Linear Alpha Olefin (LAO) Prices

Linear Alpha Olefin Prices  June 2024

The linear alpha olefin prices in the United States for Q2 2024 reached 1191 USD/MT in June. The region witnessed a rise in prices because of the robust domestic demand, especially for products like surfactants, lubricants, and detergents. Summer procurement and expectation of the hurricane season bolstered this trend, alongside heightened competition with Middle Eastern and Asian suppliers. Prices reflected intense market dynamics, with domestic and export deliveries nearing parity.

The price trend for linear alpha olefin in Japan for Q2 2024 settled at 1323 USD/MT in June. Japan witnessed a steep price decline primarily due to seasonal aspects as well as dwindling demand from industries. An oversupply coupled with weak demand further pressured prices downward. With limited signs of immediate recovery, this bearish trend reflects ongoing market struggles amid excess supply and insufficient demand.

In Belgium, the linear alpha olefin prices for Q2 2024 reached 1131 USD/MT in June. The market witnessed declining prices because of high feedstock accessibility, increased competition, and ongoing industrial slowdowns. High inventory levels, coupled with reduced demand, put additional pressure on prices. Challenging logistics, including port congestion, intensified these declines, reflecting a bearish market landscape in Belgium amid adverse economic and supply factors.

The price trend for linear alpha olefin in Saudi Arabia for Q2 2024 settled at 1292 USD/MT in June. The market faced significant price declines because of high feedstock costs, reduced production during Hajj, and weakened demand. Geopolitical disruptions along with elevated shipping costs contributed to an ongoing bearish trend, with oversupply adding further pressure on prices, which continued to drop in response to challenging market conditions and fluctuating crude levels.

Linear Alpha Olefin Prices March 2024

The linear alpha olefin prices in the United States for Q1 2024 reached 997 USD/MT in March. The region faced an early bearish trend because of the decreased demand along with lower feedstock prices, leading to downward pressure on prices. The market rebounded slightly mid-quarter with new ethylene contracts, stabilizing prices.

The price trend for linear alpha olefin in Japan for Q1 2024 settled at 1423 USD/MT in March. The market faced notable price changes driven by strong demand in homecare and cosmetics products, partly due to Lunar New Year activities. Supply constraints, high inventory needs, and elevated freight costs influenced prices, creating a stable yet fluctuating market. Overall, the domestic demand supported a positive pricing trend, despite ongoing supply challenges.

In Belgium, the linear alpha olefin prices for Q1 2024 reached 1352 USD/MT in March. Belgium witnessed an increase in prices supported by easing downturns and improved supply contracts with Middle Eastern and United States sources. Despite increased prices, high consumer costs and interest rates affected sectors like cosmetics, curbing the demand. Supply chain disruptions and economic pressures maintained a cautious outlook, but the pricing trend remained slightly bullish amid moderate demand.

The price trend for linear alpha olefin in Saudi Arabia for Q1 2024 settled at 1242 USD/MT in March. The market witnessed tightening supplies and steady demand, pushing prices upward. Strong sales and low inventories continued to maintain pressure on availability while increasing feedstock costs bolstered downstream prices. Although energy costs tempered gains, construction-driven demand sustained a positive outlook, contributing to a largely bullish pricing environment despite fluctuating export sentiment.

Linear Alpha Olefin Prices December 2023

The linear alpha olefin prices in the Brazil for Q4 2023 reached 860 USD/MT in December. The market saw a bearish trend during Q4 2023 due to declining local demand along with increased imports from the U.S. economic constraints, including reduced government spendings and financial pressures on major players, contributed to a challenging market environment.

The price trend for linear alpha olefin in Saudi Arabia for Q4 2023, reached 1150 USD/MT in December.  The market experienced price volatility amid fluctuating crude oil prices and feedstock shortages. The market saw a major rise in the C10 blend price, influenced by global supply constraints and geopolitical factors. However, overall market conditions remained mixed, with some price reductions observed towards the quarter's end as supply tensions eased slightly.

