Linear Alpha Olefins Price Trend and Forecast

Regional Price Overview

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 Olefin Price Trend for the October - December of 2023

Asia

The Asian markets, especially China, faced the problem of oversupply of Linear Alpha Olefin in the region. In contrast, its demand in the domestic and overseas markets did not show any significant appreciation. The industrial sector of China also experienced a slowing down in its pace, which further complicated the movement of Linear Alpha Olefin price trend. However, in India, the Linear Alpha Olefin prices took on a bullish run as limited supplies reached Indian shores amid the restricted trade activities at the Red Sea.

Linear Alpha Olefins Price Chart

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Europe

In the last quarter of 2023, the logistical challenges overtook the subdued market activities of the European countries as they were the center of a major global crisis. The disruption of the Red Sea Route and additional sanctions on Russian imports restricted the influx of raw materials and other imports into the region and caused ripples in its industrial sector. Further, adverse weather conditions and abrupt rainfall also enhanced the existing list of challenges and, as a result, prevented the growth of Linear Alpha Olefin prices.

North America

Linear Alpha Olefin prices continued their downward trend in North America due to a downturn in the industrial sector and a decrease in manufacturing costs. Even during the Christmas holiday season, the downstream and direct consumer demand, especially from the cosmetics sector, remained muted, which kept Linear Alpha Olefin prices low.

Additionally, unfavorable weather, a decline in export rates to European markets, and issues in the industrial demand for lubricating oil and surfactants contributed to the decline in Linear Alpha Olefin prices.

Analyst Insight

According to Procurement Resource, the price trend of Linear Alpha Olefin are expected to struggle in the coming quarter, given the current volatilities in the demands from the downstream pharmaceutical and food sector.

Linear Alpha Olefins (LAOs) Price Trend for the July-September of 2023

Asia

The Asian Linear Alpha Olefins market observed mixed price trend during the third quarter of the year 2023. The present inventories were still able to support the existing downstream demands initially in the first month of the quarter. However, the market demands in the detergents and fuel additives sectors saw a steady rise from the middle of the quarter, and the supplies started falling short.

So, this shift in market dynamics pulled the Linear Alpha Olefin price graph up. The rise in crude oil prices also motivated the production costs. Conclusively an overall inclination in the Linear Alpha Olefin price trend was observed after having a slow start at the beginning of quarter three of 2023.

Europe

The European Linear Alpha Olefin market was heavily influenced by the Asian market trend as the prices observed fluctuating patterns here as well. The first half of the quarter was relatively tepid compared to the latter half of the quarter. The third quarter began with dull demands in the month of July; however, as the middle of the quarter approached the downstream demands from the lubricants and adhesive industries started observing a steady rise. Hence, the prices started rising as the gap between supply and demand widened. Overall, mixed market sentiments were observed for Linear Alpha Olefin in the European market during the given period of Q3’23.

North America

The North American Linear Alpha Olefin market followed the global market trend as the prices rose steadily in the third quarter. The market demands from the detergents and chemical industries drove the market fundamentals. Overall, a mixed wavering price graph was observed for Linear Alpha Olefin during the said period.

Analyst Insight

According to Procurement Resource, the price trend for Linear Alpha Olefin are expected to continue behaving in a similar manner, since all the market drivers suggest a steady nature of supply and demand gap.

Linear Alpha Olefins Price Trend for the First Half of 2023

Asia

Linear Alpha Olefins are produced from ethylene and are used in plastics, fuel, chemical, adhesive, and detergent industries. Majorly supportive but mixed price trend were observed for Linear Alpha Olefins during the first two quarters of the year 2023. With persistent revival efforts in the Chinese market to fight the consequences of such long-term lockdowns, the downstream demands for Linear Alpha Olefins surged at the beginning.

The prices were also set on an upward trajectory as the demand dynamics improved. These positive trend continued till the middle of the second quarter. It was only in the latter half of Q2’23 that the prices started subsiding marginally because the excessive supplies started piling up in the inventories as the demands plateaued after rising till a certain point. Overall, very positive market sentiments were observed with healthy market kinetics.

Europe

Mimicking the mixed price trend of the Asian market, the LAO prices in Europe also fluctuated throughout the said period. At first, encouraged by fresh demands, the prices rose in the first quarter; however, the rising momentum reversed with the shift in quarters. Linear Alpha Olefins prices declined in the second quarter to accommodate excess supplies.

North America

The North American Linear Alpha Olefins market almost replicated the European market trend since the prices first grew in Q1 and declined in Q2. Downstream demands from consuming sectors drove these price trend. Overall, market behavior was supportive.

Analyst Insight

According to Procurement Resource, given the demand dependence of Linear Alpha Olefins, the prices are likely to continue to oscillate in the coming times as well.

Linear Alpha Olefins Price Trend for the Second Half of 2022

Asia

The price trend 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 trend. 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.

Europe

Linear Alpha Olefins’ price trend 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.

North America

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 trend at all.

Analyst insight

According to Procurement Resource, the linear alpha-olefin price trend 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

Asia

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.

Europe

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 trend 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.

North America

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 trend 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.

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