For the Quarter Ending March 2025
North America
During Q1 2025, the North American Tetraacetylethylenediamine (TAED) market remained relatively stable, with slight fluctuations reflecting broader trends in the downstream FMCG sector. Demand from the detergent and cleaning product segment, a key FMCG vertical, remained steady but cautious amid persistent inflationary pressures and shifts in consumer spending. Large FMCG firms, including Procter & Gamble and Colgate-Palmolive, maintained production levels but adopted disciplined procurement strategies, focusing on efficiency and inventory control due to sluggish retail sales growth.
On the supply side, TAED imports from Asia increased modestly, driven by oversupply in the Chinese market and favourable freight rates. However, abundant inventories across the North American distributors and subdued restocking activity kept buying momentum restrained. While supply levels remained sufficient, suppliers faced pressure to maintain competitive pricing amid cautious demand.
Overall, the TAED market in North America was shaped by a well-balanced demand-supply dynamic, with the downstream FMCG industry's stable yet conservative approach anchoring pricing and trade flows throughout the quarter.
APAC
The APAC Tetraacetylethylenediamine (TAED) market closed the quarter Q1 2025 with a modest 0.59% increase, supported primarily by upstream cost pressures and temporary supply tightness. In January, TAED prices surged nearly around 5% in India, driven by elevated feedstock prices—Acetic Anhydride rose by 2%—and reduced production in China ahead of Lunar New Year shutdowns. This supply squeeze, coupled with limited domestic inventories following year-end liquidation in December 2024, constrained availability and supported price gains.
Import costs also rose due to the 0.61% depreciation of the Indian Rupee against the US Dollar, making foreign-sourced TAED more expensive. Although intra-Asia freight charges fell, the production halt and slowed port operations in China delayed shipments, further tightening supply.
Despite these supportive fundamentals early in the quarter, February and March saw an increasing pressure from aggressive Chinese inventory liquidation and moderate downstream demand. However, the strong January rally, buoyed by cost-push and currency-led import inflation, ultimately kept quarterly pricing in positive territory.
EUROPE
In Q1 2025, the European Tetraacetylethylenediamine (TAED) market experienced moderate demand recovery, closely tied to evolving dynamics in the downstream FMCG sector. Consumption from detergent and household cleaning product manufacturers showed a seasonal uptick, supported by spring cleaning trends and consistent retail performance across Western Europe. Major FMCG players, including Unilever and Reckitt, reported steady demand for cleaning agents, which sustained procurement activity for TAED.
However, suppliers operated under margin pressure due to elevated energy and labor costs in the region, limiting production flexibility. While local production remained stable, buyers increasingly turned to competitively priced imports from Asia, particularly China, where surplus supply and softening input costs enabled aggressive export offers.
Despite the influx of imports, inventory build-up was limited as FMCG manufacturers exercised disciplined procurement amid ongoing economic uncertainties. The TAED market, thus, remained balanced, with slightly bullish undertones by quarter-end, driven by stable downstream demand and cautious supply management within the European FMCG value chain.
For the Quarter Ending December 2024
North America
TAED prices in the North American market exhibited mixed trends during Q4 2024, initially rising in October due to unfavorable port conditions and logistical challenges. The ongoing strike between the International Longshoremen's Association (ILA) and United States Maritime Alliance (USMX), coupled with rising production costs in Asia, constrained TAED circulation in the domestic market. Imports were further limited by multiple plant shutdowns during the Chinese National Holiday, which curtailed production across the Asian market. In China, TAED supplies remained tight, with most suppliers reporting low inventories.
Under pressure to meet immediate downstream demand, many suppliers raised prices. The upcoming Chinese Lunar New Year also led to restocking activities, further driving up prices. While feedstock acetic anhydride prices fell by approximately 8%, ethylene prices increased by around 3%, supporting higher TAED prices. Ethylene operating rates dropped by 1.11% month-on-month, reducing its availability and lowering TAED production levels. Suppliers, active in the spot market, passed the increased ethylene costs to downstream buyers, adding to the upward price trend.
