TDAE prices in India rose 1.48% in May 2026, driven by crude oil-linked feedstock inflation and tightening import availability following the Strait of Hormuz closure. India's seaborne crude imports fell sharply as refinery throughputs contracted globally, reducing heavy distillate availability for TDAE production. Steady tire sector demand, underpinned by rising vehicle production and 60% replacement-driven consumption, supported the price gain despite elevated freight and insurance costs.
Treated Distillate Aromatic Extract (TDAE) prices in India are anticipated to remain firm and extend gains into June 2026, as residual supply chain disruptions from the Strait of Hormuz closure, elevated war-risk freight premiums, and sustained crude oil-linked feedstock inflation continue to underpin the cost floor for imported process oils. Against this backdrop, TDAE prices in India rose 1.48% in May 2026, supported by firming crude oil-linked feedstock costs, tightening import availability from Middle Eastern supply origins, and sustained demand from the country's robust tire manufacturing sector. The moderate but meaningful monthly gain for TDAE reflects a market navigating the twin pressures of elevated upstream energy costs and geopolitical supply chain disruption, even as domestic downstream buyers exercised cost discipline amid a complex macroeconomic environment.
On the supply side for TDAE, the ongoing US-Iran conflict and the effective closure of the Strait of Hormuz since late February 2026 significantly disrupted TDAE import logistics into India, which depends heavily on Middle Eastern and Asian origins for process oil supply. Brent crude prices surged past $110 per barrel as tensions around the Strait of Hormuz escalated, tightening global supply chains and sharply increasing India's import bill for crude-linked petrochemicals. India's seaborne crude imports fell by approximately 760,000 barrels per day between February and April 2026 as refinery runs contracted in response to feedstock availability constraints and elevated freight costs. This compression of refinery throughput at key regional producing facilities constrained the availability of heavy distillate fractions used in TDAE production, reducing prompt cargo availability and elevating landed import costs for Indian buyers. Global oil supply declined by a further 1.8 million barrels per day in April 2026, with output from Gulf countries affected by the Strait of Hormuz closure running 14.4 million barrels per day below pre-war levels.
On the demand side, India's tire manufacturing sector continued to provide a stable consumption floor for TDAE. Replacement demand contributes nearly 60% of total tire sales in India, driven by poor road conditions in certain regions and increasing average vehicle usage. However, the sector faced cost headwinds. A prolonged Middle East conflict constrained earnings for Indian tire makers, as exports — which account for a quarter of industry revenues — were hit hard by soaring freight and insurance costs, while raw material costs including crude oil-linked synthetic rubber and processing oils rose sharply.
Looking ahead into June 2026, TDAE prices in India are expected to remain firm and may extend gains modestly, supported by continued feedstock tightness and logistical constraints from Middle Eastern supply routes. Even as the Strait of Hormuz is expected to gradually resume flows from late June onwards, the residual disruption — including rerouted vessels, depleted terminal inventories, and elevated war-risk insurance premiums — will sustain cost pressure on TDAE imports for several months. Domestic tire manufacturers, facing margin compression from multiple input cost vectors, may attempt price pass-through to end buyers in June, lending additional demand-side support to TDAE procurement. Buyers are advised to anticipate sustained TDAE price firmness through mid-2026 as supply chain normalization progresses at a slower pace than markets currently anticipate.
