For the Quarter Ending March 2024
North America
In Q1 2024, the pricing environment for Sodium Lauryl Ether Sulphate (SLES) in North America, particularly in the USA, has been influenced by various factors. Overall, the market has experienced a bearish trend, with prices declining compared to the previous quarter. One significant factor impacting market prices is the cost of feedstock materials, such as Ethylene Oxide and Fatty Alcohol.
The decrease in prices of these feedstocks, driven by declining Ethylene prices, has contributed to the downward movement in SLES prices. Additionally, subdued domestic demand from downstream industries, including surfactant and personal care, has further weighed on prices. Adequate inventories have also played a role in the bearish market sentiment. Furthermore, overseas markets in Europe and Asia have faced sluggish demand due to economic slowdowns and persistent inflation, which has had a spill-over effect on the North American market. The anticipation of sustained high interest rates in the United States has also negatively impacted domestic demand for SLES.
In terms of seasonality, the market has experienced off-season winter demand, which has contributed to the low demand for SLES. The first half of the quarter has seen a decline in prices, while the second half has remained stable. In conclusion, the pricing environment for SLES in North America, specifically in the USA, has been negative in Q1 2024. The market has been influenced by factors such as declining feedstock prices, subdued domestic and overseas demand, and off-season winter demand. The latest quarter-ending price for SLES in the USA was recorded at USD 780/MT of Sodium Lauryl Ether Sulphate 28% DEL Texas.
APAC
In Q1 2024, the Sodium Lauryl Ether Sulphate (SLES) market in the APAC region experienced a significant decrease in prices. This downward trend was influenced by various factors that impacted market dynamics. In particular, there was a decrease in demand from the downstream sectors, leading to a bearish sentiment in the market. Additionally, the ample supply of SLES further contributed to the declining prices. Among the countries in the APAC region, South Korea saw the maximum price changes. The overall trend in South Korea reflected the same decreasing sentiment, with prices dropping by 6% compared to the same quarter last year. Furthermore, there was a 12% decrease in prices from the previous quarter in 2024. Within the quarter itself, the first half saw a 4% decrease in prices compared to the second half. Overall, the pricing environment for SLES in the APAC region during Q1 2024 can be characterized as negative. The market experienced a decline in prices due to low demand and a surplus of supply. The decreasing trend in prices was consistent throughout the quarter, with South Korea being the most affected. As the quarter ended, the price of Sodium Lauryl Ether Sulphate 28% Ex-Daejeon in South Korea stood at USD 770/MT.
Europe
In Q1 2024, the European Sodium Lauryl Ether Sulphate (SLES) market exhibited fluctuations influenced by multiple factors. January saw a decrease in SLES prices, primarily driven by reduced domestic and international demand. The smooth importation process and a global price dip, particularly from China, further accentuated this downtrend. However, in February, prices slightly increased, driven by a 1.3% rise in the cost of feedstock Ethylene Oxide. This increase, combined with heightened freight rates due to the ongoing Red Sea crisis and limited availability of raw materials, contributed to a modest price uptick, despite stable demand from the downstream surfactant industry. March continued to see this upward trend, though the rise was more moderate. The price changes throughout the quarter were significantly impacted by external factors such as geopolitical tensions, which affected freight costs, and anticipated demand rebounds in the surfactant sector. Additionally, economic indicators such as the manufacturing sector's performance in Germany and broader Eurozone market conditions played crucial roles in shaping market sentiments and influencing SLES pricing trends. Overall, the first quarter reflected a complex interplay of supply chain constraints, fluctuating demand levels, and broader economic pressures, which collectively dictated the pricing trajectory of SLES in Europe. The market navigated through these challenges with varying degrees of bullish and bearish trends, underscoring the volatile nature of commodity chemicals influenced by both micro and macroeconomic factors.
For the Quarter Ending December 2023
North America
In the fourth quarter of 2023, the Sodium Lauryl Ether Sulphate (SLES) market in North America underwent a period of mixed influences impacting prices.