Toward the end of the quarter, prices depreciated significantly as liquidation activities persisted. Consumers across North America faced slow business conditions, with businesses and markets winding down operations. To avoid end-of-year tax repercussions and inventory devaluation, suppliers aggressively liquidated inventories, which created bearish pricing dynamics and further weighed on TAED prices.
Europe
TAED prices in the European market exhibited mixed trends during Q4 2024, initially rising in October due to unfavorable port conditions and logistical challenges. Ongoing strikes at major European ports and rising production costs in Asia constrained TAED circulation in the regional market. Imports were further limited by multiple plant shutdowns during the Chinese National Holiday, which curtailed production across the Asian market. In China, TAED supplies remained tight, with most suppliers reporting low inventories. Under pressure to meet immediate downstream demand, many suppliers raised prices. The upcoming Chinese Lunar New Year also led to restocking activities, further driving up prices. While feedstock acetic anhydride prices fell by approximately 8%, ethylene prices increased by around 3%, supporting higher TAED prices. Ethylene operating rates dropped by 1.11% month-on-month, reducing its availability and lowering TAED production levels. Suppliers, active in the spot market, passed the increased ethylene costs to downstream buyers, adding to the upward price trend.
Toward the end of the quarter, prices depreciated significantly as liquidation activities persisted. Consumers across Europe faced slow business conditions as businesses and markets wound down operations. To avoid end-of-year tax repercussions and inventory devaluation, suppliers aggressively liquidated inventories, creating bearish pricing dynamics and further weighing on TAED prices.
APAC
TAED prices across the Asia-Pacific market experienced mixed conditions during Q4 2024, with an initial price depreciation of approximately 3% in October, followed by a 3.3% increase later in the quarter. At the start of the quarter, the Tetra Acetyl Ethylene Diamine (TAED) market saw moderate price declines due to improved domestic supply conditions. The resumption of production after the typhoon season restored normal supply levels, resulting in quicker delivery times and contributing to the price drop. Production costs exhibited mixed trends, with feedstock ethylene prices decreasing by approximately 5%, while acetic anhydride prices rose by 1.3%. These balanced changes in input costs helped maintain overall price stability in the TAED market during October 2024.
Toward the middle of the quarter, TAED production costs in China remained high in November 2024, despite a 1% decline in ethylene prices. However, acetic anhydride prices increased by about 1%, keeping production costs elevated. Additionally, several acetic anhydride plants in Shandong were shut down for maintenance, restricting supply. On the other hand, ethylene production improved, with output rising from 2,669 MT to 2,726 MT (a 2% increase), according to NBS China data, though October figures were pending. This higher ethylene output exerted downward pressure on TAED production costs. However, surging freight charges on intra-Asia routes—up by approximately 54%—hindered suppliers' ability to export cargoes overseas. The resulting disruption in exports led to inventory buildup at Chinese ports. Domestically, suppliers rushed to clear existing stock before the end of the financial year to avoid potential devaluation, resulting in loose TAED supplies in the market.
Toward the end of the quarter, TAED supplies in China tightened, with most suppliers reporting low inventories. Many suppliers, under pressure to meet immediate downstream demand, raised prices. The approach of the Chinese Lunar New Year also prompted restocking activities, which further pushed prices higher. During this period, acetic anhydride prices decreased by approximately 8%, while ethylene prices rose by about 3%, providing upward support for TAED prices. Monthly ethylene operating rates declined by 1.11%, reducing availability and limiting TAED production levels. Tight supply conditions, combined with increased feedstock costs, contributed to higher TAED prices. Suppliers were highly active in the spot market, passing on elevated ethylene costs to downstream customers, who were less inclined to negotiate lower prices. This bullish sentiment, driven by a combination of tight supply, higher input costs, and robust market activity, sustained the price increases for TAED in the region.