Regional Coverage

The report provides a detailed analysis of the linear alpha olefin market across different regions, each with unique pricing dynamics influenced by localized market conditions, supply chain intricacies, and geopolitical factors. This includes price trends, price forecast and supply and demand trends for each region, along with spot prices by major ports. The report also provides coverage of ex-works, FOB, and CIF prices, as well as the key factors influencing the linear alpha olefin price trend.

Global Linear Alpha Olefin Price

The report offers a holistic view of the global linear alpha olefin pricing trends in the form of linear alpha olefin price charts, reflecting the worldwide interplay of supply-demand balances, international trade policies, and overarching economic factors that shape the market on a macro level. This comprehensive analysis not only highlights the current price but also provides insights into linear alpha olefin historical price trends, enabling stakeholders to understand past fluctuations and their underlying causes.

The report also delves into linear alpha olefin price forecast models, projecting future price movements based on a variety of indicators such as expected changes in supply chain dynamics, anticipated policy shifts, and emerging market trends. By examining these factors, the report equips industry participants with the necessary tools to make informed strategic decisions, manage risks, and capitalize on market opportunities. Furthermore, it includes a detailed linear alpha olefin demand analysis, breaking down regional variations and identifying key drivers specific to each geographic market, thus offering a nuanced understanding of the global pricing landscape.

Europe Linear Alpha Olefin Price

Q2 2024:

During the second quarter of 2024, the European market witnessed a definite price decline, driven by multiple market pressures. The quarter was marked by prominent inventory levels from prior stockpiling efforts, lower electricity costs, and heightened availability of feedstocks. Economic slowdowns and a downturn in industrial demand kept sentiment bearish, adding to downward price pressures. High freight costs and congestion at key ports added to logistical challenges, making imports slower and more expensive. European producers witnessed mounting competition from suppliers in Asia and the Middle East, further accelerating price declines. In Germany, the drop was particularly steep, influenced by seasonal trends, plant disruptions, and supply chain strains, creating a decidedly challenging pricing environment.

Q1 2024:

In the first quarter of 2024, the European market encountered mixed pricing dynamics, with a largely bullish trend. Prices increased because of signs of stabilization in manufacturing sectors, particularly in lubricants and surfactants, along with increasing ethylene costs. The market across Europe also faced supply chain challenges from adverse weather and strikes, adding complexity to price movements. Inventory levels rose as producers prepared to improve downstream activity, particularly in sectors showing signs of demand recovery. Overall, the first quarter of 2024 presented a nuanced picture, with price gains tempered by broader economic pressures, yet signs of growth are emerging.

Q4 2023:

During the fourth quarter of 2023, the prices in Europe experienced a decrease as a result of excess production coming from the U.S. and China. Large manufacturers operate their operations at less than full capacity due to a decrease in automotive demand. Ethylene prices decreased due to excess supply in the local market and rising imports from foreign countries. Low demand persisted due to large inventories and reduced government backing for green energy initiatives throughout Europe. Due to abundant natural gas reserves, the prices of feedstock decreased. Planned maintenance closures in European factories assisted in aligning supply and demand, however market conditions remained subdued due to global logistics obstacles and political tensions affecting supply chains.  

This analysis can be extended to include detailed linear alpha olefin price information for a comprehensive list of countries.

North America Linear Alpha Olefin Price

Q2 2024:

During the second quarter of 2024, the North American market experienced significant price increases, largely fueled by various economic pressures. Key contributors to this upward trend included rising costs for feedstock materials such as ethane and ethylene, as well as peak freight rates along with limited tanker availability. Adding to these factors, a narrowing ethane premium and rising natural gas prices have intensified cost pressures on producers. Supply disruptions driven by unexpected shutdowns at major facilities, including Shell Chemicals' Deer Park plants and ExxonMobil's Baytown, further tightened market conditions. The combined impact of these dynamics led to elevated LAO prices across North America, underscoring a robust and pressured market environment.