Initially, the market experienced a bearish trend driven by the declining costs of feedstock Ethylene Oxide, leading to a consequential decrease in SLES prices. Lacklustre domestic demand and elevated inventories further contributed to the downward price trajectory, a trend mirrored in overseas markets in Europe and Asia, both affected by economic slowdowns and persistent inflationary pressures.
A notable factor influencing market dynamics was the anticipation of sustained high interest rates in the United States, adversely affecting domestic SLES demand. Furthermore, the energy sector experienced a decline, with Crude Oil reaching a level unseen in nearly six months due to abundant supplies and subdued demand. While no plant shutdowns were reported in the region during this quarter, market dynamics were primarily shaped by the aforementioned factors. At the end of this quarter the price of Sodium Lauryl Ether Sulphate 28% DEL Texas in the USA was hovering around USD 679/MT.
Europe
In the fourth quarter of 2023, the European Region Sodium Lauryl Ether Sulphate (SLES) market exhibited a bearish trend, largely driven by subdued demand within the domestic market. Key feedstock Ethylene Oxide maintained stability, but Fatty Alcohol, another critical input, experienced a downturn despite sustained downstream demand. Notably, the depreciation of upstream Palm oil costs was observed, potentially influenced by a decrease in Malaysia's palm oil inventories by the end of December, despite reduced exports and production. The downstream surfactant procurement process faced significant challenges due to weak demand, prompting cautious purchasing strategies among market participants. Traders responded by adjusting their offers, opting for discounted prices to stimulate demand. Moreover, in Germany, the largest economy in Europe, the demand for SLES remained low, reflecting unfavourable economic conditions and reduced purchasing activities. The prevailing market sentiment was pessimistic, resulting in minimal purchases and maintaining minimal inventory levels. Despite the overall high supply of SLES in Europe, certain countries, notably the Netherlands and Belgium, reported relatively low supplies, influencing the broader market dynamics. However, the market was influenced by competitively priced import cargoes from overseas suppliers, providing an alternative source of supply. The combination of weak demand, cautious purchasing, and regional supply variations contributed to the bearish trend in the European SLES market during Q4 2023.
APAC
In the fourth quarter of 2023, Sodium Lauryl Ether Sulphate (SLES) experienced a bearish trend in the APAC region, particularly notable in China. The Chinese SLES market witnessed a decrease in this quarter, driven by sluggish product demand. Ethylene Oxide, a key feedstock, remained stable, while Fatty Alcohol, another crucial feedstock, faced a downturn despite consistent downstream demand. The depreciation of upstream Palm oil costs was observed, potentially influenced by a decline in Malaysia's palm oil inventories by the end of December, despite reduced exports and production. The procurement of downstream surfactants was significantly impacted by weak demand, leading to cautious purchasing strategies. Traders responded by adjusting their offers, leaning towards discounted prices. Moreover, the National Bureau of Statistics of China (NBS) reported a Purchasing Manager Index (PMI) of 49 in December 2023, down from 49.4 the previous month, indicating a slight contraction in China's manufacturing industry. Meanwhile, in South Korea, the stability of SLES prices was influenced by sufficient product supply in the domestic market. Consumption by downstream surfactant and personal care sectors displayed a moderate trend, fostering relatively firm trading activities and maintaining consistent price dynamics for SLES. In contrast to China, the price trend in South Korea depicted stability, primarily linked to sustained demand within the domestic market. The latest reported price for Sodium Lauryl Ether Sulphate 28% Ex-Daejeon in South Korea for Q4 2023 stands at USD 854 per metric ton.
For the Quarter Ending September 2023
North America
Overall, the SLES (Sodium Lauryl Ether Sulphate) market in the USA rebounded compared with the second quarter. The USA market has experienced exponential growth throughout the third quarter on the verge of increased demand from the downstream surfactant and personal care businesses. During July, due to insufficient inventories and sustained demand, sellers responded by raising prices after a period of decline. The supply has been low in the domestic market of the USA as the industries were operating at lower rates due to prolonged stockpiling of the product. The prime reason for the increment in the prices of SLES was attributed to a shortage in the supplies of feedstock Ethylene Oxide due to the implementation of force majeure at Dow Chemical’s Ethylene Oxide manufacturing plant located at Plaquemine, Louisiana which caught fire on July 15, 2023. Following August, the prices of the feedstock Ethylene Oxide increased, contributing to the elevated SLES production costs. Furthermore, as per FRED Economic Data, the Producer Price Index (PPI) increased by 2% in the USA during August from the previous month has further supported the uptrend during September.
