linear alpha olefins Pricing Assessment

  • Commodity Pricing

Markets Covered: 

usUnited States
saSaudi Arabia
inIndia
mxMexico
trTurkey
arArgentina

Linear Alpha Olefins Price Trend, Analysis and Forecast

As of August 2024, Linear Alpha Olefin (LAO) prices saw a slight decrease, with the price reaching USD 797 per metric ton, reflecting a minor decline of 0.62% from July’s price of USD 802. In Q2 2024, the average price had been USD 840, marking a notable decrease of 8.40% from Q1’s average of USD 917.

Throughout the second quarter and into the summer months, pricing pressures had been driven by factors such as changes in feedstock availability, shifting demand patterns across key industries, and regional production challenges. The significant decrease from Q1 to Q2 could be attributed to supply chain disruptions and slower demand growth in the petrochemical sector.

Looking ahead, the LAO market is expected to continue facing price fluctuations, largely driven by ongoing feedstock cost dynamics and the impact of operational adjustments at production facilities. While short-term price stability may be influenced by seasonal demand patterns, there will still be uncertainty about the future direction of prices.

Long-term price outlooks will remain uncertain, with procurement teams needing to keep a close watch on feedstock market trends, regional production shifts, and global economic factors that could further influence prices in the coming months. Strategic planning will be essential as market volatility is likely to continue shaping the LAO pricing landscape.

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is your trusted resource for tracking global linear alpha olefins price trends. Our platform delivers real-time data and expert analysis, offering deep insights into the key factors driving price fluctuations in the linear alpha olefins market. By monitoring critical events such as geopolitical tensions, supply chain disruptions, and economic shifts, keeps you fully informed of market dynamics.

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Historically, several events have caused significant fluctuations in linear alpha olefins prices

  • Russia-Ukraine Conflict (2022-Present): The ongoing conflict has led to significant disruptions in global supply chains, particularly in Europe. As LAO production is closely linked to ethylene, which is derived from natural gas and crude oil, the war has escalated energy prices and contributed to increased volatility in LAO prices across multiple regions.
  • Global Energy Price Volatility (2021-2022): Fluctuations in crude oil and natural gas prices had a direct impact on the production costs of ethylene, a key feedstock for LAO. These fluctuations triggered price adjustments in the LAO market, especially in major producing regions like North America and the Middle East.
  • COVID-19 Pandemic (2020-2021): The pandemic initially caused a drop in demand for petrochemical products, including LAO, due to lockdowns and reduced industrial activities. However, as global economies reopened, demand surged, particularly in sectors such as automotive, detergents, and plastics, leading to a significant rebound in LAO prices.
  • Geopolitical Tensions and Trade Wars (2018-2019): Trade disputes, especially between the U.S. and China, created uncertainty in global markets and impacted the petrochemical sector. Tariffs and trade restrictions on ethylene and related products contributed to price volatility in LAOs, especially in markets relying heavily on trade routes for supply.
  • Environmental Regulations and Sustainability Efforts (2019-Present): Increasingly stringent environmental regulations in key production regions like Europe and Asia have placed additional costs on LAO production. This includes compliance with sustainability standards and carbon footprint reduction efforts, which have led to price increases for LAOs due to more expensive manufacturing processes.
  • Middle East Supply Chain Disruptions (2019-Present): The Middle East is a significant producer of ethylene, and any disruptions—whether due to political instability or natural disasters—affect the entire LAO production chain. These disruptions, such as those caused by regional conflicts, have led to periodic price spikes for LAOs, particularly in Europe and Asia.
  • USA Accidents and Conflicts (2018-Present): Accidents, such as chemical plant explosions and refinery outages in the U.S., have directly impacted LAO production. Notably, incidents like the 2020 fire at the Philadelphia Energy Solutions refinery caused temporary production halts, leading to supply shortages and price fluctuations. Additionally, domestic conflicts related to energy policy and environmental concerns have added further volatility to U.S. petrochemical production, contributing to higher LAO prices.

These events highlight the LAO market’s sensitivity to global disruptions, with geopolitical issues, energy price volatility, and industrial accidents being major influencers. Continuous monitoring of global supply and demand dynamics is essential for procurement teams to manage pricing risks effectively.