Q1 2024:

In Q1 2024, the market across North America witnessed a combined but overall bullish pricing environment, with early signs of a minor downward trend. In the United States, the market faced notable price shifts, especially as the reduced demand along with lower feedstock prices created bearish sentiment during the quarter’s initial half. This dip reflected the weak manufacturing demand as well as heightened rivalry from American and Middle Eastern suppliers, pressuring LAO prices. However, new ethylene contracts brought moderate price increases mid-quarter, resulting in a generally stable yet lower year-over-year pricing landscape. By the quarter’s end, the LAO market exhibited signs of stability, closing with moderate recovery but at slightly reduced price levels as compared to previous quarters.

Q4 2023:

In Q4 2023, the prices in North America showed a decline. This decrease was caused by an excess of ethylene feedstock and energy supplies, aligning with robust domestic production of crude oil and gas. The market had an abundance of supply and a shortage of demand for polyethylene grades, primarily due to elevated inventory levels and growing interest rates. Even though consumers remained strong in retail industries, the housing demand recovery was hindered by elevated mortgage rates, leading to a decreased consumption of the product’s lubrication grades. Inventories were reduced by suppliers due to inflationary pressures at the year's end, worsened by economic uncertainty and the Suez Canal crisis, leading to a weak market stance. 

Specific linear alpha olefin historical data within the United States and Canada can also be provided.

Middle East and Africa Linear Alpha Olefin Price

Q2 2024:

The market across the Middle East and Africa faced notable pricing declines during Q2 of 2024, impacted by a range of interconnected factors. In both March and April, rising global oil prices increased the cost of feedstock, put pressure on the ethylene chain downstream, and led to the incorporation of LAO products. Geopolitical disruptions and tensions in shipping routes throughout the region worsened market conditions by increasing freight costs and triggering substantial delays, reducing appeal for buyers across the world and fostering a bearish market outlook. In Saudi Arabia, where price reductions were particularly steep, seasonal factors like reduced manufacturing hours throughout Hajj compounded the downturn.

Q1 2024:

In Q1 2024, the market across the Middle East and Africa experienced a mix of price fluctuations shaped by various factors. Strong export demand for linear alpha olefin from Asia and Europe supported a bullish sentiment, contributing to price gains. Rising ethylene feedstock prices also drove costs higher for downstream products like surfactants and detergents, adding to LAO’s price momentum. In Saudi Arabia, where prices saw the most significant shifts, limited domestic supply amid high sales volumes tightened availability, as suppliers increased inventory to meet robust demand. Although constrained supply supported price recovery close to last year’s levels, elevated energy costs added downward pressure.

Q4 2023:

The Middle East and Africa's market had varying results during Q4 2023. A moderate supply was witnessed, but it was impacted by worldwide ethylene shortages, resulting in reductions in production. Demand varied due to seasonal fluctuations and higher costs of raw materials. Geopolitical unrest and elevated crude prices continued to weigh on the market. The prices of the C10 blend varied greatly across Saudi Arabia due to these worldwide factors. The trading landscape was made complex by a mix of supply challenges and geopolitical issues present in the overall market environment.  

In addition to region-wise data, information on linear alpha olefin prices for countries can also be provided.

Asia Pacific Linear Alpha Olefin Price

Q2 2024:

During Q2 2024, the market across Asia Pacific faced notable challenges, marked by consistent price declines. An inadequate demand environment, especially from the lubrication sector, coupled with limited interest from the surfactant industry, exerted a steady sliding strain on linear alpha olefin prices. Declining upstream ethylene costs, due to softer prices of crude oil, further added to the price drop. Meanwhile, an oversupply circumstance intensified because of inventories accumulated in the Asia Pacific, intensified by port jams and logistical setbacks at key hubs. With no significant shutdowns of plants affecting production, the excess supply stemmed primarily from the weak demand. This combination of factors reinforced a bearish market sentiment throughout the quarter.