Asia
Compared with the second quarter, the SLES (Sodium Lauryl Ether Sulphate) in India remained elevated during the third quarter as the inquiries from the downstream surfactant industry were improved throughout the quarter. During July, the price trajectory for SLES in India displayed a notable upward movement amid increased costs of the base material, Ethylene oxide, coupled with a surge in demand. Further, the downstream surfactant sector exhibited an enhanced volume of inquiries over the same period, contributing to market dynamics. Furthermore, a similar trend was observed in the Indian market, as the price trajectory for upstream Palm oil displayed an upward trajectory during August which further contributed to the surge in prices of SLES during August. Followed by the previous market sentiments, the escalation in feedstock price surged the production cost within the traders. Over time, the demand from the downstream surfactant industry has been high from the domestic market due to the coming festival season which led to the price hike of SLES combined with the increase in feedstock Fatty alcohol and upstream Palm oil during September.
Europe
The SLES (Sodium Lauryl Ether Sulphate) market in Europe exhibited mixed dynamics in the third quarter of 2023, as there were some marginal fluctuations observed during this timeframe. The pricing dynamics of SLES declined during July under the influence of less demand from the downstream surfactant industry. As per the data, the market sentiments were influenced by Germany's economic recession, leading consumers to be cautious about making significant purchases, resulting in only essential need-based purchases being made during this timeframe. However, prices of the SLES gradually increased during August as economic conditions improved with gradually increasing trading activities across the Eurozone and improved purchasing sentiments amongst consumers. Furthermore, the feedstock Benzene and Sulphuric Acid also witnessed an upshift in prices amid increased demand from the domestic market during September. The increment in the upstream Naphtha and Crude oil prices has led to increased production costs for the product, thus supporting the price trend in Germany. The persistent inflation and high interest rates in the European region have caused an impact on the production costs which has further compelled the producers to raise the price of SLES during this timeframe.
For the Quarter Ending June 2023
North America
Throughout the second quarter of the year, Sodium Lauryl Ether Sulphate (SLES) prices witnessed a bearish market situation. The price decline was primarily due to subdued demand, ample availability from the downstream surfactant industry, and adequate inventories in the US market. Further, the feedstock Ethylene Oxide and Fatty alcohol also followed a downward trajectory supporting the SLES trend this quarter. The decrease in the price realization of Ethylene oxide in the domestic market is influenced by several macroeconomic factors, including restrictive interest rates and tightening credit resulting from regional banking turmoil. Furthermore, the upstream Palm oil prices also declined. The primary cause for the situation was the temporary export restrictions imposed on exporting countries, particularly Indonesia, which directly affected the supply of cooking oil within the country. These factors collectively contribute to the observed downward shift of SLES in the US market. Thus, the price of Sodium Lauryl Ether Sulphate 28% FOB New York (USA) was USD 734/MT in April, USD 694/MT in May, and USD 666/MT in June. Additionally, as per ISM data, the manufacturing PMI index has been declining, as 47.1 in April, 46.9 in May, and 46 in June, indicating contraction in the manufacturing sector in the US.
APAC
During Q2, the Sodium Lauryl Ether Sodium (SLES) market has shown a downward trend in Asia-Pacific Region. The price of SLES 70% FOB Busan (South Korea) was USD 1280/MT in April, USD 1240/MT in May and USD 1134/MT in June. The lackluster demand from the downstream surfactant industry, amid ample availability of the product in the market, has caused a slump in the cost of the product in South Korea. Further, the ease in prices was also due to lowered cost of feedstock Ethylene oxide and Fatty alcohol. This downshift was caused by the slowdown in the economy, inflationary pressure, and rising interest rates, which have dampened the purchasing activities of consumers. Upstream Palm oil prices declined in Malaysia in Q2 as the production rates increased, supported by a substantial increase in trading activities. The decline in Plam oil prices has further influenced SLES cost. Furthermore, the reduced demand from the Chinese market has led to a decline in the price across the Asia- Pacific region as consumers made need-based purchases.
