In order to maintain a domestic supply of upstream palm oil during the approaching months, Indonesia has halted half of its export licenses as the country's religious holidays draw near. Malaysia said it would consider retaliatory measures, such as export cuts, to reduce the number of palm oil, an upstream of Sodium Lauryl Ether Sulphate (SLES), exported to the EU if they move forward with the deforestation bill. The EU is getting closer to passing a new deforestation law that restricts the import of items from areas at risk of deforestation, hence intends to reduce deforestation globally. Last month, the EU environment committee opened the path for a vote on the issue that will take place in future months. The slow but steady demand rise from the European cosmetic sector has increased demand for SLES in European markets. A temporary ban on products linked to deforestation by the EU may prevent future shipments of palm oil, an upstream of SLES, from the two exporting Asian nations. These factors are raising the cost of SLES in the European markets.

A joint committee from Indonesia and Malaysia is traveling to Europe to acquire additional data and give their opinions on the bloc's future strategy regarding the commodity to ensure a steady flow of the upstream of SLES. The rising demand for cosmetics during this trade complication will further pressure the prices of SLES in Europe.

According to ChemAnalyst, The price of SLES in the European region will continue to improve as the performance of the cosmetic sector is likely to continue to increase along with the increasing cost of upstream palm oil. The decision, which will be taken during the upcoming weeks during a meeting between officials from Indonesia and Malaysia to send a trade mission to the EU to express their worries about the new deforestation law, will determine the magnitude of the price increase of SLES in Europe.