Treated Distillate Aromatic Extract (TDAE) prices in India and Malaysia held their ground in November, as lower Malaysian crude costs and better manufacturing supported supply, amid steady demand, led by India's strong auto sales. Restocking was again lackluster, and prices are expected to weaken in December on seasonal sluggishness.
Prices of TDAE in India and Malaysia were stable in November 2025 on the back of balanced supply and steady downstream demand. The market in Malaysia, which saw some localized disruptions, and in India, where restocking was muted, still held their ground to reflect resilience in both production and consumption trends.
On the supply side, Malaysia's feedstock environment was favorable, as upstream crude oil prices trended at the lower end during the month, easing production costs for domestic TDAE manufacturers. Malaysian manufacturing activity continued to strengthen, improving from the prior month. Pre-production inventories fell for a fifth successive month as firms drew on stock to meet improving factory activity. New orders meanwhile expanded for a third time in four months, registering their quickest pace since April 2022, although foreign demand softened slightly. These factors combined to continue steady TDAE output across the region.
However, logistics disruption due to flooding in Malaysia created pockets of supply tightness. Closures of key roads leading to container movements to and from Port Klang temporarily slowed down both TDAE shipments and the inflow of crude oil into the country. However, any pronounced supply shock in the regional market was avoided since Indian buyers had already done substantial restocking in anticipation of the October festivities. This kept inventory levels comfortable through November in India and cushioned the impact of Malaysian supply interruptions.
On the demand side, India’s automotive sector was a source of solid underlying support, though restocking needs for TDAE were limited. India’s top automakers reported solid year-on-year sales increases in November, buoyed by earlier tax cuts that made both SUVs and small cars more affordable. Maruti Suzuki saw a 21% increase in domestic sales, while Mahindra & Mahindra and Tata Motors each posted 22% gains; Hyundai Motor India reported 4.3% growth. Solid consumer demand, especially for premium and utility vehicles, kept the sector buoyant well past the festive season. Most downstream industries, though, completed their procurement in October, so fresh restocking activity in November remained subdued, keeping TDAE demand broadly steady rather than expansionary.
Demand signals for the Malaysian TDAE in the wider Asian market were mixed. A surge in imported vehicle sales, supported by strong interest in Tesla and German models, pushed imports up 23% in South Korea during the period, but that ironically dampened confidence within the domestic automakers and kept their TDAE restocking conservative. Automotive sales from major players Geely, Leapmotor, Xiaomi, Nio, and Xpeng soared in China, partly because consumers wanted to take advantage of the full NEV tax exemption before policy changes occurred in 2026. The latter kept Chinese TDAE demand steady through the month.
Looking ahead, as per ChemAnalyst prices of TDAE may soften in December because of expected seasonal slowdown in global manufacturing activity and delayed bookings into the new year.
