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

News: Iran exempts select polymers, aromatics from export ban

07 November 2012 Source: ICIS

SINGAPORE (ICIS) - Iran has announced on Wednesday the exemption of certain petrochemicals like polyethylene (PE) from its proposed export ban, a source from state-owned Petrochemical Commercial Co (PCC) said.

Polyvinyl chloride (PVC), styrene monomer (SM), benzene, caustic soda, melamine and linear alkyl benzene (LAB) will also be taken out of the list of commodities on which the ban will apply, the source said, citing an official announcement from the Iran government on 7 November.

“It doesn’t make sense that PE exports are banned. We are a major seller to Asia. Our market share will be severely affected if the ban continues,” the PCC source said.

A UAE-based polymer trader said: “We have just received the news as well. So, now it is a matter of time when the [Iranian] customs will resume the clearance of the exports again.”

Author: Ong Sheau Ling

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.