LAB : Market Outlook

Most LAB and LAS makers expected demand to strengthen only in the second quarter of 2013, as no one could foresee a recovery in the global economy in the first quarter.

However, some LAB producers in Asia and the Middle East said buying activity could pick up in the first quarter, when Chinese buyers re-enter the market to restock after the Lunar New Year holiday on 11-15 February. Movements in the China market typically have a ripple effect on other Asian markets.

On the margins front, however, there was considerable uncertainty, as the direction of upstream prices was difficult to predict, LAB suppliers said.

Industry sources said demand for LAB in the Asian and Middle East markets was expected to rise by 3-5% in 2013 from 2012 levels. Current demand for LAB in Asia is estimated at 1.4m tonnes/year, while the combined consumption in the Middle East and North Africa is said to be above 4,00,000 tonnes/year according to industry sources.

Source: ICIS