Europe
Sodium Lauryl Ether Sulphate (SLES) has shown mixed sentiments during the second Quarter of 2023 in the European market. As the feedstock Ethylene and Fatty Alcohol increased in the initial and mid of the quarter and then declined by the end, SLES followed a similar trend in this time frame. On the demand front, the inquiries from the downstream surfactant industry were stable to weak in the region. However, the cost of the product declined by the end of the quarter due to weak cost support from upstream Palm oil. Furthermore, European businesses were impacted by inflation and higher interest rates, leading to a slowdown in consumer spending amid heightened unemployment fears. Meanwhile, demand from the downstream Surfactant industry remained gloomy amid market uncertainties. The annual inflation rate in the Euro area fell to 5.5% in June 2023 from 6.1% in May 2023, as per Eurostat data, the statistical office of the European Union. Although the inflation rate has reduced from an all-time hike, the rates still remain high, keeping consumers hesitant to buy products.
For the Quarter Ending March 2023
North America
The prices of Sodium Lauryl Ether Sulphate (SLES) have demonstrated mixed market sentiments in the US market. With the global economic slowdown, the demand for Natural Gas has started to decline, easing the input cost pressures on the price realizations of Sodium Lauryl Ether Sulphate (SLES). However, the cost support from upstream was limited as the contrary price trend was observed in Q1. Furthermore, the inquiries from the downstream surfactant and detergent industries were moderate and didn’t support the upshift observed in the offers at the end of the first quarter. The freight charges were on the lower end amid an over-availability of containers at the US ports. Moreover, the financial sector worries amidst the failure of two banks have constrained the market growth of Sodium Lauryl Ether Sulphate (SLES) in Q1-end.
APAC
In the domestic region of China, the prices of Sodium Lauryl Ether Sulphate (SLES) have demonstrated a volatile price trend. After the exemption of COVID-19 restriction in early Q1, the manufacturing activities have started to streamline. The spring festival holidays have further impacted the production and logistics across the nation as a limited workforce was available. With the expansion in the manufacturing sector, the purchasing manager index has also settled above 50 points in mid-Q1. However, the demand from the downstream surfactant and other end-use industries remained moderate as there was already enough material availability to carry out production. On the upstream cost front, the prices of Palm oil also prompted downward pressure on the price realizations of SLES. However, in late Q1, the prices of SLES improved amid the tight availability of feedstock Palm Oil, reported by market participants.
Europe
With the start of the first quarter, ease in input cost inflation was triggered by falling TTF natural gas costs. The production costs have started to decline, alleviating the pressure from the price realization of Sodium Lauryl Ether Sulphate (SLES) in the German market. However, in order to rein the spiraling inflation, which has curbed the purchasing sentiments of end-use industries, the European Central Bank has tightened its monetary policy by increasing its interest rates. Furthermore, the demand from the downstream surfactant and detergent industries didn’t escalate much and remained on the lower end. However, towards the end of the first quarter, the price realizations of SLES have inched higher amid a rise in the market value of upstream Palm oil prices. The supply of raw materials was relatively tight, and the shortage of skilled workforce further compounded the market challenge for Sodium Lauryl Ether Sulphate (SLES) at the end of the first quarter.
For the Quarter Ending December 2022
North America
Throughout the fourth quarter of 2022, the price of SLES in the US steadily decreased, primarily due to a declining upstream palm oil price. SLES was selling for about USD 746/MT at the end of Q4 2022 in the US market. The decline in SLES pricing in the American market was aided by the weak demand from importing nations like Mexico and Canada. The cost of producing SLES in the US was reduced by the increased availability of upstream crude palm oil from Indonesia. Strong supplies of palm from Indonesia and Malaysia were able to easily meet the weak demand from the downstream cosmetic industry during the year-end.
