In June, Sodium Lauryl Ether Sulphate (SLES) saw a declining price trend in the US. The price contract can be seen due to sluggish demand from the downstream industries, such as surfactant and personal care industries. In addition, the surplus product availability in the market has declined the product prices. Further, upstream Ethylene Oxide and Palm oil prices have followed a downward trend which supported the ease in prices of SLES.

The price of SLES 28% FOB New York (USA) has declined by 4% to reach USD 666/MT this month, and upstream Ethylene oxide has also decreased by 3% in the US. Inflation and increased interest rates have affected the market dynamics as buyers are cautious about purchasing. The manufacturing PMI index in the USA, as per the Institute of Supply Management (ISM) has decreased to 46% in June 2023 from 46.9% in May 2023, which indicated a decline of 0.9% which indicates contraction in the manufacturing sector of the US for the past seven months.

The European market has also witnessed a slump in the prices of SLES amid recession and geopolitical tensions. Demand for HDPE from downstream industries has reduced as consumers are reluctant to make bulk purchases due to the recession. Additionally, a plant shutdown was reported as the BASF Ethylene Oxide plant was shut down in June 2023 for a maintenance turnaround. The plant is located in Ludwigshafen in, Germany, and has a plant capacity of 345,000 mt/year.

The Asian market, which is a major consumer of SLES for surfactant and personal care products, has also shown weaker demand this month. The price of SLES 70% FOB Nanjing in China fell by 8% this month amid lackluster demand from downstream industries in the domestic market. Also, the price decline in India for SLES 28% Ex-Mumbai was about 4% in June. The slowdown in the economy and weaker purchasing activities in the Chinese market has impacted the price of SLES in the Asian region.

As per ChemAnalyst, the price of SLES is expected to show fluctuations in the third quarter as the demand from the downstream industry in the US market is expected to be fluctuating over the quarter. The prices are anticipated to increase in July but might decline by the end of the quarter. A similar price trend can be observed in the Asian market, as the price may increase in July due to increased demand from the Chinese market for downstream industries of SLES. Upstream Ethylene oxide prices are also expected to rise, which might strengthen SLES prices.