For the Quarter Ending September 2024
North America
The North American Sodium Coco-Sulfate market experienced a predominantly bullish trend in the third quarter of 2024, largely due to higher-priced imports impacting the local market. The increased production costs for Sodium Coco-Sulfate were primarily driven by a significant surge in coconut oil prices, which rose by over 13% in Southeast Asia. This price hike was exacerbated by a scarcity of coconuts resulting from the El Niño weather pattern, which disrupted coconut production and created material shortages that directly affected coconut oil availability. The scarcity of coconuts, as the primary input for coconut oil production, resulted in a pronounced supply shock that resonated throughout global markets, including North America.
Additionally, consumer spending in the U.S. saw a modest increase of 0.2% in August, according to the American Chemistry Council. This uptick, primarily driven by greater spending on services, indicated a potential rise in demand for Sodium Coco-Sulfate, especially in consumer goods.
Further complicating the supply situation were the disruptions caused by Hurricane Helene, a Category 4 storm that significantly impacted logistics and supply chains in the southeastern United States. The combination of these factors led to heightened prices and a bullish market environment for Sodium Coco-Sulfate during this quarter.
APAC
The Asian Sodium Coco Sulfate market experienced a price inflation of approximately 5% in the third quarter of 2024. This increase was primarily driven by rising feedstock costs, particularly Coconut Oil, which surged by about 5% towards the end of the quarter. Notably, Coconut Oil prices had increased by approximately 13% due to reported shortages of coconuts amid strong demand, resulting in a sustained upward trend throughout September 2024. Several factors contributed to this price surge. The El Niño weather pattern significantly disrupted coconut production, leading to material shortages that directly impacted coconut oil availability. Given that coconuts are the primary input for coconut oil production, this supply shock was particularly impactful. On the demand side, the soap and detergent sectors exhibited moderate performance in the early part of the quarter. However, as the quarter progressed, sales rebounded significantly, driven by improved consumer sentiment linked to the upcoming festive season. This resurgence in demand further bolstered the pricing of Sodium Coco Sulfate, reflecting the interconnectedness of seasonal consumer behavior and production challenges. Overall, the combination of supply constraints and revitalized demand contributed to the upward pricing trajectory of Sodium Coco Sulfate during this period.
Europe
The European Sodium Coco-Sulfate market experienced a predominantly bullish trend in the third quarter of 2024, largely due to higher-priced imports impacting the local market. The increased production costs for Sodium Coco-Sulfate were primarily driven by a significant surge in coconut oil prices, which rose by over 13% in Southeast Asia. This price hike was exacerbated by a scarcity of coconuts resulting from the El Niño weather pattern, which disrupted coconut production and created material shortages that directly affected coconut oil availability. The scarcity of coconuts, as the primary input for coconut oil production, resulted in a pronounced supply shock that resonated throughout global markets, including in Europe. Compounding these supply issues were delays in shipments resulting from ongoing crises in the Red Sea, which affected shipping routes and led to longer lead times for deliveries. Such logistical challenges further exacerbated the strain on the supply chain, making it difficult for European markets to replenish inventories promptly In Europe, the market typically experiences a downturn in demand following the summer vacations, but this year the recovery has been particularly sluggish. Many suppliers opted to stockpile inventories in anticipation of increased demand during the festive quarter, which often sees heightened transactions in preparation for seasonal sales.
