Linear alkylbenzene: Cycles

Steady demand, but Indian supply squeezes lift margins

LAB prices follow benzene and kerosene, with a margin that widens when detergent demand is strong and supply is tight, as in India in early 2026. Detergent demand is steady and grows with population and income, so the cycle comes mainly from feedstock swings and trade measures. The floor is the cash cost of integrated Middle East producers; the ceiling is import parity plus duties in deficit markets like India.

With benzene at about $830-1,140/t in March-April 2026 (Platts, OPIS via benzene tile), benzene alone cost about $280-390 per t of LAB; n-paraffin prices are not public.

Booms and busts

1. 2020

   COVID lifted hygiene and detergent demand while fuel demand fell; global operating rate was about 85%.

   not published here

2. 2024-2025

   Tight supply and strong FMCG demand lifted Indian LAB prices; India imposed anti-dumping duties on Iran and Qatar for 2025-2030.

   not published (TPL reported higher prices)

3. H1 2026

   Energy disruptions and Middle East tensions lifted benzene; India suspended the LAB Quality Control Order from 1 April to 1 July 2026 to ease supply.

   India about $2,805/t (April 2026) falling to about $1,988/t (June 2026) (Procurement Resource)

4. Q3 2026

   Benzene eased and Chinese plants restarted; detergent makers bought cautiously.

   Aug 2026 FOB: China $1,257/t, US $1,413/t, Germany $1,611/t, India $1,704/t, Japan $1,292/t (Procurement Resource)

What drives the cycle

• Benzene and kerosene prices. about 75-85% of cost
• Detergent demand in India, South-East Asia, Africa. growth markets
• Trade measures in India. ADD and QCO change import parity
• Substitution by fatty-alcohol surfactants. liquids and premium products shift to AES

Metrics to track