APAC
SLES prices decreased in China during the final quarter of 2022 as a result of a consistent supply of upstream palm oil from Malaysia entering the local market at a reduced rate. Since South Korea imports from China, SLES pricing in South Korea has followed the same pattern as in China. In South Korea, the cost of SLES at the end of Q4 2022 was estimated to be roughly USD 875/MT. SLES's price decline in the Chinese market was aided by the sluggish interest from importing African markets. The Covid-related regulations in China led to bad purchase behavior, which caused the demand to decline steadily throughout the fourth quarter of 2022.
Europe
SLES costs dropped across Europe during the final quarter of 2022. Relatively decreased energy costs drove down the cost of operation for SLES in the European region, along with the strong supply of upstream palm oil from Malaysia to Europe was able to meet the demand from the continent's downstream cosmetic industry. Rising inflation rates resulted in subpar European procurement activity, which decreased demand for SLES across the continent. SLES prices decreased in Europe during Q4 of 2022 due to a scenario of weak demand along with slight improvements in operating rates in Europe due to the easing energy costs.
For the Quarter Ending September 2022
North America
The price of SLES in the US steadily declined throughout the third quarter of 2022, mainly on the back of easing upstream palm oil. The poor demand from importing countries like Mexico and Canada assisted the dropping of SLES prices in the American market. The increased supply of upstream Crude oil from Indonesia eased the production costs of SLES in the US. The price of SLES during the end of Q3 2022 in the US market was recorded at around USD 752/MT. The steady demand from downstream cosmetics industries was easily met with a strong supply of palm from Indonesia and Malaysia.
APAC
The SLES prices in China dropped during the third quarter of 2022 due to a steady supply of upstream palm oil at a lower rate in the domestic market from Malaysia. The weak demand from importing African markets abetted the price drop of SLES in China. Due to poor buying activities owing to the Covid-related restrictions in China, the demand diminished at a steady rate. The prices in South Korea for SLES followed the same trend as China because South Korea imports from China. The cost of SLES during the end of Q3 in South Korea was recorded at around USD 905/MT.
Europe
SLES prices in Europe decreased in the third quarter of 2022. Despite high energy prices raising the operation cost of SLES in the European region, the easing of upstream palm oil due to strong supply from Malaysia and Europe was able to meet the demand from the downstream cosmetic sector in the continent. The rising inflation rates caused weak procurement activities in Europe, reducing the demand for SLES across European countries. Several operation cuts in the downstream cosmetics manufacturing units in Europe due to high energy costs brought down SLES prices in Europe due to a weak demand scenario.
For the Quarter Ending June 2022
North America
Sodium Lauryl Ether Sulphate (SLES) prices increased steadily in the American market throughout the second quarter of 2022. The strong demand from the downstream cosmetic industries assisted the price hike across the entire Q2 in the domestic market. The rising demand for household and industrial cleaners contributed to the increasing price of SLES during Q2 2022 in the US. The high cost of upstream palm oil became the most sought-after food oil after the supply of sunflower seed oil, and soyabean oil was disrupted due to the ongoing war between Russia and Ukraine and floods in South Africa. The surge in palm oil prices drove up the prices of SLES in the US
APAC
In the Indian market, the Sodium Lauryl Ether Sulphate (SLES) prices increased across the second quarter of 2022 owing to the rising prices of its upstream products. The increasing demand for edible oil in the Indian market increased the cost of upstream Palm oil in India. The upstream products like Sulphuric acid, dodecyl alcohol, and Ethylene dioxide increased due to rising crude oil prices in the Indian market. In the Chinese market, the prices of SLES started to drop at the end of Q2 2022 as the upstream petrochemical products prices began to ease on the back of a steady feedstock crude oil supply.
