Sodium lauryl ether sulfate prices have been falling since December last year due to tight supplies and the pre-Spring Festival sell-off, but prices suddenly jumped in the week ending January 21. According to chemical database ChemAnalyst, which is affected by market economic changes caused by the recent fall in the U.S. dollar, contract prices for SLES 28% and 70% jumped 17% and 5%, respectively, in the week ending last Friday.
       The demand for sodium lauryl ether sulfate in the detergent and personal care industry has increased sharply, driven by the upcoming Chinese New Year and the positive impact of the Beijing Olympic Games in the first week of February. Since stocks cannot meet the rapidly growing demand, sodium lauryl ether sulfate producers are purchasing more raw materials to increase production. However, raw material prices in the spot market have risen sharply due to supply shortages and a weaker dollar.
       Rising ethylene and ethylene oxide feedstock futures prices, as well as continued volatility in international palm oil feedstock prices, have contributed to the feedstock shortage. The feedstock shortage has led to a significant drop in capacity utilisation and a significant drop in production volumes. In addition to restrictions on the suspension of most Chinese ports in line with the “zero COVID” policy, the depreciation of the US dollar has pushed up the cost of feedstock, making procurement extremely difficult. On Thursday, the dollar fell to a two-month low of 94.81 against six major currencies amid tighter US monetary policy. As a result, traders converted the strengthening of commodity sentiment into a sharp rise in the price of sodium lauryl ether sulfate.
       According to ChemAnalyst, sodium lauryl ether sulfate prices are expected to remain stable in the short term, as muted production trends and spot market activity in the first half of February are expected to limit price increases. The expected rise in the value of the US dollar during this time may stabilize the raw material market and eventually resolve the supply shortage in the downstream market.
       Sodium Lauryl Ether Sulfate (SLES) Market Analysis: Industry Market Size, Plant Capacity, Production, Operation Efficiency, Supply and Demand, End User Industry, Sales Channel, Regional Demand, Company Share, Manufacturing Process, 2015-2032
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