SLS (Sodium Lauryl Sulfate) Price Trend and Forecast

Regional Price Overview

Get the latest insights on price movement and trend analysis of SLS (Sodium Lauryl Sulfate) in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

SLS (Sodium Lauryl Sulfate) Price Trend for the Second Half of 2023

SLS (Sodium Lauryl Sulfate) prices were observed to fluctuate throughout the given period of H2 of 2023 as the price trend followed a mixed trajectory. The third quarter was largely weak and tottered at the lower end of the price curve primarily because of the dull downstream demands.

So, suppliers acquired a wait-and-watch approach and became cautious with supplies this helped in stabilizing the SLS market a little as the price trend plateaued at the beginning of the final quarter. And then began to ascend around the middle of the final quarter. Overall, very mixed market performance was observed.

Analyst Insight

According to Procurement Resource, the SLS price trends are likely to waver again in the coming quarter. The demand outlook doesn’t look very positive for the coming months.

SLS (Sodium Lauryl Sulfate) Price Trend for the First Half of 2023

SLS (Sodium Lauryl Sulfate) prices are majorly driven by the downstream demands from cleaning, personal hygiene, and surfactant industries and the upstream costs. In the Indian domestic market, consumer interest in cleanliness and hygiene increased substantially after the country suffered from a deadly second wave of the Covid 19 pandemic. So, the SLS prices have risen continuously since then. High inflation and increased upstream costs also had a role to play, but the market experienced a surge in prices.

But soon, the prices started stabilizing as the demand normalized. Hence, the inventory stocks increased, causing the SLS prices to plateau and eventually decline during the first half of 2023. The SLS (Sodium Lauryl Sulfate) market prices averaged around 2360 USD/MT (FOB) in the Indian domestic market within the said period.

Analyst insight

According to Procurement Resource, the SLS (Sodium Lauryl Sulfate) prices are expected to continue behaving in a similar manner, given the lowered demand and volatile pricing fundamentals.

Sodium Lauryl Sulfate Price Trend for Second Half of 2022

The prices of sodium lauryl sulfate (SLS) declined in the said period in the Asian- Pacific and European markets. Products similar to sodium lauryl sulfate such as sodium lauryl ether sulphate also saw a declining trend.

The main cause of the price decline was the low-cost supply of palm oil from the exporting nations. The Asian region also showcased reluctant buying sentiments which coupled with the persistent covid restrictions in China kept the price trend of sodium lauryl sulfate (SLS) on the downside. In the European region, the decline was the combined effect of operational cuts, low demand from the cosmetics industry, and high energy production costs.

Similar trend were seen in the US domestic market where the cost of domestic manufacturing was lowered owing to the cheap and abundant supplies from crude palm oil importing nations like Indonesia, Malaysia, and Thailand. Also, the dwindling demand from the importing nations further depressed the global price trend for SLS.

Analyst Insight

Given the current market dynamics the prices of Sodium lauryl sulfate are expected to decrease in the coming months. The low demand from the end-user market industries, fluctuating energy costs, and the recovery of the market from the COVID-19 pandemic will have a major impact on the price dynamics.

Sodium Lauryl Sulfate Price Trend For the First Half of 2022

Asia

With the Indonesian government placing the export ban (28 April 2022) on palm oil, the price of this raw material reached a staggering high. Crude palm oil prices reached an all-time high of 7268 MYR/MT as of June 2022.

This tightened supply of raw materials caused massive disruptions in the market. Due to these shortages, the supply-demand equilibrium of the market shifted, causing an astounding rise in SLS prices globally.

Europe and North America

Owing to the supply chain disruptions in Asian markets, the simultaneous effects also manifested in the European and American counterparts. With the stringent regulatory frameworks imposed by the governments during the pandemic and the rising public sentiment toward personal hygiene, the demand for SLS increased in the market. Amidst the ongoing shortages, the prices are likely to remain strong.

For the Fourth Quarter of 2021

Asia

The palm oil production had been hit in Malaysia due to shortage of foreign labour as the coronavirus cases surged in previous quarters. However, in November the output in Malaysia had improved as compared to the levels at the same time around last year.

The weather conditions of La Nina are likely to continue to impact its production due to heavy rainfall and flooding which can cause prices to remain elevated. Crude palm oil prices hit 1300 USD/MT in November 2021. SLS prices were also impacted.

Europe

The European Union is likely to shift to palm oil alternatives as it recognises the ecological impacts of palm oil production countries like Malaysia and Indonesia causing excessive deforestation. Palm-oil based oils will be completely replaced by other oils by 2030. The imports in Europe were around 6.5 MMT in 2021 which are likely to decline even further in future affecting the downstream industries of Sodium Lauryl Sulfate.

For First, Second and Third Quarters of 2021

Asia

Tight supplies from Malaysia and Indonesia, world’s largest palm oil producing countries drove up the benchmark crude palm oil price futures by 31% to 1252 USD/MT. In the third quarter in Indonesia, the production had dampened due to a poor fertilizer use and maintenance issues. The prices witnessed a jump of 67 USD/MT in July compared to the previous year.

The prices rose as a result of weak supply due to shortage of labour as the coronavirus cases surged in the country. The downstream industries like Sodium Lauryl Sulfate were also impacted by the rise in palm oil prices which increased the raw material cost for its production.

North America

In March 2021, palm oil prices increased to 1110 USD/MT up from 1040 USD/MT and was estimated to continue increasing further.  As a result of this, SLS prices were also affected simultaneously.

For the Year 2020

Asia

In the beginning of the year 2020, palm oil demand had dropped by 5% in May as its demand and export dropped in Malaysia and Indonesia. The WHO advised against the use of palm oil during the surge of coronavirus cases and instead recommended other sources of vegetable oil.

Its prices had plummeted to 9-palm of 3348 USD/MT in November 2020 as a consequence of a global supply deficit while production was affected by unfavourable weather conditions.  Its price volatility in the market also affected the prices of end-use industries like Sodium Lauryl Sulfate.

Europe

Europe is one of the major consumers of palm oil but observed a decline of almost 1-1.5 MMT as a result of disrupted supply-demand fundamentals due to the coronavirus pandemic. Netherlands, Spain, Germany and Italy are some of the major consuming palm oil countries in Europe, but its consumption could not recover until the latter half of the year. The market remained sluggish during most of the year, affecting the prices of downstream industries of Sodium Lauryl Sulfate.

North America

In 2020, the price of coconut oil (CNO) skyrocketed. The price averaged 1,015 USD/MT, up from 731 USD last year, a 39% increase. There was a 35% price range from 834 USD/MT to 1,463 USD/MT.

The price premium of CNO over PKO reduced demand for CNO in the US. In 2020, CNO shipments to the US were 454,401 tonnes, a 3.5 percent decrease from the previous year.

Procurement Resource provides latest prices of SLS (Sodium Lauryl Sulfate). Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.