# Linear alkylbenzene and Surfactants

Linear alkylbenzene exists almost only to be sulphonated into LAS, one of the largest surfactants, so LAB demand is laundry detergent demand. LAB was 60 to 70% of the cost of making LAS acid in 2026, which ties detergent costs to benzene and Gulf supply; India imported over 40% of its LAB in 2022-23 and since June 2025 taxes imports from Iran and Qatar.

Source page: https://www.materialinsights.org/links/linear-alkylbenzene-and-surfactants/

[Linear alkylbenzene](https://www.materialinsights.org/chemicals/lab/) (chemical) and [Surfactants](https://www.materialinsights.org/chemicals/surfactants/) (chemical): 4 relationships.

## How they are linked

### 1. LAB becomes LAS

*Physical flow · Strong · LAB sulphonated into LAS*

LAB's straight carbon chain on a benzene ring is sulphonated to make LAS, the cleaning agent in washing powders, bars and liquids.

- **76.3%** LAS share of the LAB market by application, 2025
- **100%** surfactants share of LAB end use in India, 2022-23
- **32%** LAS share of the global surfactants market, 2014

Almost all LAB goes into LAS, and about 85% of LAS typically goes into household detergents, so the pair moves with laundry demand in emerging markets. LAS was the largest single surfactant in 2014, although oleochemical surfactants from palm and coconut compete with it.

Sources: [IMARC Group](https://www.imarcgroup.com/linear-alkylbenzene-market); [Chemicals and Petrochemicals Manufacturers' Association (CPMA)](https://cpmaindia.com/knowledge-centre/product-group/-surfactants/lab); [Beroe](https://www.beroeinc.com/blog/benzene-or-palm-oil-the-changing-procurement-dynamics-in-the-detergent-market); [Chemical Week](https://chemweek.mydigitalpublication.com/articles/india-driving-lab-demand-growth)

### 2. LAB sets LAS cost

*Cost and price · Strong · LAB price to LAS acid price*

LAB is the main raw material in LAS acid (LABSA), so LAB price changes pass straight into surfactant costs.

- **60 to 70%** LAB share of LABSA production cost, US, 2026
- **15 to 20%** sulphuric acid share of LABSA cost, US, 2026

In the week of 20 March 2026 US LAB rose 4.35% and LABSA 10.68%, as the Strait of Hormuz disruption cut Middle East supply to the US. Detergent makers adjust shelf prices more slowly, which fits the weaker monthly than yearly correlation.

Sources: [ChemAnalyst](https://www.chemanalyst.com/NewsAndDeals/NewsDetails/feedstock-surge-and-supply-shock-drive-double-digit-rise-in-us-labsa-41595)

### 3. Price link: main product

*Cost and price · Strong · Both ways*

Surfactant prices follow LAB costs with a delay, as detergent formulators pass on input changes in contract rounds.

- **0.24** monthly change correlation
- **0.73** 12-month change correlation
- **0.90** fitted elasticity

Monthly moves correlate at only 0.24 with a one-month lag, but yearly moves at 0.73, and the fitted elasticity of 0.90 suggests near full pass-through over time. The surfactants index also contains oleochemical products, which dilutes the monthly link.

Sources: [Material Insights (World Bank, FRED, IMF data)](https://www.materialinsights.org/chemicals/lab/correlation/)

### 4. India imports and duties

*Policy · High in India · India relies on imported LAB*

India's LAB capacity has lagged consumption, so detergent makers depend on imports, and since June 2025 those from Iran and Qatar carry anti-dumping duty.

- **about 700 kt** India LAB consumption, 2022-23
- **about 300 kt** India LAB imports, 2022-23
- **5 years** anti-dumping duty on LAB from Iran and Qatar, from 23 June 2025

Domestic producers are Reliance, IOC, Nirma and Tamil Nadu Petroproducts, which is lifting its plant from 120 to 145 kt/yr. Indian LAB prices rose 8.3% in Delhi NCR in the week the duties began, showing how a duty on the feedstock reaches detergent costs.

