Global SLES Market Exhibits Mixed Trend in August 2024, Amidst Fluctuating Demand And Supply Shortages

The global Sodium Lauryl Ether Sulphate (SLES) market prevailed diverse trend throughout August 2024. The prices increased in the Asian market however kept fluctuating at a downward side in the North American market. The decline in the U.S. market is mainly due to weakened demand from both domestic and international markets in the downstream personal care and surfactant industries. On the other hand, the prices of SLES surged by a significant margin throughout August 2024.  In the Asian market amidst supply shortage and moderately paced demand.

In the North American market, the price of SLES has shown variability but has largely been on a downward trajectory. This decline can be attributed to a combination of factors, with the most significant being the weakened demand for SLES from both domestic and international markets in the downstream surfactant and personal care industries. A reduction in consumer spending, influenced by broader economic uncertainties and shifting market dynamics, has led to decreased orders from these sectors. Additionally, insights from market participants reveal that net sales of surfactants for the second quarter reached $379.8 million, marking a 3% decrease compared to the same period in the previous year. This contraction reflects not only the softer demand but also the impact of competitive pricing strategies and a less favorable sales mix, which have further exerted downward pressure on SLES prices.

Additionally, the ongoing global economic downturn has further contributed to the decline in SLES prices by dampening future energy demand from both households and industrial sectors. Major economies such as the United States and China, which are the largest and second-largest economies globally, are currently facing challenges including high interest rates, substantial inflation, and elevated unemployment rates. These economic conditions suggest a broader economic malaise that could potentially impact both developed and developing nations over time.

On the other hand, SLES prices surged in the Asian market with India being the most affected region. This surge in price is primarily attributed to supply shortages of imported SLES in the Indian market. Insights gathered from various sources suggest persistent trade uncertainties coupled with port congestions in the Asian market have further worsened the supply situation. The active containership fleet remains significantly constrained by ongoing port congestion. Furthermore, many vessels have been diverted to the Cape route, and there has been a rise in the number of ships in drydock. These factors have further strained shipping capacity. Compounding the situation, tropical storms in the region have caused additional transportation disruptions, exacerbated the supply challenges and led to shortage of various commodities including SLES. Further, the demand for SLES has also remained modest in the Indian market from the downstream cosmetics and haircare industry driven by forthcoming festive season demand.

According to ChemAnalyst, SLES prices are expected to increase in the coming months due to shortages of raw materials and a surge in demand.