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

Analysis: India Linear Alkyl Benzene Imports in 2012

India Imported 132500 MT of Linear Alkyl Benzene

(January to September 2012)

As per the data study and data analysis of LAB

INDIA imported LAB of around 1,32,500 MT that means on an average of 14,723 MT of LAB per month. But in actual imports go like this as shown in fig below:-

Months	LAB imported in INDIA 2012 (MT)
January’12	10200
February’12	13500
March’12	15200
April’12	10000
May’12	21100
June’12	9500
July,12	17200
August’12	12300
September’12	23500
TOTAL	132500

Q. What about the statistics of LAB imports in INDIA last year at same time period i.e. January to September 2011?

India imported around 102500 MT of Linear Alkyl Benzene in the same period last year.

In 2012 till Sep India imports 29.26% of more Linear Alkyl Benzene than the last year’s imports in same time same period. 

Compared to last month i.e. August 2012, import of the country has jumped up by 90.88% in the month of September 2012.

Indian Linear Alkyl Benzene import has increased by 47% in September 2012 as compared to same period last year i.e. September 2011.

P.S. -  I appreciate your comments and feedback.  

PLANTS : Linear Alkyl Benzene in INDIA

INDIA ONE OF THE LARGEST MANUFACTURER OF LAB IN THE WORLD

In the Indian LAB market, there are four major producers of LAB in India, namely Reliance group, Indian Oil Corporation, Tamil Nadu Petro Products and Nirma.

India is reeling under over supply of LAB, as the domestic demand is comparatively lower than the domestic capacity and production. The total domestic demand is estimated at around 300000 TPA, while the capacity is close to 500000 TPA. The players are exporting their surplus to ensure higher capacity utilization.

Reliance Industries is the largest player in the Indian LAB sector with dominant share of the capacity amounting to 185000 tonne per annum. RIL is also the 5^th largest producer of LAB in world.

IOC has established world's largest single-train LAB plant in Baroda with an installed capacity of 120000 TPA in August 2004.

Tamil Nadu Petroproducts has LAB capacity of 120000 TPA. 

Nirma follows it with installed capacity of 75000 tonne. Of these, Nirma uses substantial portion of its production for captive use in production of detergents.

During the month of September 2012, India imported approx. 23500 MT of Linear Alkyl Benzene which is  a very huge quantity in-spite-of having the excess production of the LAB in the country.

Can anyone know the reason behind the imports??

News: Benzene worth Rs 33 crore seized by DRI

Press Trust of India - November 20, 2012

Directorate of Revenue Intelligence (DRI) has seized Linear Alkyl Benzene worth Rs 33 crore at Mundra port after a city-based trader allegedly misdeclared its country of origin, officials said.

"A consignment of 3,233 metric tonnes of LAB has been seized at Mundra port. A local trader, who imported it, had misdeclared the country of origin," a DRI official said.

As per the bills, the chemical which is used in the detergent industry, was declared to have been imported from Dubai. However, upon verification, it was found to have been brought from Iran, the official said.

The chemical was meant to be supplied to the industry in Gujarat as well as in other states.

Further investigations are underway.