Methodology and Specifications

linear alpha olefins Pricing Assessment Research Methodology

Data Collection and Sources

  • Real-Time Market Data: PriceWatch aggregates real-time pricing data from global commodity exchanges, industry reports, and proprietary databases, ensuring our assessments reflect the most current market conditions for Linear Alpha Olefins (LAO).
  • On-the-Ground Intelligence: Our team gathers insights directly from key market participants, including producers, suppliers, traders, and end-users across major LAO production hubs. This ground-level intelligence is crucial for understanding localized market dynamics.
  • Supply Chain Monitoring: We track the entire LAO supply chain, from raw material availability to production and distribution channels. This includes monitoring feedstock prices, production capacities, and transportation logistics to understand how these factors influence price movements.

Event Tracking and Impact Analysis

  • Geopolitical Tensions: PriceWatch continuously monitors global geopolitical developments, such as conflicts, trade disputes, or sanctions, that can significantly impact LAO prices. Our analysis considers potential disruptions to supply chains and their immediate and long-term effects on pricing.
  • Natural Disasters and Climate Events: We assess the impact of natural disasters, such as hurricanes, floods, or droughts, on LAO production facilities, particularly in vulnerable regions. These events are factored into our price forecasts and supply outlooks, helping clients prepare for possible price fluctuations.
  • Economic Shifts: PriceWatch evaluates macroeconomic trends, including global economic growth, inflation rates, and sector-specific demand (e.g., automotive, detergents, plastics), to predict shifts in LAO demand and corresponding price movements.

Production Capacity and Supply Analysis

  • Current Production Monitoring: We maintain a comprehensive database of global LAO production facilities, tracking their operational status, production levels, and any planned shutdowns or expansions. This allows us to accurately assess current supply availability and how it may impact pricing.
  • Future Capacity Projections: Our research includes forecasts of upcoming LAO production capacities, factoring in new plant constructions, technological advancements, and capacity expansions. These projections help us predict future supply trends and potential price stabilization or fluctuations.

Demand Forecasting

  • Sectoral Demand Analysis: PriceWatch provides in-depth analysis of demand trends across key sectors, including automotive, detergents, and plastics, where LAO is widely used. We track year-on-year demand growth and project future consumption patterns based on economic indicators and industry developments.
  • Global Demand Dynamics: Our methodology considers regional demand variations and how they influence global LAO pricing. We also evaluate shifts in manufacturing bases and trade policies that may impact demand in specific regions.

Pricing Model Development

  • Dynamic Pricing Models: PriceWatch utilizes advanced econometric models to forecast LAO prices, incorporating real-time data, historical trends, and projected market conditions. Our models are continuously refined to enhance accuracy and predictive power, adapting to new information as it becomes available.
  • Scenario Analysis: We conduct scenario-based assessments to evaluate potential future market conditions, helping clients prepare for a range of market outcomes, such as price surges or downturns caused by external disruptions.

Reporting and Client Support

  • Comprehensive Reports: Clients receive detailed reports that include current price assessments, future price forecasts, and in-depth analysis of market drivers, providing clear insights and recommendations to support informed decision-making.
  • Ongoing Support: PriceWatch offers continuous updates and personalized support, ensuring clients have the most up-to-date information to navigate market changes. Our experts are available to discuss specific market developments, offer tailored advice, and address client queries.

This research methodology ensures that PriceWatch delivers the most accurate, timely, and actionable LAO pricing assessments, helping clients stay ahead of market trends and make well-informed business decisions.

Specifications

Molecular Weight[g/mol]

196.42 g/mol

CAS No

1120-36-1

HS Code

29012940

Molecular Formula

C14H28

linear alpha olefins

Linear Alpha Olefins (LAO) are a group of high-purity, synthetic hydrocarbons used as key intermediates in the production of various industrial chemicals. With excellent chemical stability, LAOs are essential in manufacturing detergents, lubricants, plasticizers, and synthetic oils. They are also used in the production of polyethylene and other specialty polymers. Known for their versatility, LAOs offer exceptional performance in a range of applications, including coatings, adhesives, and surfactants. Their reliable properties make them a critical component in industries like automotive, packaging, and personal care.

Packaging Type

Iso tanks

Grades Covered

Linear alpha olefin (LAO-C14-18), Linear alpha olefin (LAO-Tetradecane)

Incoterms Used

FOB USA, FOB Saudi Arabia, CIF Nhava Sheva_Saudi Arabia, CIF Manzanillo_USA, CIF Mersin_USA, CIF Buenos Aires_USA

Synonym

normal alpha olefins (NAO) or straight-chain terminal alkenes

Quotation Terms:

20-25 MT

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.

