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United StatesIn Q4 2024, the global LABSA market is likely to experience more pronounced seasonal effects, particularly in the Asia-Pacific and North American regions. In Asia, a sustained recovery in demand may lead to a stabilization or slight increase in prices, especially in China, where consumer trends are expected to strengthen during the holiday season.
South Korea may also see a boost in demand as end-users replenish inventories. In Europe, the positive momentum is expected to persist into Q4, driven by consistent demand from key sectors. Prices may continue to rise, particularly if supply constraints remain in place.
At the outset of Q3 2024, the price of LABSA exhibited a downward trend in the APAC region. This trend was influenced by several key factors, including inadequate cost support from the feedstock LAB market, as the prices of raw material LAB declined, further reducing production costs and resulting in a bearish market outlook.
Conversely, in Europe, prices remained stable during the first month of Q3 2024, attributed to a narrow gap between demand and supply. Following the decline, the price of LABSA FOB Shanghai is currently approximately USD 1354 per metric ton.
In Q2 2024, the Asian LABSA market experienced significant price fluctuations due to changes in consumer demand and inventory levels. In China, LABSA prices dropped by about 2%, reflecting a slight decline in demand as manufacturers adjusted their purchasing strategies in response to higher stock levels and shifting consumption patterns in end-user sectors.
In contrast, the North American market faced challenges, with LABSA prices falling by 7% compared to the previous quarter. This decline was due to weakened demand from key industries, as manufacturers dealt with excess inventory and rising production costs, leading to a more cautious procurement approach.
Meanwhile, the European market showed a more positive trend, with pricing fundamentals improving significantly and LABSA prices increasing by approximately 8% during the same period.
In the APAC region, the Global LABSA market exhibited mixed trend influenced by varying end-user demand and the availability of the commodity. In South Korea, LABSA prices experienced a downward trajectory by around 3.5% in Q1 2024 compared to Q4 2023, reflecting a combination of reduced demand from key sectors and increased inventory levels that led to a surplus in the LABSA market.
This decline suggests a temporary easing in the urgency for procurement as manufacturers recalibrated their production schedules in response to market conditions. Conversely, the LABSA price dynamics in China showed a more optimistic trend, with prices rising by 4% during the same period. This increase was attributed to stronger end-user demand, particularly from the detergent and personal care industries.
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Molecular Weight[g/mol]
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Molecular Formula
Linear Alkyl Benzene Sulfonic Acid (LABSA) is an essential anionic surfactant primarily used in the production of household detergents and industrial cleaning products. It is produced by sulfonating Linear Alkyl Benzene (LAB) with oleum or sulfur trioxide, followed by neutralization with sodium hydroxide. LABSA is known for its excellent foaming and cleaning properties, making it an ideal ingredient in laundry detergents, dishwashing liquids, and shampoos. Major producers of LABSA include firms such as BASF, Clariant, and Huntsman Corporation. The global production process involves a highly controlled sulfonation reaction, ensuring high purity and performance. LABSA is widely used in detergent formulations due to its high efficiency, low environmental impact, and cost-effectiveness.
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PriceWatch Quotation Terms:
Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.
| Characteristics | Specification |
| Density (gm/ml. at 20°c) | 1.04 to 1.06 |
| Free Oil | 2% max |
| Appearance | Honey Brown Liquid |
| Colour Klett (Max) (5% Solution/40mm) | 30 |
| Odor Characteristic | Odor |
| Active Ingredients | 96% Min |
| Free Sulphuric Acid | 2% max |
| Inorganic acid content | % ≤1.5 |
Applications
Linear Alkyl Benzene Sulphonic Acid used in Personal Care Products, Detergents and Cleaning Products, Textile Industry, Agricultural Products and Oil Field Applications.
The price of LABSA is influenced by several factors, including the cost of raw materials like Linear Alkyl Benzene (LAB), which is derived from petrochemicals such as benzene and olefins. Fluctuations in crude oil prices, supply-demand dynamics, and production costs in the chemical industry also play a major role. Additionally, changes in transportation and logistics costs, regulatory restrictions, and environmental compliance can further affect the pricing. Understanding these factors helps procurement heads anticipate price shifts and manage their budget more effectively.
Global demand significantly impacts LABSA pricing. As LABSA is a key ingredient in detergents and cleaning products, rising demand from industries such as household cleaning, personal care, and industrial cleaning boosts the need for LABSA. When demand spikes, especially in fast-growing markets like Asia-Pacific, it can lead to supply shortages and higher prices. Procurement heads should monitor global market trends to predict demand-driven price changes and secure contracts accordingly to avoid paying a premium.
Procurement teams can secure the best pricing for LABSA by building strong relationships with suppliers, negotiating long-term contracts to lock in stable prices, and diversifying their supplier base to reduce dependency on a single source. Keeping an eye on market trends, such as feedstock price movements and global demand shifts, allows procurement heads to time their purchases more strategically. Collaborating with suppliers to ensure a reliable and cost-effective supply chain is also key in securing favourable LABSA pricing.
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