Q1 2024:

In Q1 2024, the Asia Pacific market exhibited mixed pricing trends, although overall sentiment remained positive with a rising trend in prices. The region saw notable price increases, because of high inventory demands, supply shortages, and robust domestic consumption, especially in sectors like homecare and cosmetics, driven by Lunar New Year celebrations. Japan experienced marked price fluctuations due to limited supply, heightened demand, and global inflationary pressures, which also impacted freight costs. While suppliers worked to meet demand by boosting inventory levels, shipping disruptions and container shortages, especially from the Middle East, added complexities.

Q4 2023:

The Asia Pacific region witnessed a bearish sentiment in linear alpha olefin prices during Q4 2023. There was a mix of stability and decline in feedstock ethylene costs, with lower demand from sectors such as construction and automotive in China due to economic constraints like the real estate catastrophe and high fuel prices. The market also saw reduced automotive demand in Latin Korea and Japan, compounded by a drop in global export levels. Exports of linear alpha olefin-based products to other markets were affected by seasonal downturns and high shipping costs, keeping the overall market subdued despite slight improvements in trade volumes with North America.  

This linear alpha olefin price analysis can be expanded to include a comprehensive list of countries within the region.

Latin America Linear Alpha Olefin Price

Q2 2024:

During the second quarter of 2024, the prices for linear alpha olefin across the Latin American region witnessed a rise in trend, due to several interconnected market pressures. The rising costs of feedstock materials, especially ethane and ethylene, alongside limited tanker availability, and escalating freight charges, contributed to the price surge. Additional cost pressures arose from a decreasing ethane premium and increasing natural gas prices, which pushed supply costs even higher. Notably, the US adjusted prices aloft for hexene shipments into the Latin American region owing to persistently high domestic costs. Brazil observed the steepest price increases in the region, bolstered by robust domestic demand for products like surfactants, lubricants, and detergents.

Q1 2024:

The analysis of linear alpha olefin prices in Latin America provides a detailed overview, reflecting the unique market dynamics in the region influenced by economic policies, industrial growth, and trade frameworks.

Q4 2023:

The market in Latin America faced challenges in the fourth quarter of 2023, mainly due to oversupply and economic factors like high corporate debt along with steep interest rates. The decrease in local demand, combined with significant price fluctuations, resulted in increased dependence on imports, mainly from the U.S. In Brazil, major companies such as Petrobras faced financial constraints, leading to a decline in domestic consumption of linear alpha olefin. Despite lower local production levels, feedstock costs in comparison to U.S. prices stayed elevated, which continued to push down the market throughout the quarter.  

This comprehensive review can be extended to include specific countries within the region.

Linear Alpha Olefin Price Trend, Market Analysis, and News

IMARC’s newly published report, titled “Linear Alpha Olefin Prices, Trend, Chart, Demand, Market Analysis, News, Historical and Forecast Data Report 2024 Edition,” offers an in-depth analysis of linear alpha olefin pricing, covering an analysis of global and regional market trends and the critical factors driving these price movements.

It encompasses an in-depth review of spot price of linear alpha olefin at major ports, a breakdown of prices including Ex Works, FOB, and CIF, alongside a region-wise dissection of linear alpha olefin price trend across North America, Europe, Asia Pacific, Latin America, the Middle East and Africa.

The report examines the elements influencing linear alpha olefin price fluctuations, such as changes in raw material costs, supply-demand dynamics, geopolitical factors, and industry-specific developments. Additionally, it integrates the latest market news, providing stakeholders with up-to-date information on market shifts, regulatory changes, and technological advancements, thereby offering a comprehensive overview that aids in strategic decision-making and forecasting.

Linear Alpha Olefin Market Analysis

The global linear alpha olefin market size reached US$ 9.7 Billion in 2023. By 2032, IMARC Group expects the market to reach US$ 13.6 Billion, at a projected CAGR of 3.70% during 2023-2032.

