CAS NO 56353-15-2 N-ACETYL-CARNOSINE,CAS NO 24587-37-9 VAL-TRP，PHE-PHE used in pharmaceutical industry,PHE-PHE CAS NO 2577-40-4 Ronas Chemicals Ind. Co.,Ltd. , https://www.ronaschemical-cn.com
The global linear alkyl benzene (LAB) market has been facing an oversupply situation due to weak demand and the continuous expansion of new production capacities. Petrosa, the world's largest LAB supplier, highlighted that the launch of new LAB units in Saudi Arabia and Qatar in 2006 will push the global operating rate of LAB plants below 80%, a low level expected to persist for at least five years. This overcapacity is creating pressure on prices and margins across the industry.
LAB is a key aromatic raw material used primarily in the production of linear alkyl benzene sulfonates (LAS), which serve as the main component in both domestic and industrial detergents. Traditionally, LAB was produced by alkylating C10-C14 alkanes or halogenated hydrocarbons with benzene using corrosive catalysts like HF or AlCl3. However, recent advancements have introduced more environmentally friendly methods. UOP’s 'Detal' technology, which uses solid acid catalysts, has become the dominant process in modern LAB production.
According to Colin A. New York, president of Houston & Associates, global LAB capacity reached 3.407 million tons in 2005. Regional breakdown included 1.54 million tons in Asia-Pacific, 526,000 tons in North America, 348,000 tons in Latin America, 590,000 tons in Western Europe, 50,000 tons in Eastern Europe, and 353,000 tons in the Middle East/Africa. The Middle East and Africa region saw a significant increase in capacity in 2006, reaching 523,000 tons annually. The rise in new capacity is expected to exacerbate the oversupply issue, with current global operating rates hovering between 80% and 82%.
In 2005, rising raw material costs led to a sharp increase in LAB prices. US contract prices in the fourth quarter reached $1,320–$1,540 per ton (DEL), while European prices climbed to €1,030–€1,100 per ton. In Asia, prices surged to $1,175–$1,250 per ton. These price hikes, however, dampened consumer demand. Global LAB demand grew by only 2% to 2.487 million tons in 2005, with most regions in the Western Hemisphere experiencing a decline of around 3%. Asia was the sole region where demand increased.
Industry experts suggest that as long as oil prices remain high, LAB demand growth will likely stay around 2% annually. Meanwhile, the combination of oversupply and rising production costs has severely compressed profit margins. This is pushing manufacturers to restructure their operations, with smaller facilities potentially shutting down. Leading producer Sasol from South Africa recently announced the sale of its olefin and surfactant business, including LAB assets.
Huntsman also noted that in this challenging environment, LAB producers are being forced to innovate. The company is considering upgrading its facility in Chocolate Bayou, Texas, to diversify its product range beyond traditional cleaning agents. This shift reflects a broader trend toward flexibility and adaptation in the face of market volatility.