For the Quarter Ending September 2024
North America
The TAED market in North America experienced a significant price increase towards the end of the third quarter, primarily driven by a combination of heightened demand and supply constraints. Most notable price changes occurred in the final month of the quarter, aligning with an uptick in demand conditions alongside maintenance turnarounds at several production facilities. This situation was particularly influenced by the surfactant industry, where demand from the beauty sector played a pivotal role in supporting the upward price trend. The price inflation was largely attributed to limited inventories available for export from Asia, where maintenance activities at production sites led to decreased output. As a result, the flow of TAED into the U.S. market was restricted, further amplifying price increases.
Additionally, improved demand conditions across Asia contributed to this scarcity, creating a ripple effect that impacted U.S. pricing. Supporting this trend was a 0.2% increase in consumer spending in the U.S. during August, as reported by the American Chemistry Council. This growth, driven primarily by increased spending on services, suggested a potential rise in demand for TAED products, particularly in connection with consumer goods. Compounding these supply challenges were disruptions caused by Hurricane Helene, a Category 4 storm that significantly affected logistics and supply chains in the southeastern United States. The storm resulted in longer lead times for deliveries, exacerbating inventory shortages and pushing TAED prices even higher as suppliers struggled to meet market demand.
In summary, the interplay of limited supply from Asia, increased domestic demand, and logistical disruptions due to the hurricane collectively fuelled substantial price hikes in the North American TAED market during the quarter.
APAC
The Asian TAED market experienced a significant price surge of approximately 17% during the third quarter of 2024. This increase was primarily driven by reduced product availability and a partial uptick in demand from the downstream surfactant industry, especially during the festive Mid-Autumn season, which includes key events like Silver September and Golden October. Notably, this price rise occurred despite a decrease in feedstock prices, such as Ethylene and Acetic Anhydride. Most of the price changes were observed in the final month of the quarter, coinciding with an uptick in demand conditions and maintenance turnarounds at some production facilities. The surfactant industry's demand, particularly from the beauty sector, also contributed to this positive trend. Insights from China's beauty market revealed that moisturizers represented 62.9% of the skincare category, growing by 9.5%, and overall skincare sales increased by 4.2%. Online sales accounted for over 80% of total skincare sales, highlighting a robust demand from the downstream FMCG sector. Additionally, TAED price inflation in China was bolstered by improved demand from the US market, where consumer spending increased by 0.2% in August, as reported by the American Chemistry Council. This rise in spending, particularly on services, is expected to further boost TAED demand in China, influencing prices across Asia. The interconnected demand from both local and international markets is likely to shape future pricing trends for TAED, emphasizing the importance of monitoring these dynamics closely.
Europe
The European TAED market saw a substantial price increase during the third quarter, driven by several interrelated factors primarily rooted in the Asian supply chain. Production levels in key exporting regions, particularly in China, were notably low due to multiple facilities undergoing maintenance turnarounds. This situation restricted the availability of TAED for export to Europe, creating a supply crunch that contributed to rising prices. Compounding these supply issues were delays in shipments resulting from ongoing crises in the Red Sea, which affected shipping routes and led to longer lead times for deliveries. Such logistical challenges further exacerbated the strain on the supply chain, making it difficult for European markets to replenish inventories promptly In Europe, the market typically experiences a downturn in demand following the summer vacations, but this year the recovery has been particularly sluggish. Many suppliers opted to stockpile inventories in anticipation of increased demand during the festive quarter, which often sees heightened transactions in preparation for seasonal sales. This strategic buildup of stock not only aimed to mitigate potential shortages but also exerted upward pressure on prices as suppliers sought to capitalize on the anticipated surge in demand. Overall, the combination of constrained supply from Asia, logistical disruptions, and proactive inventory management in Europe created a robust upward trajectory for TAED prices during the quarter.