Property Typical Values Units
Carbon Number(C14) 98.92 Wt%
Vinylidene 4.85 Wt%
cis- and trans- 2-Tetradecene 0.2 Wt%
Paraffin 0.23 Wt%
Density 6.46 lb/gal
Water 30 ppm
Appearance Clear and Bright

 

Property Typical Values Units
Carbon Number
<C14 <2.5 Wt%
C14 39-48
C16 29-35
C18 17-26
>C18 <1.0
Specific Gravity 0.78
Viscosity 3.5 mm^2/s
Appearance Visual

Applications

Linear Alpha Olefins (LAOs) are highly versatile compounds with a wide range of applications across various industries. As key intermediates in the chemical industry, LAOs serve as essential building blocks in the production of detergents, surfactants, and lubricants. They are crucial in enhancing the performance of household and industrial cleaning products, contributing to better efficiency and stain removal. In the automotive sector, LAOs are used in the production of synthetic lubricants, fuel additives, and polymerization processes, which help improve fuel efficiency and reduce emissions. They are also integral to the manufacturing of lightweight composite materials, supporting the automotive industry’s sustainability goals. In addition, LAOs are utilized in the production of polyethylene, a critical material used in packaging and plastic products, further broadening their scope in industrial manufacturing. The agricultural sector also benefits from LAOs, where they are used as dispersing agents in pesticides and herbicides, improving the effectiveness of crop protection products. The polymer and plastic industries rely on LAOs as feedstocks in the creation of high-quality polymers used for a variety of applications, from consumer goods to industrial equipment. In the personal care and cosmetics industries, LAOs are incorporated into formulations for shampoos, lotions, and other beauty products, where they serve as emulsifiers and conditioning agents. With the growing demand for sustainable and eco-friendly solutions, LAOs are increasingly being explored in the development of biodegradable surfactants and other green alternatives, highlighting their growing importance in both industrial and consumer markets.

Disclaimer

Linear Alpha Olefins price provided by is a base price and excludes VAT/Taxes, discounts, or offers. The information herein is accurate to the best of our knowledge as of the date indicated and is provided solely for the convenience of our customers as a reference for linear alpha olefins. disclaims any warranties or representations regarding the accuracy of results derived from this information. It is the sole responsibility of the user to assess the suitability of the product for their specific application. This document does not constitute an endorsement to use the product in violation of any applicable patent rights.

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Frequently asked questions

What factors influence the pricing of Linear Alpha Olefins (LAO)? +

The pricing of Linear Alpha Olefins (LAO) is primarily influenced by the cost of raw materials such as ethylene, the key feedstock for LAO production. Fluctuations in crude oil prices also play a significant role, as they impact ethylene production costs. Other factors include global supply and demand dynamics, logistical costs, production capacity, and geopolitical events that may disrupt supply chains. Environmental regulations, such as stricter emissions standards and sustainability requirements, are also increasingly affecting LAO prices. Procurement teams should consider these factors to anticipate price changes and optimize purchasing strategies.

How do feedstock supply and demand affect LAO pricing trends? +

The price of Linear Alpha Olefins is closely tied to the availability and pricing of ethylene, which is typically derived from natural gas or crude oil. If there is a shortage of ethylene due to disruptions in oil production, refinery outages, or demand spikes in related industries, LAO prices are likely to rise. Conversely, a surplus of ethylene, driven by increased production or lower demand from other sectors, can result in reduced prices for LAOs. Procurement heads must monitor ethylene supply and demand trends closely to anticipate potential price fluctuations and adjust their sourcing strategies accordingly.

What are the regional price variations for LAOs, and how should procurement teams manage these differences? +

Linear Alpha Olefin prices can vary by region due to differences in feedstock availability, production capacities, and local demand. For example, regions with high production of ethylene, such as the Middle East and North America, may experience lower LAO prices due to more favourable production costs. In contrast, regions with limited ethylene production or high import costs, like parts of Europe, may see higher LAO prices. Procurement teams should take these regional price differences into account when developing sourcing strategies, including considering offshore sourcing, securing long-term contracts with regional suppliers, or optimizing logistics to reduce costs.

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