The Sodium Lauryl Ether Sulphate (SLES) prices in the United States found an uptick of 1% during September 2023, predominantly attributed to an increase in demand from various downstream sectors, particularly the personal care products and surfactants industries. The escalation in demand significantly exceeded the available supply, resulting in a substantial price hike. Further, the rising costs of the essential feedstock materials served to support the upward movement of SLES prices in the American market. The Asian market has also followed a similar trend as the product price surged amid rising feedstock Ethylene oxide and Fatty Alcohol costs along with raised demand from the regional market, particularly India and China.

In the United States, the domestic market displayed robust demand for SLES, primarily within the surfactant industry, along with overseas demand for the product from Asian markets such as India and China, which has prompted traders to increase the price of the product. During the month, the supply of SLES was moderately low in the region amidst the surging demand, which further supported the price trend. Another factor that contributed to this price escalation was the surging cost of feedstock material Ethylene Oxide as it witnessed a significant rise of 6% during this month due to the upward trend in Ethylene prices within the United States, which in turn has added to the overall increased production costs for SLES. In addition to this, another essential feedstock material, Fatty Alcohol, also underwent an upward shift in its price of 2%  amid increasing downstream demand from the regional market. However, the price trajectory of upstream Palm oil displayed a distinct declining pattern, primarily influenced by a drop in Malaysian Palm oil prices, which was driven by weakened competition from other oils in the market and an increase in production from South Peninsular Palm oil mills, which resulted in abundant inventories.

The Asian market has also experienced a surge in the SLES prices during September 2023, backed by the rising feedstocks Ethylene Oxide and Fatty Alcohol prices. The SLES 70% FOB Nanjing prices in China increased by 4%, while Indian SLES 28% Ex-Mumbai prices saw an increment of 5% during this month. The demand escalated on account of the festival season in the region, which has caused the traders to raise the product costs in the region.

According to ChemAnalyst, it is anticipated that the SLES prices in the US and Asian markets will continue to experience an increase during October and November 2023 on account of the expected rising price trends of the feedstocks Ethylene Oxide and Fatty Alcohol. The heightened demand from the downstream surfactant sector will likely exert upward pressure on product prices during this period. However, during December 2023, there is a possibility that SLES prices could see a decline, which can be linked to a seasonal reduction in demand for SLES, combined with the expected decrease in feedstock prices, marking a shift in the market dynamics.