. This drop was attributed to reduced demand following the peak consumption period and possibly an oversupply situation or increased production capacity.Â
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