Get the latest insights on price movement and trend analysis of Linear Alpha Olefins in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).
Linear Alpha Olefins Price Trend for the Second Half of 2022
The price trends for Linear Alpha Olefins (LAO) remained fluctuating in the said period. The absence of any significant demand remained the major reason for the downing of price trends. Even though feedstock availability was hampered periodically due to OPEC+ policies, China’s power rationing also affected the upstream costs, but these couldn’t sustain the market. Sullen demand in the market kept the prices of linear alpha olefins low.
Linear Alpha Olefins’ price trends in Europe behaved no differently, they remained oscillating attributing to the seemingly everlasting energy crisis, gas prices skyrocketed, and inflation too weakened economies. Consequently, the market itself downsized as operations were cut down. Demand barely ever gained momentum in the last two quarters of the year 2022, which kept pressing the linear alpha-olefin prices from going up. Production costs sometimes pushed the prices but overall, a very uncertain and sullen price trend was observed.
The North American market for LAO remained doubtful during the second half of 2022. As the second half of the year is also accompanied by the holiday season, production and manufacturing units stayed shut and the sullen demand asked for the production to be cut down. The supply-demand clash didn’t aid the linear alpha-olefin price trends at all.
According to Procurement Resource, the linear alpha-olefin price trends are looking to be slumping. Growth in this trend requires market demand to rebound, however, it seems a little distant given the global economic recession.
Linear Alpha Olefins Price Trend For the First Half of 2022
Due to intense cost pressure from upstream energy inputs, the linear alpha olefins market in South Asia has been classified as stable during Q1. Since mid-January evaluations, crude oil prices have increased by more than 10%. Olefins, a crude oil derivative, have been under inflationary cost pressure which has led refiners to raise downstream pricing.
Consequently, the cost of linear alpha olefin was estimated at 52700 INR/MT for C20-24 grade and 70100 INR/MT on a CFR basis in March. Due to changes in the feedstock olefins and upstream energy markets during the second quarter, the prices of linear alpha olefins rose in the first half of the quarter and then stabilized. At the end of the second quarter, the price of C10 Linear Alpha Olefins in India settled at 940.81 USD/MT.
Since the beginning of the first quarter, Brent crude oil prices have been highly volatile, and LNG costs have skyrocketed owing to the Russian invasion of Ukraine which started in late February 2022. The cost pressure on downstream Linear Alpha olefins has intensified as a result of high Brent crude oil and LNG prices, and as a result, LAO prices climbed significantly in Q1. As a result, LAO C10 blends were valued at 1891 USD/MT FD basis as of March 2022, while C16-18 blends were valued at 2263 USD/MT on FD basis.
These strong price trends for linear alpha olefins continued in the second quarter. LAO prices rose steadily in the first part of the quarter before declining near the conclusion due to the looming speculations about a global recession. The price of C10 linear alpha olefins rose by 5% in the first two months, and in the second quarter, LAO prices fell by 7% and reached 1619 USD/MT FD in Germany.
A large portion of Q1 saw the olefins market stay positive due to high crude oil and natural gas prices. C16-18 LAO prices settled at 850 USD/MT as of March 2022, while C10 Linear Alpha Olefins blend prices were estimated at 790 USD/MT on a FOB basis. During the second quarter, natural gas prices skyrocketed, raising operating costs.
However, the demand pressure for olefins was lessened by stagnant demand and adequate inventory levels, which lowered the price trends for linear alpha olefins in the second quarter. The C10 grade was valued at 1040 USD/MT on a FOB basis. As the rumours of a US recession gained momentum near the end of the quarter, LAO demand decreased further. As a result, prices dropped by more than 10% by June 2022.
Procurement Resource provides latest prices of Linear Alpha Olefins. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.
Linear Alpha Olefins (LAO) are alkenes with double bonds at the primary or alpha position, the beginning of the hydrocarbon chain. The double bond's location enhances the compound's reactivity and opens a wide range of industrial applications. LOAs produced via oligomerization are used as starting materials for plastics, adhesives, detergents, and other products. The linear olefins are rare but can be made industrially in bulk quantities. Initially, olefins were obtained via the thermal cracking of petroleum and gasoline.
|Product Name||Linear Alpha Olefins|
|Industrial Uses||Fuel Additives, Lubricants, Plastics, Chemical Substrates, Adhesives, Detergents|
|Synonyms||Olefins, Alkenes, LAO|
|Supplier Database||Shell Chemicals, INEOSChevron Phillips Chemical|
|Region/Countries Covered||Asia Pacific: China, India, Indonesia, Pakistan, Bangladesh, Japan, Philippines, Vietnam, Iran, Thailand, South Korea, Iraq, Saudi Arabia, Malaysia, Nepal, Taiwan, Sri Lanka, UAE, Israel, Hongkong, Singapore, Oman, Kuwait, Qatar, Australia, and New Zealand
Europe: Germany, France, United Kingdom, Italy, Spain, Russia, Turkey, Netherlands, Poland, Sweden, Belgium, Austria, Ireland Switzerland, Norway, Denmark, Romania, Finland, Czech Republic, Portugal and Greece
North America: United States and Canada
Latin America: Brazil, Mexico, Argentina, Columbia, Chile, Ecuador, and Peru
Africa: South Africa, Nigeria, Egypt, Algeria, Morocco
|Currency||US$ (Data can also be provided in local currency)|
|Supplier Database Availability||Yes|
|Customization Scope||The report can be customized as per the requirements of the customer|
|Post-Sale Analyst Support||360-degree analyst support after report delivery|
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
In oligomerization, the substrate is grown by combining lower molecular weight mono-olefins such as ethylene. In this process. The ethylene monomers combine to form dimers, trimers, tetramers, etc., in the presence of an acid catalyst.
The displayed pricing data is derived through weighted average purchase price, including contract and spot transactions at the specified locations unless otherwise stated. The information provided comes from the compilation and processing of commercial data officially reported for each nation (i.e., government agencies, external trade bodies, and industry publications).
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