Europe
Sodium Lauryl Ether Sulphate (SLES) prices in the European market surged during the start of the second quarter due to rising operation costs because of high energy prices and soaring upstream palm oil costs on the back of the food oil crisis in Europe. Due to high prices, the price dropped in MAY due to weak market sentiments from the downstream cosmetics and surfactants sectors. Nearing the end of Q2 2022, the SLES prices surged again because of increasing feedstock crude oil prices and a shortage of Palm oil as the leading exporter to Europe; Indonesia banned Palm oil exports driving up the SLES price in Europe.
For the Quarter Ending March 2022
North America
Rise in prices of SLES during the first quarter of 2022 was a common trend in the global trend including the American market, where SLES was traded around USD 750/MT in last month of the first quarter of 2022. The price hike can be traced following the increase in demand of the palm oil from the American market as a food oil because of huge shortage of sunflower seed oil which was imported from Ukraine due the conflict between Russia and Ukraine. The drought in South Africa also brought down the supply of Soyabean oil to the US, which ultimately rose the demand of the palm oil abetting the rising price trend of SLES in the first quarter of 2022.
Asia Pacific
The SLES prices in the Chinese market during the first quarter of 2022 witnessed rise and was traded around USD 1170/MT at the end of first quarter. The rise in the SLES prices was primarily due to the high demand of upstream palm oil owing to limited production and exports from the major palm oil exporting countries like Malaysia and Indonesia. The rest of the Asian market had a SLES price trends which were very similar to that of the Chinese market especially the Indian market where the prices of SLES price was recorded at USD 952/MT during March 2022.
Europe
SLES prices in the European market was steadily increasing throughout the first quarter of 2022 due to the disruption in transportation and high energy prices across Europe on account of the war in Eastern European region between Russia and Ukraine. The imports of upstream palm oil from Malaysia and Indonesia to the European countries were lower than usual owing to the Russia-Ukraine conflict and labor shortage in Malaysian palm fields. Low imports and availability of the upstream palm oil in Europe led to the upward trend of SLES price in Europe in the end of Q1 of 2022. SLES prices in Europe surged by nearly 4% in Q1.
For the Quarter Ending December 2021
North America
The SLES market across the North American region faced the brunt of high price dynamics throughout the fourth quarter of 2021. The record-breaking palm oil prices in the international market coupled with the upward fluctuations in the ethylene and ethylene oxide raw materials forced the manufacturers to go for positive revisions in the offered contracts. The supply tightness in the raw materials on account of delayed deliveries and high freight costs also supported the price escalations. The SLES prices in the USA, which hovered around USD 590/MT FOB New York, registered a smaller growth percentage from November prices with a relax in marine trade movement as well as cooling ethylene oxide raw material prices. However, the continued palm oil tightness and progressive demand outlook in the personal care industry kept the prices buoyed.
Asia
The SLES prices saw an abrupt increase in the price tends during October which continued to surge in November as well, driven by tight raw material supplies. The largest palm oil-producing countries Indonesia and Malaysia struggled in catering to the international demands due to low output, causing the importing countries like China to pay more on imports of feedstock. Other factors like China’s Dual Control Policy restricting the production facilities from operating in full scale exacerbated the SLES supply shortage in the countries causing the prices to skyrocket in November. However, the prices in December, which were ranged between USD 910/MT and USD 1282/MT, slipped on the back of relief in ethylene and ethylene oxide prices and decreased buying tendencies. In India, the prices incessantly rose throughout the quarter due to stronger raw materials in the international market in the initial weeks. This later got overpowered by the strong demand from the soap and detergent downstream industries that hastily started filling their inventories amid the Omicron variant scare causing the prices in India during December to settle at USD 879/MT Ex-Mumbai.
Europe
European market mimicked the USA price trend in the fourth quarter as the prices inched higher in October and gradually gained numbers during November and December. The scarcity in feedstock supplies along with high input costs due to the peaking energy crisis weighed heavily on the manufacturers forcing them to trade the SLES volumes at high prices. The continued bullishness in the SLES market got fueled by the increasing demand from the end-user consumers which widened the gap between supply and demand fundamentals during the resurgence of Coronavirus, eventually causing the prices in Germany to hover around USD 400/MT FOB during December.