• The escalating demand for detergents and surfactants industry is expanding the market for cleaning products, particularly in developing countries. The demand for bio-based LAOs as raw materials for surfactants and detergents is growing. This increase is supported by a shift in consumer preferences toward environmentally friendly and biodegradable cleaning products. Consequently, the leading players are investing in plant expansion activities to meet the growing demand. In April 2022, Shell company secured an endorsement from the state Board of Commerce and Industry for an Industrial Tax Exemption Program break for the Geismar project of $1.4 billion. It aims to create a world-scale linear alpha olefin plant for producing detergents, waxes, plastics, and premium lubricants, which will be manufactured at this site. It is the sixth instance of Shell Chemical deploying its proprietary technology to produce linear alpha olefins at one of its locations, as revealed in documents received from the agency.
• The automotive lubricants market grows explicitly due to the demand for synthetic lubricants, which outperform other synthetics because LAOs are indispensable raw materials for synthetic lubricants and lubricant additives. The global automotive lubricants market reached US$ 78.6 Billion in 2023, according to the statistics provided by the IMARC Group. It is estimated to reach US$104.7 Billion by 2032, with a Compound Annual Growth Rate (CAGR) of 3.1% from 2024 to 2032.The rising concern about efficiency and maintenance costs increases the consumption of synthetic lubricants that contain LAOs. Base oils, gear oils, additives, transmission fluids, and engine oils all use LAOs as feedstock.
• The growing awareness of environmental hazards and regulatory requirements to limit carbon emissions have spurred the development of greener alternatives across various industries. Bio-based linear alpha olefins, derived from renewable sources, are emerging as ecologically acceptable solutions to replace petroleum-based LAOs.

Linear Alpha Olefin News

The report covers the latest developments, updates, and trends impacting the global linear alpha olefin market, providing stakeholders with timely and relevant information. This segment covers a wide array of news items, including the inauguration of new production facilities, advancements in linear alpha olefin production technologies, strategic market expansions by key industry players, and significant mergers and acquisitions that impact the linear alpha olefin price trend.

Latest developments in the linear alpha olefin industry:

• In 2023, ExxonMobil unveiled an investment of USD $2 billion to manufacture linear alpha olefin (LAO) with the startup of two (2) new chemical production units at Texas, Baytown producing facilities which is a part of their long-term growth plans to supply higher value products from their U.S Gulf coast chemical and refining facilities.

Product Description

Linear alpha olefins are a class of organic compounds with a general molecular formula of CnH2n. They are alkenes, which means they contain at least one carbon-carbon double bond. Linear specifies the compound’s straight-chain structure, emphasizing the absence of any side branches.

Linear alpha olefins are produced by ethylene oligomerization, a process in which a number of ethylene molecules combine to form longer carbon chains. Generally, this production route requires specialized catalysts and reaction conditions to ensure that the resulting LAOs are straight-chain and have the requisite length.

Linear alpha olefins are used in a variety of industries. Additionally, LAOs are widely used as comonomers in various polyethylene types, improving their flexibility, clarity, toughness, and many other characteristics. Surfactants and detergents, particularly high-quality surfactants, are closely related to linear alpha olefins. Linear olefins are also deployed in the formulation of engine oils and other lubricants to provide benefits such as viscoelasticity, thermal stability, and wear protection benefits.

Report Coverage

Key Benefits for Stakeholders:

• IMARC’s report presents a detailed analysis of linear alpha olefin pricing, covering global and regional trends, spot prices at key ports, and a breakdown of Ex Works, FOB, and CIF prices.
• The study examines factors affecting linear alpha olefin price trend, including raw material costs, supply-demand shifts, geopolitical impacts, and industry developments, offering insights for informed decision-making.
• The competitive landscape review equips stakeholders with crucial insights into the latest market news, regulatory changes, and technological advancements, ensuring a well-rounded, strategic overview for forecasting and planning.
• IMARC offers various subscription options, including monthly, quarterly, and biannual updates, allowing clients to stay informed with the latest market trends, ongoing developments, and comprehensive market insights. The linear alpha olefin price charts ensure our clients remain at the forefront of the industry.