Sources: [Chemicals and Petrochemicals Manufacturers' Association (CPMA)](https://cpmaindia.com/knowledge-centre/product-group/-surfactants/lab); [Taxscan](https://www.taxscan.in/top-stories/india-imposes-five-year-add-on-linear-alkyl-benzene-imports-from-iran-and-qatar-1426024); [Tamil Nadu Petroproducts (via Arihant Capital)](https://www.arihantcapital.com/company-information/directors-report/848); [ChemAnalyst](https://www.chemanalyst.com/NewsAndDeals/NewsDetails/lab-prices-fall-in-china-surge-in-india-on-anti-dumping-duties-europe-remains-37853)

## For investors

### Key learnings

1. LAB is a captive input: nearly all of it becomes LAS, so its volume follows detergent sales rather than the industrial cycle.
2. LAB made up 60 to 70% of LAS acid cost in 2026, so benzene and Gulf supply shocks reach detergent makers quickly, within a week in March 2026.
3. India's 2025 to 2030 duties on LAB from Iran and Qatar favour domestic LAB makers at the cost of higher inputs for LAS and detergent producers.

### What to track

- **LAB price, Gulf export against India domestic**: The gap shows the effect of duties and freight (Weekly · ChemAnalyst, ICIS)
- **Benzene and kerosene prices**: Feed cost for LAB (Weekly · Platts)
- **India LAB imports by origin**: Shift away from Iran and Qatar after the duties (Monthly · DGCI&S)

## For policymakers

### Key learnings

1. Detergents are a mass household good, so duties on LAB raise costs for a large user base; reviews should weigh user industries as well as LAB makers.
2. Imports were about 43% of consumption in 2022-23 and the TPL expansion adds only 25 kt/yr, so cutting reliance needs larger new units.
3. Saudi Arabia and Qatar supplied about half of the Indian subcontinent's imports in 2020, and the 2026 Hormuz disruption to Gulf supply showed that concentration risk.

### What to track

- **Domestic LAB capacity additions**: Reduces import reliance (Annual · company reports, CPMA)
- **Detergent prices in the CPI**: Pass-through of LAB costs to households (Monthly · MoSPI)

## India

India consumed about 700 kt of LAB in 2022-23 and imported about 300 kt of it; the Indian subcontinent was forecast to provide about 47% of world LAB demand growth over 2020 to 2025.

## Sources

1. [Linear alkylbenzene (LAB) market report 2025-2033](https://www.imarcgroup.com/linear-alkylbenzene-market), IMARC Group (2025)
2. [Linear alkyl benzene: product profile](https://cpmaindia.com/knowledge-centre/product-group/-surfactants/lab), Chemicals and Petrochemicals Manufacturers' Association (CPMA)
3. [Benzene or palm oil? The changing procurement dynamics in the detergent market](https://www.beroeinc.com/blog/benzene-or-palm-oil-the-changing-procurement-dynamics-in-the-detergent-market), Beroe (2014)
4. [India driving LAB demand growth](https://chemweek.mydigitalpublication.com/articles/india-driving-lab-demand-growth), Chemical Week (2023)
5. [Feedstock surge and supply shock drive double-digit rise in US LABSA prices](https://www.chemanalyst.com/NewsAndDeals/NewsDetails/feedstock-surge-and-supply-shock-drive-double-digit-rise-in-us-labsa-41595), ChemAnalyst (2026)
6. [Price correlation, Material Insights](https://www.materialinsights.org/chemicals/lab/correlation/), Material Insights (World Bank, FRED, IMF data)
7. [India imposes five-year ADD on linear alkyl benzene imports from Iran and Qatar](https://www.taxscan.in/top-stories/india-imposes-five-year-add-on-linear-alkyl-benzene-imports-from-iran-and-qatar-1426024), Taxscan (2025)
8. [Tamil Nadu Petroproducts: Directors' report](https://www.arihantcapital.com/company-information/directors-report/848), Tamil Nadu Petroproducts (via Arihant Capital) (2025)
9. [LAB prices fall in China, surge in India on anti-dumping duties](https://www.chemanalyst.com/NewsAndDeals/NewsDetails/lab-prices-fall-in-china-surge-in-india-on-anti-dumping-duties-europe-remains-37853), ChemAnalyst (2025)