Due to the weak market demand and the successive production of new production capacity, the global market for the linear benzene (LAB) market has been oversupply. Petrosa, the world’s largest LAB supplier, said that the start-up of new LAB units in Saudi Arabia and Qatar in 2006 will bring the operating rate of global LAB plants below 80%, and the low operating rate will continue for 5 years.
LAB is an important aromatic organic chemical raw material. Almost all LABs are made into sulfonated linear alkyl benzene sulfonates (LAS). LAS has become the main raw material for domestic and industrial detergents. The traditional LAB is mainly made by alkylating C10-C14 alkanes (or halogenated hydrocarbons) with benzene using HF or AlCl3 corrosive catalysts. In recent years, UOP has developed the 'Detal' technology using solid acid as the catalyst, and has become the main method for LAB production.
Colin A. New York. According to president of Houston & Associates, the global LAB capacity reached 3.407 million tons in 2005, including 1.54 million tons in Asia Pacific, 526,000 tons in North America, 348,000 tons in Latin America, and 590,000 tons in Western Europe. / Year, Eastern Europe 50,000 tons / year, Middle East / Africa 353,000 tons / year. In 2006, LAB production capacity in the Middle East/Africa region will increase significantly to 523,000 tons/year. He pointed out that the mass production of new production capacity will increase the oversupply situation in the global LAB market. Currently, the operating rate of LAB devices in the world is only maintained at a low level of 80% to 82%.
According to the manufacturer, the straight rise in raw material prices last year has prompted a significant increase in LAB prices. US LAB contract prices in the fourth quarter of 2005 have risen to US$1,320 to US$1,540 per ton (DEL), and European contract prices in 2005 have also risen to From 1030 euros to 1100 euros/tonne (DEL), Asia increased to 1175 to 1250 US dollars/ton. The sharp increase in prices has weakened consumer demand. Last year, global LAB market demand increased by only about 2% to 2.487 million tons per year, while demand in most parts of the western hemisphere dropped by 3%. People in the industry pointed out that Asia is the only region in 2005 where demand has increased. As long as the oil price is still high, the LAB market demand growth can only be maintained at an average annual level of about 2%.
Manufacturers pointed out that oversupply and soaring costs have caused RAW production margins to drop sharply. This will prompt further restructuring of the global LAB business and some small-scale devices will be forced to close. The world's leading LAB producer, South Africa Sasol, has announced the sale of its olefin and surfactant business, including LAB assets. Huntsman pointed out that in this severe situation, LAB producers will be forced to innovate existing production facilities. The company is considering innovating its manufacturing facility in Chocolate Bayou, Texas, to diversify its products, not just produce cleaners.
LAB is an important aromatic organic chemical raw material. Almost all LABs are made into sulfonated linear alkyl benzene sulfonates (LAS). LAS has become the main raw material for domestic and industrial detergents. The traditional LAB is mainly made by alkylating C10-C14 alkanes (or halogenated hydrocarbons) with benzene using HF or AlCl3 corrosive catalysts. In recent years, UOP has developed the 'Detal' technology using solid acid as the catalyst, and has become the main method for LAB production.
Colin A. New York. According to president of Houston & Associates, the global LAB capacity reached 3.407 million tons in 2005, including 1.54 million tons in Asia Pacific, 526,000 tons in North America, 348,000 tons in Latin America, and 590,000 tons in Western Europe. / Year, Eastern Europe 50,000 tons / year, Middle East / Africa 353,000 tons / year. In 2006, LAB production capacity in the Middle East/Africa region will increase significantly to 523,000 tons/year. He pointed out that the mass production of new production capacity will increase the oversupply situation in the global LAB market. Currently, the operating rate of LAB devices in the world is only maintained at a low level of 80% to 82%.
According to the manufacturer, the straight rise in raw material prices last year has prompted a significant increase in LAB prices. US LAB contract prices in the fourth quarter of 2005 have risen to US$1,320 to US$1,540 per ton (DEL), and European contract prices in 2005 have also risen to From 1030 euros to 1100 euros/tonne (DEL), Asia increased to 1175 to 1250 US dollars/ton. The sharp increase in prices has weakened consumer demand. Last year, global LAB market demand increased by only about 2% to 2.487 million tons per year, while demand in most parts of the western hemisphere dropped by 3%. People in the industry pointed out that Asia is the only region in 2005 where demand has increased. As long as the oil price is still high, the LAB market demand growth can only be maintained at an average annual level of about 2%.
Manufacturers pointed out that oversupply and soaring costs have caused RAW production margins to drop sharply. This will prompt further restructuring of the global LAB business and some small-scale devices will be forced to close. The world's leading LAB producer, South Africa Sasol, has announced the sale of its olefin and surfactant business, including LAB assets. Huntsman pointed out that in this severe situation, LAB producers will be forced to innovate existing production facilities. The company is considering innovating its manufacturing facility in Chocolate Bayou, Texas, to diversify its products, not just produce cleaners.