Economic uncertainty has caused SLES prices to fall in Asia and North America, while they have risen bucking the trend in Europe

       In the first week of February 2025, the global SLES market showed mixed trends due to demand fluctuations and economic uncertainty. Prices in the Asian and North American markets fell, while those in the European market rose slightly.
       In early February 2025, the market price of sodium lauryl ether sulfate (SLES) in China fell after a period of stagnation in the previous week. The decline was mainly influenced by the decline in production costs, mainly due to the simultaneous decline in the price of key raw material ethylene oxide. However, the increase in palm oil prices partly offset the impact of the decline in production costs. On the demand side, fast-moving consumer goods (FMCG) sales volume slightly declined due to economic uncertainty and cautious consumer spending, limiting price support. In addition, weak international demand also added to the downward pressure. Although SLES consumption has weakened, supply remains sufficient, ensuring market stability.
       China’s manufacturing sector also suffered an unexpected contraction in January, reflecting broader economic woes. Market participants attributed the decline to a slowdown in industrial activity and uncertainty over U.S. trade policy. U.S. President Donald Trump’s announcement that a 10% tariff on Chinese imports would go into effect on Feb. 1 has raised concerns about export disruptions that would further impact overseas shipments of chemicals, including SLES.
       Similarly, in North America, SLES market prices fell slightly, continuing last week’s trend. The decline was largely driven by lower ethylene oxide prices, which effectively reduced production costs and put downward pressure on market valuations. However, domestic production slowed slightly as traders sought more cost-effective alternatives due to new tariffs on Chinese imports.
       Despite the price declines, demand in the region remained relatively stable. The personal care and surfactant industries are the main consumers of SLES, and their consumption levels remained stable. However, the market’s purchasing strategy has become more cautious, influenced by weak retail figures. The National Retail Federation (NRF) reported that core retail sales fell 0.9% month-on-month in January, reflecting weak consumer demand and likely impacting home and personal care sales.
       However, the European SLES market remained stable in the first week, but prices began to increase as the month progressed. Despite the decline in ethylene oxide prices, its impact on SLES remained limited due to balanced market conditions. Supply constraints remain, especially due to BASF’s strategic production cuts amid rising energy prices and economic uncertainty, which have led to higher SLES costs.
       On the demand side, purchasing activity in the European market remains stable. Revenues in the consumer fast moving goods and retail sectors are expected to grow moderately in 2025, but fragile consumer confidence and potential external shocks could put pressure on downstream demand.
       According to ChemAnalyst, sodium lauryl ether sulfate (SLES) prices are expected to continue to decline in the coming days, mainly due to ongoing economic uncertainty that continues to weigh on market sentiment. Current macroeconomic concerns have resulted in cautious consumer spending and reduced industrial activity, thereby limiting overall demand for SLES. In addition, market participants expect purchasing activity to remain subdued in the short term as end users adopt a wait-and-see approach amid volatile input costs and weakening downstream consumption.
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Post time: Jun-24-2025