For the Quarter Ending September 2024
North America
In Q3 2024, the Sodium Lauryl Ether Sulphate (SLES) market in North America experienced a significant increase in prices, signalling an improved pricing environment. Several key factors contributed to this rise. Demand for SLES remained moderately steady, bolstered by consistent domestic needs and orders from European and Asian importers. However, purchasing activity was primarily driven by smaller buyers who remained cautious amid economic uncertainty. This careful demand from smaller-scale clients helped stabilize the market, as larger players adopted a more conservative approach in anticipation of potential market shifts.
On the supply side, a notable shortage of domestically produced SLES was reported, largely due to reduced manufacturing activities impacted by hurricanes affecting the region. While manufacturing activity remained steady, it operated at lower levels in September. However, there was a positive development in new orders, and input prices fell to a nine-month low. Coupled with declining interest rates, these factors hint at a possible rebound in manufacturing activity.
In the USA, where the most significant price changes were observed, market trends showed an upward trajectory. Prices recorded an 8% increase from the previous quarter, indicating a sustained positive trend. By the end of the quarter, the price for Sodium Lauryl Ether Sulphate 28% DEL Texas reached USD 894/MT, reflecting the overall optimistic pricing sentiment in the region.
APAC
In Q3 2024, the Sodium Lauryl Ether Sulphate (SLES) market in the APAC region experienced a notable increase in prices, reflecting an overall positive pricing environment. Various factors contributed to this uptrend, including stable feedstock costs, increased global freight rates, and rising demand from the downstream surfactant industry. However, the price of essential feedstock Ethylene Oxide was stable during the same period of time, but its cost pressure remained limited on SLES price. These influences collectively drove market prices upwards. China, in particular, witnessed significant price changes, with a 4% increase from the previous quarter underscored the bullish trend in SLES pricing. The correlation between these price changes and seasonal factors, like warmer temperatures driving higher demand for cleaning products, further supported the price surge. Throughout the quarter, the market maintained a consistent upward trajectory, with a 4% price increase between the first and second half of Q3. As the quarter concluded, the price of Sodium Lauryl Ether Sulphate 70% FOB Nanjing in China reached USD 998/MT, reflecting the overall positive pricing sentiment in the region.
Europe
In Q3 2024, the European Sodium Lauryl Ether Sulfate (SLES) market saw a slight increase in prices, influenced by a mix of factors. While raw material costs fluctuated, their effect on SLES prices was somewhat muted due to a balanced supply-demand dynamic. Demand remained relatively steady, driven by domestic requirements and orders from European and Asian importers, though mainly from smaller buyers who were cautious in their purchasing decisions. On the supply side, production levels were robust, with no significant disruptions reported, which contributed to overall market stability. However, broader economic challenges in the eurozone, such as declining industrial output and reduced factory employment, contrasted with the steady demand in sectors reliant on SLES, particularly surfactants. Germany experienced notable price changes, with a 1% increase from the previous quarter, indicating an improved pricing trend for SLES. Despite average supply levels, supply chain logistics challenges and rising freight rates influenced pricing stability. By the end of the quarter, the price for Sodium Lauryl Ether Sulfate 70% FD Hamburg in Germany reached USD 1276 /MT, reflecting the overall positive sentiment in the region's pricing landscape.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Sodium Lauryl Ether Sulphate (SLES) market has experienced a notable upward trend in pricing. This quarter, prices have surged due to several key factors. Elevated temperatures have increased the demand for surfactants used in cleaning products, driven by more outdoor activities and higher soiling levels. Rising costs for essential feedstocks like Ethylene Oxide have further escalated SLES production expenses.
Geopolitical tensions and supply disruptions in major oil-producing regions have pushed up crude oil prices, impacting SLES derivatives. Additionally, global freight rates and port disruptions have exacerbated supply chain issues, contributing to the bullish market sentiment. In the USA, SLES prices have risen significantly, with a 42% increase from the same quarter last year and a 9% rise from the previous quarter.
Seasonal demand spikes during summer have fueled this trend, with a 7% increase in prices noted in the latter half of the quarter. The latest price for Sodium Lauryl Ether Sulphate 28% FOB New York stands at USD 930/MT, highlighting a strong and positive market environment.
APAC
In Q2 2024, Sodium Lauryl Ether Sulphate (SLES) prices in the APAC region experienced a significant upward trend. This rise was primarily driven by increased demand from the surfactant and detergent sectors, boosted by seasonal factors such as warmer temperatures that spiked the consumption of cleaning products. Additionally, rising raw material costs, particularly Ethylene Oxide, coupled with supply chain disruptions and higher freight rates, further propelled SLES prices upward. Traders, anticipating summer demand, engaged in stockpiling, which tightened supply and intensified price pressures. South Korea saw the most pronounced price changes, with strong demand from agriculture, construction, and tourism sectors contributing to the surge. Year-on-year, SLES prices rose by 25% compared to Q2 2023, while the increase from the previous quarter was 7%. A comparison between the first and second halves of the quarter showed a 4% rise. By the end of the quarter, SLES 28% Ex-Daejeon in South Korea was priced at USD 850/MT, highlighting the bullish market conditions throughout Q2 2024.
Europe
In Q2 2024, the European Sodium Lauryl Ether Sulphate (SLES) market experienced a significant rise in prices, driven by multiple factors. The increase in pricing was largely attributed to heightened demand from the downstream surfactant industry, spurred by rising temperatures and more outdoor activities. Warmer weather resulted in greater soiling, which in turn boosted the need for cleaning products and surfactants. Additionally, a surge in inquiries from the US and other European markets contributed to the upward price trend. Rising feedstock costs, particularly for Ethylene Oxide and crude oil, further escalated production expenses. Global supply chain disruptions, including increased freight rates and logistical issues, exacerbated the situation by tightening supply and driving up prices. In Germany, where price fluctuations were most pronounced, SLES prices increased by about 3% from the previous quarter and 1% from the same quarter last year. By the end of the quarter, SLES 70% FD Hamburg was priced at USD 1320 per metric ton, reflecting a strong market sentiment and a positive pricing environment.
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.
