LAB prices fall sharply on account of diminishing international Benzene prices – 4 Dec 2014

RIL and Nirma pvt ltd revised their LAB price On 1st December2014, both producers decreased their prices by Rs 8 per kg to Rs 108.10 per kg and Rs 108 per kg respectively. The reason assimilated by indianpetrochem.com for this change was that the demand for linear alkyl benzene has slowed down in Indian market. Indianpetrochem also gathered that demand is not likely to go up untill the price of benzene stabilizes in the Indian market.

Current booking price is in the range of $1400-1450/MT. Booking price of LAB declined by more than 100 dollar/MT in last few weeks. Domestic as well as imported LAB is being traded at huge discounts.

Analyzing the Benzene price movements which is the primary feedstock for LAB, during the last two months, we can clearly notice a steep fall. In fact, Benzene prices have declined by more than 25% in the international market during the same period. In South Korea Benzene price declined by 25% in last two month, while in US Gulf coast it is decreased by 24.4% and in Rotterdam it is decreased by 34%.

Traders in the market are expecting a rise in demand only after Feb-2015, with ensuing of summer season as demand of LAB is generally high on the arrival of summer season. and therefore, producers as well as importers have cut their inventory for LAB by more than 70%.

Domestic producers of Benzene RIL and IOC dwindle their Benzene price by 15.6% and 13.7% respectively over the previous two months. The reason of price decline in Benzene is the crumbling crude oil price in the International market.

A source quoted the prevailing imported price of LAB asRs.103 per kg.